As South Africans head to the polls, Bulelani Balabala, founder of the Township Entrepreneurs Alliance (TEA), says the often-neglected constituency will support parties and candidates committed to making business easier for them. Balabala told Business Times that the biggest priority for entrepreneurs voting in the local government elections was the removal of barriers to doing business in townships. He emphasized that the government's mandate is to create an enabling environment for trade.
TEA is holding a township economy summit in Tembisa, Gauteng, on November 19 and 20, with free attendance and details available on the TEA website. The summit will feature a "kasi pitching challenge" where the alliance will distribute about R150,000 to the top six pitchers. An exhibition will also be held for corporates, government authorities, and township businesses to showcase their products, goods, and services.
According to Balabala, local governments should change bylaws to benefit entrepreneurs and business founders of all stripes. He noted that townships are often considered consumer-based markets, but they are also areas where commerce, consumption, and production happen. Balabala cited the example of the spaza shop fund, which was deemed an epic fail due to development funders not taking a development view when dispersing the money.
TEA's surveys among township entrepreneurs found that despite a widespread increase in the use of point-of-sale (POS) machines and POS devices, only 9% of entrepreneurs confirmed that they actually have POS devices, while 95% expressed interest in them. About 80% of entrepreneurs mentioned a big infrastructural disparity in the various communities they operate in.
The survey also revealed that only 5% of entrepreneurs are utilizing AI tools effectively in their businesses, and only 24% are using digital tools in general to optimize their business. Balabala emphasized that there is a need for support and resources to help township entrepreneurs access and utilize these tools.
In its quarterly reform tracker, Business Leadership South Africa (BLSA) reported that governance reforms had declined for the first time, from 55.0 to 54.6. The decline was attributed to the Constitutional Court's declaration of the Public Procurement Act unconstitutional and invalid due to a lack of meaningful public participation.
Finance minister Enoch Godongwana announced that national departments will receive 47.4% of available non-interest spending, provinces 42.6%, and local government 10% over the medium term. He also allocated an additional R21.8bn to the local government equitable share to cover higher bulk costs of free basic services.
Key points
- Township entrepreneurs seek removal of barriers to doing business ahead of local government elections.
