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A new economic development plan has been announced that will put Soweto squarely in the limelight, and bring more business to its entrepreneurs.
Executive Mayor Amos Masondo receives a gift from members of the Soweto business sector
(Photo: Enoch Lehung, City of Johannesburg)
SOWETO, that sleeping giant, that diamond in the rough, is slowly lifting its heavy head. For the first time in its history, it has an economic development plan to guide all planning and investment in the region over the next five years.
Johannesburg unveiled the plan at Ubuntu Kraal in Orlando West on 20 October to some 500 delegates from various business sectors in Soweto.
The plan will turn the mainly poor, residential township into "an iconic region and a distinct brand" through four economic interventions: developing a number of diverse industries; growing the skills base; creating better institutional conditions for businesses and potential entrepreneurs; and turning Soweto into a powerful brand.
The launch also heralds the first official engagement of all Soweto businesses under one umbrella body, the Greater Soweto Business Forum, with the City of Johannesburg.
"This engagement demonstrates a commitment to a common objective that goes beyond the narrow interests of individual businesses and looks at society from a much broader perspective," confirmed Executive Mayor Amos Masondo at the launch.
Airing concerns
Business delegates made ample use of the platform to air some of their grievances to senior City officials, with some robust debate ensuing.
The removal of informal traders from certain areas was a sore point. In 2007, the City launched a trading demarcating policy, restricting informal traders to specific, allocated and regulated areas. This policy, although discussed with all stakeholders, has not been widely adopted and accepted by the informal trading sector.
Spaza shops have also suffered as a result of unprecedented growth, with the region now home to about eight large shopping malls. The City was in discussions with the bigger retailers to look at various propositions to assist these spaza shop owners, confirmed the City's executive director for economic development, Jason Ngobeni.
The idea was to start uniquely Sowetan franchises, he said. "We need to be innovative."
Procurement of contracts was also questioned, with some Sowetan businesspeople holding the view that locals should receive preferential treatment for projects in the area.
Parks Tau, the member of the mayoral committee for finance and economic development, made it clear that the City's procurement was transparent. "There is equal access and opportunities for all."
He also told black businesses that they should look beyond being appendices to white businesses. Through its new plan, the City hoped to grow a base of black Sowetan entrepreneurs.
"Our intention is to build competent and independent [black] entrepreneurs."
So where to, Soweto?
There was a time when the words "Soweto" and "business" were never used in the same sentence. Today, the tell-tale signs of massive developments under way are hard to miss, and include the Baralink hub, Orlando Ekhaya, the Jabulani precinct and others. Total investment is estimated at R3,5-billion.
The first project to be launched early in November as part of the plan is the Soweto Empowerment Zone. A public-private initiative, it is an industrial hub with various clusters, ranging from medical and printing, to furniture.
According to Ngobeni, Soweto had economies of scale not found in any other township.
"For Johannesburg to be a world-class African City, Soweto must play an important and elevated role," he said.
Soweto Chamber of Commerce and Industry treasurer, Mosibudi Mathole, said the time had also come for Soweto businesses to join a business association because the City engaged with businesses in a collective manner, not as individuals.
"Find yourselves a home," she told delegates.
The City will also launch the Jozi Equity Fund in the near future. This fund will give businesses participating in City-related initiatives or programmes access to equity funding.
"If you do business with the City, we'll take the risk on to ourselves, provided you meet particular targets," Tau confirmed.
A database of Sowetan businesses is also about to be drawn up. It will list the type and number of skills available in the area.
"We are hoping to be the first in South Africa to pass a law that requires [companies] to make use of small businesses recognised by the City," Ngobeni said.
"Soweto is already a powerful brand but we need to make it sustainable," he added.
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