City investment helps small businesses to achieve greater success

Two former spaza shops are looking towards a brighter future after receiving business assistance from the City of Cape Town and partners.

The City is proud to report that programmes to formalise informal businesses in partnership with the private sector are showing significant potential. Representatives of the City’s Mayoral Committee visited one of the beneficiaries earlier today, 24 April 2019, to see the results of the partnership first-hand and to engage with small business owners.

Since benefitting from a free three-phase electrical connection that was provided by the City and taking delivery of new retail equipment that was provided by Pick n Pay as part of the retailer’s Spaza Shop Conversion Initiative, Market Ndwamba in Nyanga is reporting impressive revenue growth as well as growing the staff complement from six to 33 employees.

‘This establishment is showing what can be achieved when the whole of society works together to empower people. Part of the City’s Enterprise and Investment Department’s work includes linking small businesses to investors and support programmes, as well as advising on market needs. We encourage informal businesses who would like advice on workable growth strategies to please reach out to the City. Seeing such success in previously marginalised areas in particular is very encouraging and we are highly motivated to play our part in similar success stories in future,’ said the City’s Mayoral Committee Member for Economic Opportunities and Asset Management, Alderman James Vos.

‘We were thinking of how to expand when Pick n Pay approached us, and this is the fulfilment of a dream. We are the only branded supermarket in Nyanga. I am very excited about the benefits that this shop brings to the people who live in Nyanga. We are also employing people from Nyanga in the shop, so it’s a win-win situation,’ said Mr Khosi Liwani from Market Ndwamba.

The same assistance was also provided to another market in Gugulethu, Nozinga Market. This business has employed nine additional people and the new electricity connection provides significant potential for growth.

‘The City’s Electricity Generation and Distribution Department is happy to have been able to have played a part in the success of this business. Electricity provision is key to unlocking economic growth especially in vulnerable communities. The three-phase electricity supply that has been provided is sufficient to power large motor vehicles, refrigerators and other heavy loads that could not operate optimally on a normal single-phase domestic supply. A three-phase system is also usually more economical than an equivalent single-phase because it uses less conductor material to transmit a given amount of electrical power,’ said the City’s Mayoral Committee Member for Energy and Climate Change, Councillor Phindile Maxiti.

‘This success also reflects the benefits of the transversal approach adopted by the City. Needs and potential for the business were identified through the Enterprise and Investment Department in liaison with local community structures such as the LAGUNYA business forum. The Electricity Generation and Distribution Department was then brought into the fold to implement the infrastructure. The transversal approach allows this process to happen much more quickly and efficiently than previously,’ said the City’s Mayoral Committee Member for Urban Management, Alderman Grant Twigg.

‘This programme is proof that there is space for large and small retailers in the modern economy and shows that we can work together to unlock exciting new opportunities,’ said Pick n Pay’s Deputy Chief Executive Officer, Mr Richard van Rensburg.

Small businesses who would like to take advantage of the business assistance on offer can find relevant contact details on the Enterprise and Investment webpage.

Source: City Of Cape Town

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