By Bonginkosi Dhlamini
There are fewer topics that are as contentious as South Africa’s dealings with foreign nationals who live in the country legally or otherwise.
The Gauteng Township Economic Development Draft Bill, that was gazetted last week by the provincial Department of Economic Development has added to these contentions. It proposes to revitalise and reserve certain sectors of township economies exclusively for South African citizens or naturalised citizens in Gauteng.
The bill was first mooted by Premier David Makhura in his 2019 State of the Province Address.
The bill gives due consideration to the empowerment of township enterprises by seeking to include them in state procurement and devising appropriate funding models for the benefit of citizens in the informal sector and labour markets.
The IFP welcomes and supports the draft bill in so far as it aims to address issues of funding and reduce red tape that is stifling the potential growth of township businesses. Some commentators have critiqued the proposed draft bill on the basis that it will be devastating for the province’s attractiveness to foreign direct investment. This argument is unconvincing considering that township economies have always been coalescent hubs for innovative and practical-minded entrepreneurs and for those willing to invest in them.
Gauteng’s township economy is worth billions. Township economies remain a lucrative consumer market, with many fast-moving consumer goods and services companies increasingly seeking a share of it. Little wonder that large retailers like Pick * Pay, Woolworths and Shoprite are reinventing themselves to directly compete with local spazas and independent retailers in the townships.
Few citizens today are emerging as successful business pioneers in townships. This indicates that there is still a need for more sustainable development programmes that will transform townships’ economies into productive centres that provide employment and transform the living conditions of citizens.
What has prevented this happening is a combination of systematic factors such as the draconian by-laws that frustrate operations of small and medium enterprises.
Also, scarcity of funding opportunities and cumbersome processes in establishing businesses have often relegated aspirant, local entrepreneurs to the informal sector.
Foreign migrants have managed to find a niche in the township economies, running spaza shops, hair and beauty salons, as mechanics, carpentry businesses, etc.
They have managed to make the best of the situation where some operate without licences and little to no regulation.
This bill can be used to ensure compliance with business regulations by those unregistered businesses. Fundamentally, it can also serve to prioritise economic space for South African citizens and permanent residents.
As the IFP, we condemn discrimination against foreign nationals.
Other African countries such as Ethiopia, Nigeria and Ghana have similar legislations where foreign shareholding and operating in certain sectors is restricted.
The bill can and ought to be interpreted as championing the needs of local communities in Gauteng. It is not a matter of choice, but a necessity given the unemployment, poverty, and inequality. These are the immediate threats to the future of our country.
After all, charity, as the proverb goes, begins at home.
* Dhlamini is a member of the Gauteng provincial legislature and chairperson of the IFP Gauteng.
** The views expressed herein are not necessarily those of Independent Media.