Latest news with #R500m
TimesLIVE
6 days ago
- General
- TimesLIVE
R500m hostel project half done but poor safety and overcrowding persist
Gauteng human settlements MEC Tasneem Motara says major refurbishment work on Johannesburg's inner-city hostels is halfway complete, with visible changes for residents but challenges such as overcrowding and poor safety remain. Motara and Johannesburg MMC for human settlements Mlungisi Mabaso visited the George Goch, MBA, Murray & Roberts, Jeppe and Denver hostels on Wednesday to monitor progress under the 'Siyeza Nakuwe' service delivery campaign. The three-year, R500m project targets six hostels with work on the final one, LTA Hostel, expected to start within two months. The project includes structural repairs, sewer and water line upgrades, new electrical systems, waterproofing, paving, window replacement, tiling, painting and plumbing. Motara said this was informed by condition assessments conducted three years ago to determine what was needed to make the hostels habitable. 'These hostels are really old and overcrowded. They were built for a specific purpose that no longer exists. Our responsibility is not just because we own them, but from a human rights and dignity perspective,' Motara said. 'We want to redevelop them into family units in future, but that will require more funding.' She described the state of the hostels before the intervention as 'appalling' and said the department began with daily cleaning before tackling major repairs. 'We should not go beyond May next year. Some hostels will have completed blocks by the end of August,' she said, adding that bad weather could cause minor delays. Mabaso said the city's hostel redevelopment strategy recently approved by council aims to partner the private sector for future phases.
The Citizen
05-08-2025
- Business
- The Citizen
Cheers to township retailers
The South African Breweries (SAB) has poured over R500m into local retail empowerment since 2021, with over 32 000 liquor retailers trained and accredited through its Responsible Trading Programme (RTP). At a ceremony held at SAB's Bryanston headquarters on August 4, the company celebrated standout retailers across the country during its Cheers to Retailers event, marking 130 years of operations. Read more: Sandton City celebrates 50 years with a retail festival The gathering honoured the small businesses that form the heart of South Africa's beer economy. 'These entrepreneurs are not just selling beer, they are driving jobs, local development, and social cohesion,' said SAB CEO Richard Rivett-Carnac. He added that they are the real engine behind their growth. Gauteng chief director for Economic Development, Crezelda Venter, delivered a keynote address applauding the resilience and innovation of local traders. 'Retailers are reshaping the economy from the ground up.' With 95% of SAB's inputs sourced locally, the company continues to roll out infrastructure upgrades, compliance support, and business development initiatives through its SAB Sharp platform. Retailer Lungile Gama, who's partnered with SAB for 33 years, was among those honoured. 'What started as a small tavern is now a compliant and sustainable business. I now employ people from my community,' Gama said. Follow us on our Whatsapp channel, Facebook, X, Instagram and TikTok for the latest updates and inspiration!
IOL News
16-07-2025
- Business
- IOL News
Postbank asks Parliament to push for R1. 7bn funding
Postbank has only been separated from the Post Office operations and systems which are legacy systems not for banking. Image: Supplied Postbank CEO Nikki Mbengashe on Wednesday revealed the urgent need for R1.7 billion to maintain capital adequacy, following a challenging 18 months in which the bank has already expended more than R500 million of its own revenue to sustain operations. Mbengashe underscored the bank's necessity for R600m for direct operations, with the remainder serving as a guarantee in alignment with the South African Reserve Bank's (Sarb) regulatory requirements. "With the money we have made, we have spent more than R500m in the last 18 months to two years. We've been able to establish a new call centre, we've got visibility, we are partnering with retailers, we have built in new systems," she said. "We need a little bit more to build on that. The R1.7bn fulfills the sub-regulatory requirements to ensure that we keep that amount to qualify for capital adequacy." 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Next Stay Close ✕ Discussing the broader role of Postbank, Mbengashe highlighted the continued exclusion within South Africa's banking system, with more than 7 million individuals still unbanked. Mbengashe noted the importance of upgrading legacy systems inherited from Post Office operations to ensure compliance and enhance banking capabilities. "We must not underestimate the impact of having a State bank and commercial banks. It's never one or the other, mandates are different. If we can collaborate on the closed Post Office infrastructure, absolutely we can. We are still to an extent using the Post Offices, but they do need to upgrade because we are regulated and need to be compliant, and therefore, there needs to certain compliance matters," she said. "Postbank has only been separated from the Post Office operations and systems which are legacy systems not for banking. We are on a journey to build proper banking systems. We have already invested R500m. That is why we are here asking for more money so that we can digitise and get better at what we are doing." Addressing the issue of housing loans, Mbengashe pointed out a critical gap in the current system—while banks may offer home loans, they often do not meet all applicants' needs. "Banks can currently give you a home loan but they never qualify or close the 100% gap. What do we do with the people who only qualify but still need a certain amount? The house they are targeting needs to close a gap of the 10% or 20%, someone needs to close that 20% gap, we absolutely agreed that should be serviced by the Postbank," she said. "The Postbank has the service, the capability, the compliance and the auditability to do that. That's why we recognised that Sassa should come to us. A customer has an option in terms of where you bank. Therefore, we are not mandating and forcing anyone. We offer something that differentiates us from the private sector." Postbank Administrator, Khaya Ngema, expressed strong optimism about the bank's potential impact on economic growth and inclusion, saying it was fundamentally viable with serious growth potential and with smart investments. "A successful Postbank is bursting to make an impact on economic growth and inclusion as it will unlock the currently poorly-served micro-businesses and unlock communities and sectors that are marginalised," Ngema said. "A successful Postbank will have a good impact on government delivery systems, particularly in supporting modernisation and efficiency of government payment systems. This is not taking from commercial banks." BUSINESS REPORT
The Citizen
02-07-2025
- Business
- The Citizen
Major funding lifeline for township traders
Local spaza shop owners are urged to apply for the R500m Spaza Shop Support Fund, a national initiative aimed at strengthening township convenience stores by providing funding, training, and business development support. This is according to Mogale City Local Municipality (MCLM) communications officer, Refilwe Mahlangu. She said a recent information session was held at Centenary Hall, where the city's Local Economic Development Section and the West Rand District Municipality partnered with the Department of Small Business Development, the Department of Trade, Industry and Competition, the Small Enterprise Development Finance Agency (SEFA), and the National Empowerment Fund (NEF) to educate entrepreneurs on how to access the Spaza Shop Support Fund. Key stakeholders who attended the session included Executive Mayor Lucky Sele, representatives from the South African Revenue Services (SARS), West Rand District Municipality representative Sivuyile Boyce and Gauteng Department of Economic Development Head Mpho Nawa. 'Launched by President Cyril Ramaphosa in November last year as part of the government's response to the foodborne illness crisis, the fund supports spaza shops through financial assistance and training, with a strong emphasis on food safety, business sustainability and market competitiveness,' said Mahlangu. She added that the support available will include: • Stock purchases via approved partners • Infrastructure upgrades (eg, fridges, shelves, security) • Operational tools and systems • Training: Point of Sale device use, business management, digital skills, food safety, and more However, Mahlangu emphasised that people who qualify for this fund are South African citizens operating spaza shops in townships or rural areas. 'Shops must be registered with the local municipality. For funding above R80 000, registration with the Companies and Intellectual Property Commission and SARS is required. Shops must meet compliance standards and be owner-managed. Up to R100 000 in support is available for qualifying businesses,' Mahlangu continued. The details for more information and applications on this fund are below: • Contact 011 305 8080 • Visit the website • In person: At your local municipality, NEF or SEFA office At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
03-06-2025
- Business
- IOL News
Spaza shop fund under fire: Questions over R500m initiative
The R500m Fund, launched to bolster South African-owned spaza shops in townships and rural areas with stock, infrastructure upgrades, and training, has come under intense scrutiny. Image: Itumeleng English/Independent Newspapers A VIRTUAL briefing by the Department of Small Business Development (DSBD) on the progress of the R500 million Spaza Shop Support Fund descended into chaos last week, with MPs from across the political spectrum lambasting officials for 'lacklustre' responses, unresolved corruption risks, and a controversial 'middlemen' supply model that critics warned could hijack the initiative. The Fund, launched to bolster South African-owned spaza shops in townships and rural areas with stock, infrastructure upgrades, and training, was under intense scrutiny. Only 3 000 to 5 000 applications have been received — a fraction of the estimated 200 000 spaza shops nationwide — raising concerns about exclusion, bureaucratic hurdles, and whether foreign-owned shops were being sidelined. The most explosive revelations centred around the Fund's reliance on three unnamed Delivery Channel Partners (DCPs), private wholesalers tasked with supplying spaza shops. Opposition MPs accused the state of creating a 'monopoly' for connected insiders. 'Why are these DCPs not listed in the presentation? Who are they? What are their markups? This is a middlemen scheme!' charged the DA's Nico Pienaar, demanding the Gazette records detailing their selection. FF+'s Henk van den Berg echoed concerns: 'Do spaza shops have to buy from these DCPs? Who pays them, the Fund or the shop owners?' DSBD Deputy Director-General Qinisile Delwa sidestepped specifics, stating only that DCPs were 'vital intermediaries'. Lwandiso Makupula from the Small Enterprise Development and Finance Agency (Sefda) later admitted that 58% of spaza shops are Somali-owned and 25% Ethiopian-owned, leaving just 8% eligible for the Fund. But MPs were unmoved. 'This is a recipe for fronting. Cartels will use locals as fronts to access funds,' warned the ANC's Peter Mabilo. Pienaar slammed the Fund's 'reckless' exemption of spaza shops from immediate Companies and Intellectual Property Commission (CIPC) and tax registration, calling it a 'free pass for abuse'. 'We're bleeding taxpayers, yet here's a state fund allowing six months' grace before registration. This is anti-formalisation and anti-growth,' he said. DSBD offered no justification, deepening suspicions of lax oversight. With Gauteng dominating applications, rural provinces risk being left behind. 'Your roadshows are failing. Rural spaza shops are lifelines, why aren't they prioritised?' asked chairperson Sonja Boshoff (DA). The ANC's Moses Modise blasted the DSBD's 'pathetic' outreach: 'Where are the community radio ads? The local newspaper campaigns?' Municipal licensing emerged as another crisis point. Many townships lacked digital systems, leaving spaza shops in limbo. 'Some municipalities don't even have licensing capacity. Is DSBD engaging the South African Local Government Association (Salga)?' Boshoff pressed. Delwa conceded that only the Northern Cape was piloting e-licensing, while KwaZulu-Natal and the Western Cape lead. Despite Makupula's assurance that 'misused grants convert to loans', MPs remained sceptical. 'Where are the anti-corruption measures? Who monitors officials?' Boshoff asked. The MK Party's Sarah Mokoena highlighted registration chaos: 'The online system crashes constantly. Shop owners think they're registered when they're not.'
