The budget allocation will focus on initiatives that support small businesses, create jobs, and improve access to services in townships across the province.
The goal is to ensure that townships are not left behind in terms of economic development and job creation. By investing in these areas, the Gauteng Province hopes to create a more equitable environment for everyone living within its borders.
During his first annual State of the Province address, on Tuesday earlier this week Gauteng Premier Panyaza Lesufi stated that townships are the province's "new gold" and with new malls and filling stations being rapidly set up, the government must ensure that these investments benefit the people.
The Provincial Government plans to allocate 60% of its R34 billion goods and services budget, approximately R20.4 billion, to support township initiatives. He added that the Township Economic Development Act, a blueprint for supporting township businesses and funding them, has been adopted by the legislature.
“This house [legislature] unanimously adopted the Township Economic Development Act, a blueprint on how we will support township businesses and fund them. We want this act to migrate from paper to practice.” Said Lesufi
The government is finalising a financing model to allow township businesses to have their bulk buying mechanism through township-based warehouses and distribution centres.
The province is also upscaling the formalisation and upgrading of backroom properties, empowering landlords to get into the real estate industry.
The government has approved R50 million for backroom property owners, with 40 loans approved to date. Furthermore, a Gauteng Broadband Network will be installed to provide reliable internet access in townships by making free WiFi available in strategic areas.
The taxi industry also forms part of the provincial government’s plan, as it plays a vital role in the township economy. Hence the government has put together a taxi fund of R20 million, as seed capital for the taxi association to raise money in the market.
The premier further stated that a new model of taxi rank will be unveiled, adding that Taxi ranks with relevant infrastructure that reflects a future path for the industry will be launched and will be a one-stop shop for taxi parts and tyres, banks, restaurants, and filling stations.
