05-05-25

KZN Unveils Informal Economy Masterplan to Boost Township Businesses

The Department of Economic Development, Tourism and Environmental Affairs has finalized the KZN Informal Economy Masterplan, aimed at enhancing the informal or township economy. According to MEC Musa Zondi, the government recognizes the crucial role that the township and rural economy plays in the broader economic development strategy of KwaZulu-Natal. He announced the completion of the masterplan, which serves as a blueprint to formalize, support, and elevate informal businesses through licensing systems, compliance support, and investment in shared infrastructure.



Zondi also highlighted additional initiatives designed to increase the competitiveness of township businesses. The Bulk Buying Programme, known as the Zimele Bulk Buying Scheme, is led by Ithala Development Finance Corporation and is currently being piloted in Mandeni. This initiative allows township and rural retailers to source stock affordably through grants, thereby shifting purchasing power back into local hands to ensure that everyone benefits and no one is left behind.



In addition to these efforts to boost the local economy, the department is facilitating other catalytic investments to enhance economic growth and development in small towns. Notable projects include the Prince Mangosuthu Buthelezi Mall in Empangeni, which aims to revitalize the commercial heart of the north and enhance the retail sector in the uMhlathuze Municipality. Another significant development is the KwaDukuza Precinct Value Centre, which combines retail and logistics access in a high-growth node, providing a much-needed boost to the KwaDukuza Municipality.



Furthermore, the upcoming Sappi Expansion Project, valued at R10.8 billion in Umkomaas on the South Coast, is expected to significantly enhance agro-processing, packaging, and value addition in the forestry sector. According to Zondi, these developments are part of a deliberate strategy to unlock investment in historically underserved areas, stimulating inclusive growth that bridges the rural-urban divide and addresses stagnant economic and industrial growth.