BOSA calls for strict oversight of new R500 million township economy fund

17 November 2024

Build One South Africa (BOSA) Build One South Africa (BOSA) welcomes any initiative aimed at empowering township economies, which are vital hubs of innovation, entrepreneurship, and community livelihoods.

However, President Ramaphosa’s announcement of a R500 million fund to support township economies raises serious concerns about accountability, transparency, and the risk of mismanagement. We are today calling for the Minister of Trade, Industry and Competition, and the Minister of Small Business Development, to appear before Parliament’s Standing Committee on Appropriations to explain where this money is coming from, and how it will be spent.

BOSA has consistently championed the development of township economies as a critical driver of inclusive growth. But we know from experience that in South Africa, money allocated for good intentions often fails to reach the intended beneficiaries. This cannot be another slush fund for politically connected individuals or a vehicle for corruption.

Government ministers and officials responsible for this fund must come to Parliament to provide a clear and detailed plan for its implementation, oversight, and auditing. Money in government doesn’t - and cannot - just get appropriated without scrutiny.

Key Questions Government Must Answer:

Who will manage the fund? Will it be administered by an independent body or government departments?

What are the eligibility criteria? How will beneficiaries be identified to ensure fairness and inclusivity?

How will the success of the fund be measured? What metrics will be used to track its impact on township economies?

What measures are in place to prevent corruption?

Will there be quarterly reporting? Transparency demands regular updates to Parliament and the public on fund usage.

BOSA calls for a multi-stakeholder oversight committee, including representatives from civil society, business, and independent auditors, to oversee the disbursement and management of the fund. In addition, we urge President Cyril Ramaphosa to ensure that this fund does not become yet another unfulfilled promise or, worse, a vehicle for graft.

Finally, we reiterate our call for townships to be declared Special Economic Zones (SEZ). Not only will more SEZs assist in the job market, they will provide a unique opportunity to undo one of the major legacies of apartheid that persists today: the spatial economic exclusion of the majority of South Africa’s population through the policy of separate and unequal development. This legacy is still visible in townships across the country, where economic opportunities remain limited, and poverty and unemployment are rife.

Township entrepreneurs are the backbone of local economies, creating jobs, providing services, and driving innovation in some of the most underserved communities in the country.

BOSA remains committed to fighting for their empowerment, ensuring that every cent of public money allocated to uplift them is used responsibly and effectively.

Issued by Roger Solomons, BOSA Spokesperson, 17 November 2024