Question NW721 to the Minister of Small Business Development

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25 November 2016 - NW721

Profile picture: Madisha, Mr WM

Madisha, Mr WM to ask the Minister of Small Business Development

(1)Whether, during the period 1 January 2009 to 31 December 2015, the Government has succeeded in substantially rejuvenating township economies in all nine provinces, allowing for a sizeable percentage of township residents to find rewarding and sustainable economic opportunities and employment for themselves as entrepreneurs and workers within the township economies; if not, why not; if so, what (a) are the details concerning the (i) size, (ii) extent and (iii) value of such township economies and (b) is the number of new job opportunities township economies have created in each specified year; (2) whether she will (a) list the 20 most progressive, vibrant and dynamic township economies in South Africa and (b) give an indication of their contribution to the GDP?

Reply:

1. The department of small business development was proclaimed in July 2014 and currently does not have this information. Since this is a critical sector of the economy the department has prioritized the development of an Integrated Strategy and Implementation Plan on Township and Rural Enterprise Development. Amongst other things this strategy will assist with the following:

  • A detailed analysis of the existing strategies and frameworks on township and rural enterprise development
  • A detailed analysis of the programmes that are being implemented by different government departments and agencies on township and rural enterprise development
  • Design of most appropriate programmes or other support interventions to ensure the optimal development of small enteprises and co-operatives in townships and rural areas

The department is confident that this study which is going to be done in 2016/17 financial year in partnership with the departments that fall under the Economic Sectors, Employment and Infrastructure Development (ESEID) Cluster will address some of the questions that have been asked in this question.

2. 

(a) Noting that there are insufficient and nonstandardised measurements of what consists the totality of a township economy relative to a regional, provincial, national and global economies, it is not yet possible to rank the performance and responsiveness of townships’ economies.

(b) Consequently, save for a framework that defines the nature and structure of township economies as well as the data sources for measuring it, thus far, reliable methods by means of which the monetary value of the goods and services produced within townships have not been isolated and represented during any specific time.

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