Driving Township Growth: GCRO Leads Procurement Workshop for Economic Inclusion

The Gauteng City-Region Observatory (GCRO) recently hosted a Township Procurement Workshop —a step toward making the Township Economic Development Act (TEDA) of 2022 a reality. The event brought together key stakeholders, including representatives from the Gauteng Department of Economic Development and the Provincial Treasury, to explore practical steps for empowering township-based enterprises. The workshop served as a collaborative platform to share progress on defining what constitutes a township and to identify opportunities for the Gauteng Provincial Government to procure goods and services from township businesses. This initiative underscores the province’s commitment to fostering inclusive economic growth and creating sustainable markets for local enterprises. By aligning procurement strategies with the objectives of the Act, the provincial government seeks to unlock economic potential within townships, stimulate entrepreneurship, and drive job creation across Gauteng.

Why It Matters

Townships are home to vibrant entrepreneurs, yet many remain excluded from mainstream markets. By aligning procurement strategies with TEDA, Gauteng aims to:

* Empower local businesses

* Stimulate entrepreneurship

* Create jobs and inclusive growth

Leadership in Action

The workshop opening featured leadership from GCRO, the Department of Economic Development, and Provincial Treasury, who set the strategic tone and participated in discussions. GCRO’s Executive Director Rashid Seedat, the Head of Department for Economic Motlatjo B. Moholwa, and Chief Director from the Provincial Treasury Thabang Tsie established the tone with open discussions on:

* Procurement reform

* Data-driven decision-making

* Monitoring spending effectively

Defining "Township"

What exactly is a township? The rationale for the session is that TEDA defines a township as follows:

"township" means an area contemplated in section 6, and includes an urban, peri-urban or rural living area which—

(a) at any time from the late 19th century until 27 April 1994, was reserved for Black, Coloured, or Indian people; or

(b) has been developed for historically disadvantaged persons after 27 April 1994; or

(c) has become predominantly occupied by historically disadvantaged people; and

(d) is currently an economically deprived area

Experts debated this, guided by TEDA’s definition and enriched by:

* Christian Hamann’s GIS mapping tool for spatial targeting

* Shamsunisaa Miles-Timotheus’ Quality of Life Index insights, revealing stark inequalities within wards

What Can We Buy Locally?

Procurement data shows huge potential for township businesses to supply government needs.

* Ebrahim-Khalil Hassen highlighted products already within reach

* Laven Naidoo mapped registered suppliers against township areas

* Jason F. Bell connected procurement to broader industrial development strategies

Key Takeaways

The workshop resolved to:

*Finalize a practical definition of “township”

*Apply data science to procurement analysis

*Assess feasibility of a Gauteng urban space economy study