Deputy Speaker, the development and promotion of productive economic activities in townships and rural villages are at the heart of the government's efforts to advance economic inclusion, local empowerment, and job creation.
We need to transform our townships and villages from traditionally being apartheid-designed sources of cheap labour and consumption into thriving productive investment and economic hubs.
The real and meaningful transformation will occur when enterprise development and participation opportunities are deliberately created to benefit local communities living in these townships and villages.
In order to reverse the legacy of the apartheid space economy, the government has a responsibility to implement a set of policies and regulatory interventions to direct infrastructure investment as well as financial, technical, and market access facilitation that benefits enterprises that are located in townships and villages.
There is no doubt that economic activities in townships and rural areas should be supported by the effective implementation of regulations and municipal bylaws consistent with our constitutional and legal framework. All businesses, whether local or foreign-owned, must be subjected to applicable regulations and bylaws.
Effective economic regulation in the township and rural areas will assist in curbing and minimising the problem of counterfeit goods that are sold in our country through illegal businesses.
More importantly, the impact of regulation must result in a fair and competitive environment for enterprises that are operating in the township and rural villages to prevent the abuse of dominance by few monopolies. We have
to find ways to open up markets so that new enterprises can compete fairly.
The Competition Amendment Act promulgated this year focuses on opening markets where concentration and the behaviour of dominant firms are harmful to the creation of jobs and the growth of small and medium businesses in all sectors across the economy.
Although it is imperative to regulate the microeconomy, regulation alone is not a total solution to address the challenges of economic exclusion and structural barriers of entry into the mainstream economy for the township and rural enterprises.
Regulations must be accompanied by extensive enterprise development programmes that are supported by government and the private sector to develop skills, and integrate small businesses in townships and villages into major procurement value chains in government and private sector markets.
With this realisation, the government is implementing various programmes and targeted policies to intervene so that it stimulates and supports the development of township and rural enterprises.
Implementing a special dispensation or set-asides in the awarding of medium- , and long-term contracts to small businesses, co-operatives as well as township and village enterprises to allow for a period of incubation and other support to help reduce failure rates is one important thing that we must do.
Establishing a township and village economy fund to support the productive activities and the development of industrial parks, business centres and incubation centres in those areas is another thing that the government must pursue.
The government must also pursue formalising township and village-based enterprises through an active campaign by provincial and local governments that promote the benefits of formalisation, addressing illegal trading through better regulation and implementation of bylaws by
municipalities, increasing the incubation network in rural areas and townships as part of government's commitment to grow rural and township enterprises.
We must continue to invest in key infrastructure and technology innovations to facilitate the ease of doing business in our townships and rural villages. Thank you very much House Chairperson. [Applause.]