​Gauteng News
The adoption of the Township Economic Development Bill is a game-changer for Gauteng, as it will accelerate support for the township economy.
Following various consultation sessions with stakeholders across the province during the course of 2021, the Gauteng Legislature passed the Bill into law on Thursday. 
"The Bill is an important milestone for the province. It is a new deal for the townships of Gauteng which allows us to change the economic geography and to ensure we change spatial and economic disappearances," MEC for Economic Development, Parks Tau told Gauteng News.
The Bill provides a regulatory framework that makes it possible for people living in townships to establish viable and thriving businesses, enterprises, small enterprises, and co-operatives in a less bureaucratic environment making it easy to climb the economic ladder.
The Bill introduces an enabling framework to ensure that retail malls and supermarkets that are township-based partner with local township-based enterprises, including the sourcing of some of the products and services from local township-based producers, service providers and manufacturers, Tau said. 
The Township Economic Development Bill establishes specific procurement rules and programmatic support that allows government and its main contractors to spend a certain percentage of their procurement spend on township-based enterprises, entrepreneurs, or co-operatives.
"We have started with our engagements, especially with private sector enterprises. We are saying to the private sector, instead of being extractors of resources in the townships, they must become part of an eco-system which is about development."
He encouraged the private sector to come on board to explore and maximise opportunities in the backyard shacks economy which is home to 4-million people so that they can build flats and small businesses that eventually become township high-streets.
In its wide implementation, the Township Economic Development Bill promises to unleash a Township Partnership Fund for township-based businesses, support the Taxi Rank economy, the Backyard Real Estate developments, and the upliftment of township Retail Businesses.
Given the influx of people at taxi ranks the act promotes incentives for municipalities to develop taxi ranks into micro-central business districts, enabling the taxi economy to use its scale to grow supporting value chains and industries. 
Tau said this will promote the township-based real estate development model to convert areas with high commercial densities into township high streets as well as supporting the development of representative associations of township-based enterprises and non-profit organisations.
The by-laws enabled by this act also makes it easier to incentivise the installation of broadband in township enterprise zones and empower township-based internet service providers. 
Tau said research undertaken by his department found that 90% of township enterprises, at different levels, do not have a business account, are not registered, yet they are engaged in entrepreneurial activity that generates income and creates jobs.
"This Bill is introducing a different realm of regulation to allow them to access operating licenses and opportunities like access to funding.  For example, when we introduced the grant in 2021 for businesses that were impacted by the July riots, the challenge we had was that many small businesses did not have a verification mechanism. 
"This Bill will help us address such challenges. It will allow township enterprises access to developmental opportunities, access to finance, training, equipment, and new markets directly. It is more of a developmental while, addressing the objectives of the country in terms of economic spatiality and those who were previously disadvantaged, by the colour of their skin."
Responding to criticism that the act seeks to drive foreign nationals out of townships and fuels xenophobia, Tau said it is not written to exclude, rather address a set of issues of those who were historically disadvantaged.  
"It is important that we do not fall into the trap of being part of a discourse that creates tension in our townships. However, it will be unreasonable for us to allow those who are illegal in the country to access a financial mechanism that government has created." 
Premier, David Makhura has welcomed the passing of the act saying it will open many opportunities for township-based businesses. 
"Government can now be able to buy from a large group or groups of township-based enterprises, with systems linking them so they can supply as if they are one large enterprise with an aim of encouraging co-operation and competition among enterprises strictly prohibiting price fixing and collusion," said Makhura.