South African Business 2016 edition

FOCUS Khayelitsha –

FOCUS Khayelitsha – the power of township buying power There is a big drive to empower the township economy nationwide. In Cape Town, The Khayelitsha Development Forum (KDF) is a voluntary organisation that works to efficiently mobilise community development initiatives through extensive public participation, empowerment programmes, resources mobilisation and effective coordination. Lesley Julies, Marketing Manager of the KDF, shared his Forum’s vision for Khayelitsha. What role does the Khayelitsha Development Forum play within the Khayelitsha community? Our strong point within Khayelitsha is that we have the buy-in of the community and the community are dependable stakeholders in terms of issues of safety, health, job creation or economic development. We defi nitely need assistance to develop and grow our township economy, but whoever comes in will need the buy-in of the community. What potential is out there within Khayelitsha? Most of the community fi nds itse lf in a needy situation, and when you are needy there is always plenty of potential. Renewable energy is a possibility of course, and there was a Japanese company that visited us to investigate the potential for recycling as well as wind and solar systems, because there is room for such a development in the township. There are vast other business opportunities, including quite a lot that are not currently existent within Khayelitsha but that you will fi nd outside Khayelitsha, and sadly this paints the wrong picture. We believe that there is room for providing everything within Khayelitsha, but at the moment there is very little. The seaside in affl uent areas is an economic stimulant, but within our area it doesn’t play the same role – it is just sea and just a place that people can go during summer and swim a bit, but that’s it. It doesn’t have the economic spinoffs that many other coastlines offer. Another concern is that sport doesn’t play a meaningful role in Khayelitsha, as it is very underdeveloped. We have to explore everything possible that can turn Khayelitsha around. One of the problems is that any money-spinning ventures within Khayelitsha do not fully benefi t the people of Khayelitsha. They mostly just get the crumbs. Money that is generated within Khayelitsha generally does not stay in Khayelitsha – it fl ows out. The outlet is much much bigger than the inlet. What is your strategy for turning that around? We need money to come into the township, but it’s essential that the attitude of the community is correct. If we start creating a trend that says there can be quality within Khayelitsha and this is the way that we can spinoff positively for Khayelitsha, then it might just be the start of a good trend. At present people are caught in a situation that tells them the situation is the other way around. To change that we have to start at some point, even if it is so small a start, but we need to say to ourselves that we can do it. What is the benefit for the investor or business that invests in Khayelitsha? In a nutshell, money might be cheaper in Khayelitsha than elsewhere! You will be at the doorstep of a huge market, lower overheads and even the cost to employ staff would be vastly different. If your business is located elsewhere then a Khayelitsha resident must be SOUTH AFRICAN BUSINESS 2016 190

FOCUS informed about you and they must then make an effort get to your product. However, a Khayelitsha resident is on the doorstep of your product. Randwise, the rates are defi nitely much cheaper in Khayelitsha, as are the overheads, and there are also a number of dti subsidies that businesses and investors could qualify apply for, and land will be cheaper than any other place - and there is a lot of land available and at times properties available. What businesses would flourish in Khayelitsha? Currently there is a big Boxer supermarket in Khayelitsha, and they do well, so retailers will do well here, and anything from fuel to vehicles. It is a fast-growing market, though, so food in particular has a huge demand, as well as for building materials, health products and medical assistance. After a certain time all doctors in Khayelitsha are closed, and there are only a few ambulances, so after hours medical assistance and services also offer a large potential market. it’s more than just the market – the real potential is the fact that anything that can be mass-produced can be done in Khayelitsha and then distributed throughout Khayelitsha as well as ‘exported’ to other suburbs. You know, it amazes me that a lot of people who are eating meat are in Khayelitsha, yet there are no abattoirs in Khayelitsha, and no fi sh factories. This is an old mindset: you’re comfortable with what works for you, but you are not doing anything to explore better avenues of bigger opportunities to grow your market. Why would you have milling companies elsewhere when maize is consumed mostly in Khayelitsha? Why have a big bakery outside Khayelitsha when the biggest market for bread is in Khayelitsha? So then all that bread you must bring into Khayelitsha. The same goes for clothes and stationery and everything that people buy. There is a need for these products in Khayelitsha, and this will benefi t the community greatly… but it will also be a very lucrative market for businesses. 191 SOUTH AFRICAN BUSINESS 2016