Foreign-owned businesses hampering rural growth – dti

2013-10-10 13:00

Foreigners are hurting entrepreneurship in rural areas and townships, Deputy Trade and Industry (dti) Minister Elizabeth Thabethe has said.

“The scourge of South Africans in townships selling and renting their businesses to foreigners unfortunately does not assist us as government in our efforts to support and grow these informal businesses,” she said today at the national small, medium and micro enterprises (SMMEs) summit in White River, Mpumalanga.

“You still find many spaza shops with African names, but when you go in to buy you find your Mohammeds and most of them are not even registered,” she said.

Many foreigners had been renting back rooms to run their businesses for at least 10 years.

“To step in, the dti has proposed the development of the informal business strategy which is envisaged to go a long way in advancing possible intervention programmes to assist these businesses. We call on individuals to come to us so we can assist them,” Thabethe said.

Mpumalanga Economic Development, Environment and Tourism MEC Pinky Phosa encouraged media to report on problems hampering the growth of SMMEs, so that they could be addressed.

Phosa said the dti, in conjunction with other departments, was working on delivering high-impact programmes to enhance the growth of the SMME sector.

“There is also a need to relook and resuscitate the old industrial parks and business hives to provide for suitable business infrastructure for small businesses,” she said.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24


Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.