Johannesburg: The Deputy Minister of Trade, Industry and Competition, Mr. Zuko Godlimpi, has emphasized the significance of the 2026 Rural and Township Economy Report, launched on September 3, 2026, in Johannesburg. The report is seen as crucial for South Africa's spatial transformation and economic inclusion.
According to African Press Organization, Godlimpi highlighted various challenges faced by informal businesses, such as significant procurement hurdles, including higher prices and limited access to formal distribution channels. Consumers in townships and rural areas also encounter higher effective prices due to limited product variety and quality. Furthermore, high rental costs, exclusivity arrangements, and preferences for national brands continue to exclude them from the retail sector. Weak compliance and infrastructure further hinder their participation in e-commerce, while regulatory barriers, such as permits and tax compliance, inhibit formalization.
Godlimpi pointed out the decline of general dealers in villages, often operated by foreign nationals, and emphasized the government's goal to address South Africa's economic problems for all citizens, not just the metropolitan sector. He also highlighted the role of innovation and technology in rural economies and underscored the need for better supply chain management and point-of-sale technology to enhance customer experience.
The removal of restrictions on African mobility in urban centers has complicated the competitiveness of township enterprises. Godlimpi identified stock availability and the convenience of point-of-sale technology as key challenges. He noted that consumers are less likely to return if items are out of stock and prefer seamless transactions akin to those in major retailers.
Structural changes and partnerships are vital for improving local enterprises' competitiveness, Godlimpi stated. The task is to transform the economy while growing it, expanding productive capacity while broadening participation, and creating a globally competitive economy with widely shared growth benefits.
Godlimpi noted the necessity of industrial policy, as markets alone may not build the productive capabilities required for long-term development. He explained that industrial policy should support the development of productive and competitive firms, while competition policy should ensure markets remain open for new firms to emerge and grow. Industrial incentives should encourage investment and capability development.
Godlimpi stressed that competition law should prevent firms from using market power to exclude competitors. He further stated that transformation policy should broaden ownership and participation, while competition policy should address structural barriers preventing transformed businesses from succeeding.
