City of Joburg allocates R1 bn for township enterprise development after Soweto attacks

FEBRUARY 2, 2015

The City of Johannesburg has set aside R1 billion for the sole purpose of growing and supporting small business and cooperatives in townships the Portfolio Committee on Small Business and Development has heard.

City Mayor, Mr Parks Tau, told Members of Parliament that the City operated on a capital budget of about R48 billion, and that made it possible to finance and grow small business enterprises in their locations.

The Chairperson of the Committee, Ms Ruth Bhengu, welcomed the approach by the City of Johannesburg and said this was a model to be followed countrywide.

“When transforming the economy one needed to be broadminded especially because South Africa’s economy is a consumption-oriented economy. There must be something wrong, if the majority of the population is largely made up of consumers,” Ms Bhengu said.

The Committee is visiting tuck shops and spaza shops in Soweto, following a recent spate of violent attacks on foreign owned shops. Ms Bhengu said the Committee condemned the xenophobic driven violence, and the criminal elements that took advantage of the situation.

“The outcry that wholesalers, mall owners and foreigners are pushing South Africans out of the economy appears justified, and in fact the Committee received complaints to this effect hence it wanted to visit Johannesburg last year already,” Ms Bhengu said.