Cape Town to address tensions between township traders

A service provider is in the process of being appointed to undertake the study and the results will be made public early next year.

The service provider will conduct a detailed business audit in Khayelitsha, which will serve as a pilot study for other informal trading areas and feed into the City's local economic development plans.

Councillor Simon Grindrod, Mayoral Committee Member for Economic, Social Development and Tourism said the city recognised the important role that small businesses and informal traders play in Cape Town's vibrant economy.

“The on-going conflict among informal traders appears to be caused by highly competitive and sometimes over-traded conditions in areas such as Khayelitsha and Masiphumelele. The threats against foreign traders in our townships are a manifestation of such tensions.

“We need to ascertain why certain communities are able to thrive in unregulated, township conditions and then use this to empower all informal traders by giving them equal access to the necessary information,” said Grindrod.

According to Mansoor Mohamed, the City's Executive Director for Economic, Social Development and Tourism, the primary objective of the study is to determine accurate numbers of local and foreign businesses in Khayelitsha.

National African Federation of Industry and Commerce (NAFCOC), foreign traders and township retailers will be some of the many groups who will be asked to respond as part of the study

During the second phase of the study, major suppliers such as Pick n Pay, Metro Cash & Carry and Albany Bakeries will be involved in an attempt to understand their trading relationships with spaza shop owners.

“In the meanwhile, the city will intensify its business support in the townships to all traders, both local and foreign,” said Mohamed, inviting informal traders to take part in the city's training programmes for emerging entrepreneurs.

These include the business support voucher programme for start up and survivalist businesses, as well as the entrepreneurship development programme run by University of Cape Town (UCT) Graduate School of Business.

Article published courtesy of BuaNews