During the country’s previous State Of the Nation Addresses (SONA 2021), much emphasis has been on job creation and local economic growth.
In his 2020 and 2021 SONA’s respectively, President Cyril Ramaphosa alluded to the plans of creating pathways to entrepreneurship and mechanisms of developing local economies.
In the North West, many shop owners in small villages have closed down and are unable to support themselves. They are pleading for support from the government.
The picture of local economy in different villages is mostly coloured by family businesses, such as tuck shops. With different general dealerships in various villages, this has always been the norm.
The picture is now bleak, as many are no longer operational.
Instead, shops owned by foreign nationals, are dominant in rural and urban areas.
58-year old Oupa Motlhala, from Magogwe village near Mahikeng, is a former shop owner. He had a thriving tuck shop for 43-years. Motlhala says after closing for a while, he is leasing the shop to foreign nationals.
“The shop did not work very well so we decided to close the shops after that then came Bangladeshis and the Pakistanis, so we rented the shop to them. So now the people saw that they run the shop very cheaply and they started to buy from them.”
Rand is now no longer circulating within the community
Community members say the rand is now no longer circulating within the community. The closure of shops, owned by locals, has also increased spending, as community members must now travel to town for groceries.
“If there was a funding that could help us to buy stock, to do something with those shops we can actually end this high rate of unemployment. So the most important thing is that we lack funding or to get access to that kind of funds,” says a community member.
An economist suggests that SONA should at least detail how small, micro and medium enterprises (SMMEs ) will get assistance & support.
Makwe Masilela from Makwe Fund Managers says SMME’s are the main drivers of job creation.
“These kinds of businesses are the main job creators. So it goes without saying that that kind of business definitely requires some serious support. Come SONA on Thursday, one will expect the President to indicate exactly what it is that will be doing for that particular sector so that it gets to be revived and we also know that even in other areas we had some small industries. Those industries as well need to be lifted up again so that they go back to their former glory,” says Masilela.
Small Enterprise Development Agency (SEDA) in the North West, says it has so far supported over 200 spaza shops. The agency also supports small businesses through the newly launched Township and Rural Enterprise Program. Provincial manager for SEDA in the North West Neville Maimane elaborates.
“The department has introduced a program called the Township and Rural Enterprise Programme with a view and intention of creating the platform, resources, and funding specifically meant to assist and support deserving SMME’s in the retail and service sectors. Categories listed for this program, space shops, chesanyama, fruit and vegetables, and personal care.”
President Cyril Ramaphosa is expected to give his 2022 state of the nation address on Thursday.
ANNOUNCEMENT I 2022 State of the Nation Address[SONA] will be held at the Cape Town City Hall
President Cyril Ramaphosa will deliver the 2022 State of the Nation Address on Thursday, 10 February 2022, at 7 pm. Here is why SONA Matters: #SONA2022 pic.twitter.com/LkjEvupneQ
— @SAgovnews (@SAgovnews) February 7, 2022
