By Nangamso Mabindla
11 September 2007

IMPROVED business confidence, thriving entrepreneurs, revived business structures and growth in tourism are just some of the indicators of the positive impact of the Urban Renewal Programme in Mdantsane.

This was said by Buffalo City Executive Mayor Zintle Peter at the Urban Renewal Tripartite Co-operation signing ceremony involving Buffalo City, Nelson Mandela Bay and the Sol Plaatje municipalities last week. The ceremony was held in Galeshewe, part of the Sol Plaatje municipality, in the Northern Cape.

The agreement aims to assist the three local authorities - who each have an urban renewal node - to share best practice in the delivery of basic services within the three urban renewal nodes of the municipal area.

Talking about the progress and challenges in Mdantsane since the programme started in 2001, Peter said the City had worked hard to engage the people of the township as part of the annual Integrated Development Plan to ensure that the City's budget met the needs of the residents.

"We have a vision that applies equally to the whole of Buffalo City; that we want to be a people centered place of opportunity where the basic needs of all are met in a safe, healthy and sustainable environment. We must ask ourselves what it means for Mdantsane to be a place where people can enjoy opportunities to live productive, safe and fulfilled lives," said Peter

For Mdantsane's people to experience being part of the city's vision they needed to have employment rather than depending on the state or relatives for welfare support. The City's IDP estimates the rate of unemployment at 33 percent.

Peter said the city's economic development strategies and programmes in Mdantsane were geared towards creating jobs. Some of the areas the city has been working on included business development, trade and investment promotion, tourism development and urban agriculture.

Talking about business development, Peter said that the township has always been a hub of Small Medium and Micro Enterprise (SMME) development, with enterprises in the wholesale, retail and personal service sectors.

"There is a need to diversify entrepreneurial activity in Mdantsane. Diversification would ensure that SMMEs take full advantage of sector opportunities," she said

However, despite being a hub for SMMEs a recent business survey on the township revealed that about 70 percent of them were not registered. The survey revealed that the majority of those registered were Close Corporations.

"Included in the 70 percent unregistered businesses are sole traders and community based projects. Lack of affordable and appropriate business premises in Mdantsane remains one of the key challenges confirmed by the findings of this research. Only 24 percent of businesses operate from an appropriate trading environment." The survey put the figure for youth employment at 39 percent.

In response to the challenges facing the township, the city established the One Stop Centre which aims to work closely with SMMEs in Mdantsane. The centre assisted SMMEs in the areas of cooperative development, business registrations, business plan developments and other important aspects.

Another area that has seen improvement in the township was trade and investment. Peter said that since the inception of the programme the private sector has taken a keen interest in investing in the area.

"Over the past couple of years, the Fort Jackson Industrial area has seen more investors come in, with co-operation from the Eastern Cape Development Corporation with affordable rates. Those range from furniture manufacturing to those that supply DaimlerChrysler," said Peter.

Another proof of investor confidence in Mdantsane was the development of a multi-million rand shopping complex in NU 9. The mall will be home to 110 shops including Truworths, Cashbuild, Foschini, Mr Price, Morkels, Romans Pizza, Pep Stores, and Edgars. The Billion Group, the developers of the mall, expect the development to create 1600 jobs, 900 of which will be permanent. The mall is expected to open towards the end of the year.

Other areas the township was showing progress in were tourism development and urban agriculture.

"All our positive steps forward do not mean that we could not have done more or better or faster. We therefore look forward to the mutual learning and cross-pollination of ideas that will flow from the formal co-operation that we are establishing today," she said.

"We know we have a lot to learn, and we look forward to sharing what we have learnt so that together we can find new and better ways to build the better life that our people legitimately expect."