 Alex set
to make its business mark
Step-by-step Alexandra is changing, with the City working hard to
provide housing and infrastructure
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Housing is being provided and hostels upgraded |
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Skills
training at the
Business Place |
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Alexandra
has a large informal auto based industry employing a substantial
number of people |
Efforts by the City of Johannesburg to develop the township of
Alexandra are primarily focused on providing housing and basic
infrastructure to residents.
These efforts, however, need to be complemented by initiatives to
provide residents with means to sustain themselves economically, says
Darlene Louw, project manager for Alexandra Renewal Project (ARP).
According to Louw the current projects have succeeded in improving the
lives of many Alexandra residents. Since the February 2001 launch of
the housing projects, many previously destitute people have been given
a new lease on life.
Over the past eight years, the ARP, a project aimed at addressing
social and economic challenges in Alexandra, has faced some daunting
challenges, but it has also scored many victories.
Housing
Hundreds of houses have been built for people who were in desperate
need for safe and sanitary accommodation in the form of new housing
development initiatives and refurbished hostels. In addition, a
school, a library, a business support centre, parks and a clinic,
among other achievements, have been completed.
However, the large number of people currently living in Alex has
caused some stumbling blocks. ARP estimates there are 380 000 people
living in greater Alexandra. This figure is now believed to be closer
to 500 000, with people living not only in houses, flats and hostel
complexes, but also in thousands of informally constructed shacks, and
in adjacent factories and office buildings appropriated for living
quarters.
There are also huge numbers of immigrants – from within South Africa
and outside – moving into the area because of Alex’s proximity to the
Johannesburg central business district and Sandton, one of
Johannesburg’s prime economic and business centres.
Because of this influx, unemployment has increased resulting in a rise
in crime. The ARP estimates that at the start of the project, only a
third of the households in Alex had a person working in the formal
economy. This number however is rapidly dropping with the increase of
informal individual entrepreneurial ventures. Jobs
There is however hope on Alexandra’s horizon. Since the inception
of the project, a huge number of township residents have found
employment on the ARP-related construction sites. A large number of
residents have also gone solo, establishing small businesses in the
area. The ARP recognises that the long-term sustainability of the
township depends on increasing household incomes and reducing
unemployment. A unit within the ARP, the Local Economic Development
Unit, is tasked with creating a sound and stable economic environment
in Alex.
The Unit is tasked with facilitating job creation within Alexandra and
the wider regional economy; promoting the creation and growth of small
enterprises owned and managed by Alexandra entrepreneurs; and
facilitating the development of skills to enable Alexandra residents
to participate in the economy.
According to Louw the ARP’s economic development section has recently
focused its efforts on practical ways of generating employment.
She says the ARP is running seven initiatives, namely:
- a small business development programme;
- direct construction opportunities;
- training people to enter the construction industry;
- employment information centre;
- an auto cluster;
- a tourism cluster; and
- a retail cluster.
Working in partnership with the Business Place, a Section 21
company that provides a range of relevant services to aspirant and
existing small and micro entrepreneurs, the ARP runs an advisory and
skills development office targeting small businesses based in Alex.
In the past year, 131 small businesses were given support across a
wide spectrum of economic sectors. A survey revealed that 92 small
enterprises collectively employed 414 people during 2007/08.
Construction has become a major role player in not only offering
accommodation, but also employment. Over the course of 2007/08, the M2
hostel upgrades, the Extension 7 housing project, construction of the
Vasco da Gama Bridge, the construction of pedestrian bridges and the
Marlboro Gardens school grounds, among others, provided 2 730
construction jobs. Of the 2 730 jobs, 1 278 were local opportunities.
Skills development
The ARP has many close ties with various training companies who are
enrolling Alex residents. So far, 252 people have received training in
construction-related skills and placed within the private sector,
according to Louw.
In addition to labour-related training, the ARP funds a number of
centres that focus on preparing the youth for gainful employment. Job
searching skills, life skills, basic computer training, and career
guidance are all readily available to residents. Over 800 youth
participated in courses during 2007/08, with147 of these trainees
placed in employment in the retail sector.
The auto industry has proven to be a lucrative business in Alex. The
township has a large informal auto based industry that employs a
substantial number of people and has the potential to create more
employment. A lot of people in this industry operate mainly in streets
and backyards.
Louw says over the last financial year, 23 women working in the
informal auto sector received formal training in motor mechanics and
were placed at auto companies around Alexandra. A new auto hub is
planned within Marlboro South, which will enable seven different
informal operations including spray painting, mechanics, panel beating
and exhaust repairs to be relocated off the streets.
The Alexandra Tourism Association, an ARP initiative, has developed
strong links with Sandton, Johannesburg and Gauteng Tourism
Associations. The Association aims to promote Alex as a unique tourism
destination and to assist tourism-related business to develop tourism
management skills.
According to Louw, around 387 people work within the tourism sector in
Alex. As part of the ARP’s youth programme, 43 youths were trained
through the Youth in Hospitality programme in Grahamstown and placed
at hotels in Sandton.
The ARP has so far identified 153 tourism and tourism related
businesses within Alex. These businesses will be given support on how
to access financial assistance through the Tourism Enterprise
Propeller. These include bed and breakfast establishments, taverns and
restaurants.
Most importantly, some of these businesses are now in line to be
graded by the South African Grading Council and qualify to be MATCH (FIFA’s
hospitality programme) vendors for the 2010 FIFA World Cup™. Retail
Alex has a vibrant informal retail sector that that employs
hundreds of people. The ARP has assisted in the formation of the
Alexandra Manufacturers and Retail Forum, which consists of five
affiliated associations, namely: the Alex Welders Association; Alex
Carpenters Association; Alex Sewing and Knitting Association; Alex
Baking and Catering Association; and the Arts and Craft Association.
These associations have helped the ARP to identify the area’s needs
and helped better target-training beneficiaries. Over the past
financial year, Louw says 15 spaza shops were assisted to formalise
their businesses by ensuring they adhere to legal requirements.
“On top of this, 27 informal traders were assisted to become members
of the Hawkers Association and 15 hair salons were assisted to become
members of the Retail Association.”
In addition to the Pan Africa Shopping Centre, a mega-mall under
construction at the Pan Africa Square, there are plans afoot to build
a retail and office facility along Vincent Road (former London Road)
and a retail and warehousing facility at the entrance of the Pan
Africa area.
According to the ARP, the Marlboro Industrial area has huge potential
to be an industrial hub. The programme is currently engaged in talks
with residents living in the area and Alex’s township development
wing, the Alexandra Development Forum, on the way forward. |
