Finance and Economic Opportunities
With regard to his Department’s Township Economic Growth Strategy:
(1) (a) How long has the Nozinga’s Market not been trading, (b) why has it not been trading, (c) how much debt does the store have and (d) what interventions have been put in place support the store;
(2) (a) what measures have been put in place to support the township economy, (b) which unit in his Department is responsible for this and (c) what is its (i) programmes and (ii) budget?
(a) How long has the Nozinga’s Market not been trading
The store was opened in October 2017 and ceased to trade in February 2021.
(b) Why has it not been trading?
The performance of the store could not sustain the cash flow due to management challenges. The shortage of cash flow resulted in the store not being able to timeously settle invoices with Pick n Pay and other suppliers which resulted in supply being stopped to the store. The owner went outside the Pick n Pay supply chain and could not settle these invoices. A decision was made by the owner to close the store as the store ran out of stock.
(c) How much debt does the store have?
According to the information provided to DEDAT by the store owner, who also gave permission that this information be shared with the member, R6 million in debt is owed.
(d) What interventions have been put in place support the store?
Pick n Pay, in addition to the support offered by the project team, appointed two dedicated managers to assist the store owner. Each manager spent about 6 months with the owner. The recommendations made by the managers were either very reluctantly implemented or not implemented at all.
Furthermore, information requested by Pick n Pay relating to substantial cash withdrawals from the business was not forthcoming from the business owner. These and other operational issues negated the efforts made by Pick n Pay to implement a turnaround plan for the store.
Pick n Pay is currently assisting with the sale of the business to have the store reopened with a new entrepreneur from the community. The new store will have the added benefit of opening with a liquor store for which the liquor licence has been granted. This will enable the store to provide more employment opportunities.
(2) (a) What measures have been put in place to support the township economy?
Please refer to the previous reply to question 15 (1) of question paper 25 of 2021.
(b) Which unit in his Department is responsible for this?
The Enterprise Development unit within Programme Two at DEDAT is responsible for the roll out of this initiative.
(c) What is its (i) programmes and (ii) budget?
(i) In the 2021/22 financial year, the Enterprise Development Unit ran the following programmes:
- The Pick n Pay Market Store Project
- The SMME Booster Fund 2021
- The Western Cape Entrepreneurship Recognition Awards (WCERA)
(ii) The total 2021/22 budget for the Enterprise Development Unit is R27 139 000, 00.
