Financial barriers faced by township businesses highlighted at G20 session
A lack of access to funding for township entrepreneurs due to government red tape was a burning issue at the second session of the provincial G20 in Gqeberha.
At Wednesday's event at the Nangoza Jebe Hall in New Brighton, speakers addressed the financial challenges faced by township business owners.
Small business development minister Stella Ndabeni led the talks.
Speaking on the sidelines, Nelson Mandela Bay mayor Babalwa Lobishe said she would lobby Ndabeni to provide resources to assist aspiring spaza shop owners and those wanting to grow their establishments.
'The eminent challenge is resource mobilisation in terms of the spaza shops,' Lobishe said.
'In December, the minister assisted in buying some of the equipment for spaza shops.'
Lobishe said foreign nationals predominantly owned spaza shops.
'We want spaza shops in shipping containers.
'We requested the minister to assist us with the containers as part of this programme to grow small business owners.
'To ensure that local people entered that space in numbers, we called for people to apply for shipping containers they could operate from.'
She said applications closed in March.
Lobishe said they would assist entrepreneurs with rezoning their properties to ensure everything was in place when the containers arrived.
'We want them to be trained so they are equipped to grow,' she said.
The meeting was attended by entrepreneurs from townships such as Motherwell and KwaNobuhle, along with Nafcoc representatives.
Ndabeni said documentation required by financing institutions in the public and private sectors proved challenging.
She said her department had developed a funding policy for small businesses, outlining the requirements for entities seeking to support township entrepreneurs.
'We are workshopping finance institutions and the entrepreneurs on this, who face challenges with the documentation required before their applications can be approved.
'We are here to listen to entrepreneurs across the country to ensure we improve how we support small businesses so they can access funding instead of being left out.'
Ndabeni said the policy had received cabinet approval.
The Herald
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