Enhancing small businesses' role in KZN

CNBC Africa's Gugulethu Cele caught up with acting HOD for Economic Development, Tourism & Environmental Affairs for KZN, Sibusiso Myeza, at the KZN Economic Council Roundtable where the focus was on what is being done to drive the development.

Thu, 02 Mar 2017 06:03:09 GMT

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AI Generated Summary

The historical resilience of townships and rural economies in KZN has highlighted the need for revitalization and sustainable economic growth.
The Department of Economic Development is implementing strategies to facilitate cooperation between small enterprises and big businesses, ensuring a conducive environment for both to thrive.
Efforts to enhance access to finance, markets, and public procurement opportunities aim to empower small businesses and promote economic development at the grassroots level.

The Department of Economic Development, Tourism, and Environmental Affairs in KwaZulu-Natal (KZN) has identified the crucial role that townships and rural economies play in the overall growth of the province's economy. Acting HOD Sibusiso Myeza highlighted the historical resilience of these economies in the 60s, 70s, and 80s when big malls and shopping centers were not prevalent in these areas. Back then, there was a robust circulation of money within these local economies, ensuring sustainability. However, in present times, there is a significant problem of money leakage, where funds do not circulate long enough within these communities. To address this challenge, the Department has crafted a strategy to revitalize townships and rural economies while coexisting with the presence of malls and big businesses. Myeza emphasized the importance of creating an enabling environment where small enterprises can thrive and collaborate with larger establishments. A key aspect of this strategy is the facilitation of cooperation between mall owners and small businesses through measures such as enterprise development and ensuring fair procurement opportunities. By fostering partnerships, the Department aims to enhance small businesses' access to finance and markets, including public procurement opportunities. They have established a microfinance facility in collaboration with state-owned and private financial institutions to support small enterprises in gaining financial resources. Additionally, efforts are underway to promote localization by encouraging the sourcing of goods and services from within the communities, fostering economic growth at the grassroots level. Furthermore, KZN's participation in initiatives like the Gold Coalition, a partnership between government and business, reflects their commitment to addressing policy challenges and supporting small businesses in the province. The proactive approach taken by the Department of Economic Development in KZN underscores their dedication to driving economic development by empowering small businesses and fostering sustainable growth in townships and rural areas.