Economic Opportunities
(1) Whether the study on the economy of townships has commenced; if not, why not; if so, (a) what progress has been made and (b) what is the scope of the study;
(2) whether the study has been outsourced; if not, (a) which unit is responsible and (b) what is the capability level of personnel doing such work; if so, (c) who is the service provider, (d) how was the service provider sourced and (e) what is their profile?
1. [a] What progress has been made?
The study pertaining to the township economy forms part of a wider initiative.
The informal economy was identified as a potential priority to be discussed at the Department’s Strategic workshop held in August of 2017. A resolution was taken at the workshop,that the informal economy will form part of the Department’s new 5-year strategy.
To date, the department has commenced a desk based research on the informal economy and models for intervention. The department has also in collaboration with the HOD of Provincial Treasury discussed what will be taken forward in the 2018/19 financial year.
In the 3rd quarter of the current financial year, senior managers from the various programmes within the Department of Economic Development and Tourism [DEDAT]conducted visits to townships to get first-hand experience on the dynamics and challenges experienced by township economy businesses. The Cape IT Initiative CEO and officials from the Department of Community Safety accompanied these managers.
The Informal and Township economy initiative is due to be initiated in 2018/19, once budgets and resources are availed. However, in preparation of its 2018/19 work, the Department has workshopped key literature review findings and policy approaches on the informal economy to provide the Department with a better understanding of the different options that could be adopted in its strategic approach.
With respect to the Township economy, the Department understands the township economy consists of both informal and formal businesses, and needs to be evaluated through stakeholder and spatial lenses and also requires strong collaboration with our WCG sister departments such as Department of Human Settlements as well as the municipalities.
As such, the Department has engaged with the Western Cape Economic Development Partnership [WCEDP] to draw on their expertise with respect to stakeholder partnerships and spatial development skills to conduct a deep-dive assessment within one or two townships to provide the WCG with a better understanding of how we are able to support and facilitate dynamic growth and job creation within townships.
All of the above notwithstanding, the Department has implemented a number of interventions within townships. For example, the Design and Innovation Unit has collaborated with the Department of Human Settlements over the last 2 years by using a Design Challenge methodology focused on upgrading and/or redesigning informal structures, upskilling and supporting informal businesses that provide and build these informal buildings, using recycled materials, and more recently, the investigation into the financing of the informal structures. This process, which will inform both the Department of Human Settlements and DEDAT work, is expected to be completed in 2018/19.
Furthermore, Programme 2: IEDS has driven an innovative project with Pick n Pay, aptly named the Township Economy Revitalisation Initiative. This initiative involves the conversion of existing spaza shops within townships into independently owned mini-supermarkets. The initiative will improve the infrastructure (renovations of existing building, acquisition of new machinery and equipment) in the township retail sector which will directly lead to an increase in employment opportunities and turnover.
To date, two stores were opened in Cape Town namely Nozinga Market in Gugulethu and Ndwamba Market in Nyanga. The stakeholders that made this possible includes the DEDAT, Pick n Pay, City of Cape Town, the National Empowerment Fund, Masisizane, Old Mutual and Brimstone. DEDAT continues its commitment to creating partnerships with role-players in the corporate sector, academia and other public sector organisations, knowing that the economic situation facing our country cannot be resolved by government alone. The building of these partnerships will go a long way to resolving these economic challenges.
The Digital Economy Sub-Programme has placed a huge emphasis on delivering support to the citizens and entrepreneurs in townships, with the initial focus being on ensuring that townships have access to limited free wifi hotspots, as well as the Khayelitsha-based Digital Incubator for Entrepreneurs and the ICAN Elsies River which is more focused on citizen skills development. More recently, as support to the Alcohol Reduction Game-changer, the Digital Economy team is introducing ICAN Play within township settings, supporting facilities that allow citizens access to digital games. e-Gaming not only provide citizens with alternate recreational opportunities, but are a powerful means to introduce citizens to the Digital Economy and stimulate digital skills development. An ICAN Play facility at Khayelitsha has been opened and the Department intends supporting a second facility in the forthcoming months, once the procurement processes have been completed.
[1] [b] What is the scope of the study?
The scope of the study includes the breadth of the informal economy which includes the township economy.
[2] Whether the study has been outsourced; if not, [a] which unit is responsible and [b] what is the capability level of personnel doing such work; if so, [c] who is the service provider, [d] how was the service provider sourced and [e] what is their profile?
The Department intends to establish a stakeholder forum consisting of relevant Programmes within DEDAT, sister WCG Departments and municipalities to leverage as much skills and resources as possible.
a] The work has currently been assigned to the Research and Planning & Policy (REPP) Unit within DEDAT as the 2018/19 will be incorporated into the next 5-year plan.
b] The REPP team consists of experienced researchers but there are capacity constraints. A request is being submitted to Provincial Treasury for additional human resources to drive the intervention forward.
c] No service provider has been assigned at this stage and the work to be conducted by
the WCEDP is expected to undertake within the scope of their current mandate.
d] N/A
e] N/A
