OVERVIEWDevelopment
OVERVIEWDevelopment financeand SMME supportProvincial government is procuring from small businesses.In the 2023/24 financial year, the Gauteng Provincial Governmentspent R2.2-billion of its procurement budget with townshipenterprises. This is a deliberate policy to bring township businessesinto the mainstream of the economy, and is part of a programmewhich over five years has disbursed R15-billion.In a similar vein, an amount of R14.5-billion was spent between2019 and 2024 with enterprises owned by women, youth andpersons with disabilities. In addition, more than 4 000 townshipretailers received training in 2023/24 in enterprise development,learning various skills required to run a successful business. In termsof paying SMMEs on time the Provincial Government announced inFebruary 2024 that 11 out of 14 departments had achieved 100%compliance on 30-day payments, with two reaching 99%.The 2024 Gauteng Accelerator Programme Innovation Competitionincluded a category called “Township Economy Revitalisation” and thewinners were Nexus (which introduces an adaptive modular systemsfor modular construction), Elisheva Trading (agriprocessing, juices) andMALLI Fintech, a cashless solution for paying for taxi rides.The launch of the Jewellery Manufacturing Precinct within the ORTambo SEZ has not only been a boon to the big companies that havelocated to the site, but 14 SMMEs in the sector have taken up residencewithin the precinct.The township market of about 250 000 township householdsholds enormous potential for collective buying.The Gauteng Growth and Development Agency (GGDA) is linkinglarge companies with small businesses at Special Economic Zones(SEZs). The aim is to create a pipeline for SMMEs.The eKasiLabs programme is an extension of The Innovation Hub’sservice offering. Facilities are spread across the five economic corridorsof the province and a culture of innovation and entrepreneurshipin townships is promoted. The facilities are located in Mohlakeng,Sebokeng, Garankuwa, Soweto, Tembisa, Alexandra, Mamelodi, Kagiso,Kathorus and Mabopane.A Township Economic Development Bill aims to do away withrestrictive bylaws and rezone taxi ranks to allow for the growth of retailoutlets and services such as mechanics and panel-beaters.ONLINE RESOURCESGauteng Growth and Development Agency: www.ggda.co.zaSmall Enterprise Development Agency: www.seda.co.zaThe Innovation Hub: www.theinnovationhub.comSECTOR INSIGHT14 SMMEs are activein the JewelleryManufacturing Precinct.Gauteng has 14 registeredco-operative banking institutionsserving more than 16 000member-owners, with overR100-million in savings andR150-million in assets.About half of South Africa’sformal SMMEs operate inGauteng and more than halfare in the wholesale and retailsector and the accommodationsector. The next most popularsectors are community, socialand personal services.The Small EnterpriseDevelopment Agency, Seda,is an agency of the NationalDepartment of Small BusinessDevelopment in South Africawhich offers customised nonfinancialbusiness support services.Seda has branches in Ekurhuleni(Kempton Park), Tshwane (Pretoria)and Johannesburg which runs five“Contact Points” at Vereeniging,Soweto, Carltonville, Nigel andRandfontein.The national YouthEmployment Stimulus (YES)programme has provided morethan 100 000 young people withworkplace experiences in Gauteng.Other avenues for job creationinclude the Expanded Public WorksProgramme (EPWP). ■GAUTENG BUSINESS 202538
OVERVIEWBanking and financial servicesTaxis are going digital.Taxi commuters no longer need to carry cash. Oratile Seabela’sfrustrations with the clumsy cash transactions that happenedon her daily commute inspired her to come up with an appthat would fix the problem.Her MALLI Fintech app not only fixed theproblem, allowing commuters to use their phonesto scan QR code stickers on the taxi window, butit has earned her support and accolades alongthe way. A R200 000 grant from SAB FoundationSocial Innovation and Disability EmpowermentAwards allowed her to scale the business and in2024 she was one of the winners in the GautengAccelerator Programme (GAP) awards, in theTownship Economy Revitalisation section. Seabela’sapp could have served as the poster for the themeof the 2024 annual awards, which took place underthe heading, “Solving Societal Challenges ThroughTechnology Innovation.”Financial services company Old Mutual has been granted approvalby the Prudential Authority to establish a bank, subject to certainlicence conditions. With more than 30 000 employees in 14 countries,Old Mutual is best known for insurance, but it is now on the path toestablishing a full-service bank. For some time, the group has offeredthe Money Account, a low-cost transactional account which doublesas a unit trust savings account. This product was offered by Old MutualTransaction Services in association with Bidvest Bank Ltd and OldMutual Investment Administrators.Three other new banks are in the pipeline and have receivedregulatory approval: the Young Women in Business Network (YWBN)Mutual Bank, Postbank (a state entity) and the SA Innovative FinancialServices Cooperative (SAIFSC), which will be run by the Departmentof Women, Youth and People with Disabilities.While South Africa’s Big Four – Absa, FirstRand, Nedbank andStandard Bank – continue to play a big role in the banking sector, afeature of the 21st century has been the expansion of the financialONLINE RESOURCESAssociation for Savings and Investment South Africa: www.asisa.org.zaChartered Institute of Government Finance, Audit and Risk Officers:www.cigfaro.co.zaFinancial Sector Conduct Authority: www.fsca.co.zaSECTOR INSIGHTOld Mutual is launchinga bank.services sector, in large measuredriven by digital offerings fromsmaller banks. Capitec was oneof the first, followed by DiscoveryBank and Zero Bank.From 2017, a number ofnew stock exchanges have beenestablished, further evidence ofan opening up of what had formany years been a static sector.The Competition Tribunalhas unconditionally approvedTymeBank’s purchase of RetailCapital, a fintech SMME funder.TymeBank, which is majorityowned by Patrice Motsepe’sAfrican Rainbow Capital, hasbeen moving beyond its basicbanking model recently andthis purchase indicates anotherbroadening of the scope of thebank’s ambitions. TymeBank hasalso signed a deal with TFG toexpand its retail operations. ■PHOTO: Vukile Makau on Pexels39GAUTENG BUSINESS 2025
