Gina identified several challenges that stifle the development of the township economy. “The Reimagined Industrial Strategy (RIS) presents a multi-pronged approach to industrial development and highlights revitalisation of townships as one of the five engines of growth with a particular objective of achieving economic inclusion,” she said. She added that the little existing manufacturing that is taking place in the townships was characterised by short value chains and hardly any integration with external markets – with the majority of products sold by township enterprises exclusively produced by large companies outside township. This is promoting the economic divide between suburbs and cities and historically excluded areas such as townships, resulting in high Gini co-efficiency of 63% for SA – making it the most unequal society in the world,” said Gina. Poverty levels are relatively high in townships, estimated at 55.5% in 2022.

“The reality of the South African situation is that unemployment is exceptionally high among the youth, women, Blacks, those with lower levels of education, and those who reside in historically excluded areas such as townships. Gina said townships were at the centre of the triple crisis that South Africa is experiencing namely high unemployment, persistent poverty, and record-high levels of inequality. Gina was briefing the National Council of Provinces (NCOP) on measures to unlock and grow the full potential of the township economy. The Deputy Minister of Trade, Industry and Competition, Ms Nomalungelo Gina has assured Members of Parliament that the department is in the process of rolling out interventions that will see the rural and township economy occupying its rightful place in the mainstream economy of South Africa and contributing meaningfully in creating jobs, alleviating poverty and growing the economy.

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