By: Noxolo Majavu
Township SMEs can expect more growth through the Gauteng Department of Economic Development (GDED) and Takealot initiative, which is set to boost small businesses through its platform with access to over four million active shoppers. Amid growing speculation that South Africa’s largest e-commerce retailer, will take a knock due to Amazon’s imminent launch in the country, the department formed the partnership to create jobs and support small businesses owned by historically disadvantaged people in underserved communities across South Africa.
The new initiative will help ensure that SMEs streamline operations, with Takealot providing tools for a smoother route to market. However, Discovery Bank’s Trend 24 recently revealed that Amazon was the third most visited e-commerce platform in the country, where rich consumers spent their money. The founder of Maki Atchar, Maki Malakoane, who agro-processes atchaar and sauces mixed with herbs and fruits, is one of the small businesses that is participating in the project.
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She is looking forward to developing her enterprise. “It’s a blessing to have GDED and Takealot Group reach out to small businesses. This presents a great chance to expand our e-commerce business and tap into a broader customer base in South Africa,” she told Vutivi News. While Malakoane admitted that Amazon’s launch presented an alternative e-commerce platform, she said that most of the SMEs in townships supported Takealot because of its beneficial initiatives. “Takealot has been a reliable, offering great service to consumers and that is good enough to be loyal to it,” she said.
Takealot Group CEO Fred Zietsman conceded that Amazon’s South African launch meant that there would be more competition for his company. “It’s not a smash-and-grab. It’s not a fast-market penetration strategy. It’s a slow and capability building, so it’s a war, not a battle, and it’s a long-term play,” Zietsman explained. He added the company would be announcing some exciting initiatives in the next six months, however, Zietsman highlighted that these plans had been strategised before the Amazon announcement.
The initiative aims to create 20,000 jobs by 2028 and includes bringing small businesses in the informal settlements and hostels into the mainstream economy. GDED MEC Tasneem Motara’s spokesperson Sebastian Langa confirmed to Vutivi News that the initiative had a budget R150-million.
Langa further explained that the GDED and Takealot programme, which consisted of six other programmes, would be rolled out across Soweto, Tembisa, Alexandra, Katlehong, Mamelodi, Sebokeng, Soshanguve, Kagiso, Hammanskraal, Etwatwa, Ivory Park, Diepsloot, Vosloorus, Tsakane, Daveyton, Winterveld, Evaton, Ga-Rankuwa, Kwa-Thema and Mabopane.
“The township economy presents a fertile ground for entrepreneurship and small business development. Many individuals in townships have entrepreneurial aspirations and can benefit from support, training, and access to resources. By empowering local entrepreneurs and small business owners, there is an opportunity to stimulate economic growth, foster innovation, and create sustainable businesses within the township communities,” said Langa.
Zietsman asserted that out of every R100 spent on the Takealot platform, R82 stayed in the South African economy. “For more than a decade the Takealot Group (comprising Takealot.com, MrD, and Superbalist) has been committed to driving economic recovery by supporting local small businesses and manufacturers, and their platforms help the small businesses they partner with to grow. Takealot provides real empowerment through access to over four million active shoppers and seamless logistics with over 100 pickup points nationwide,” he added. Meanwhile, Langa maintained that channeling resources and investments into the township economy could have a multiplier effect on the local economies.
