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base of the pyramid economic development small business

Informal business industry body celebrates 30 years

This year marks the 30th anniversary of The African Council of Hawkers and Informal Business (ACHIB). Having being formed in 1986 during the height of Apartheid, to serve and protect the interest of hawkers, spaza shops and other informal businesses. These businesses were constantly harassed by the then Apartheid municipalities and police force.

To date it has over 110 000 members, countrywide. ACHIB has achieved numerous victories, including the removal of restrictions of hawking in the entire country.

As part of the reforms which were implemented by the Apartheid government in 1991, all laws that prohibited the economic activities of hawkers were abolished and replaced with the Business Act. This act outlawed the confiscation of hawkers’ goods and it also helped the spaza shops in the townships to flourish.

Currently over 3 million people are either involved in hawking or are spaza shop owners.

In future, ACHIB will work to ensure that hawkers and spaza shops have collective buying power that will enable them to sell at competitive prices.

As ACHIB turns 30 it will ensure that there is no new legislation that will be brought back to criminalise hawking and informal trading.

The ACHIB will host celebrations as follows:

4th February 2016: KwaZulu Natal, Richards Bay

17th February 2016: Eastern Cape, East London

24th February 2016: Gauteng, Johannesburg

2nd March 2016: Limpopo, Sekhukhune

16th March 2016: Mpumalanga, Nelspruit

23rd March 2016: Free State, Bloemfontein

6th April 2016: North West, Klerksdorp

13th April 2016: Northern Cape, Kimberly

20th April 2016: Western Cape, Cape Town

National celebrations will be held on the 18th of May in Johannesburg. The National Ministry of Small Business, Trade and Industry, Provincial Premiers and MEC’s will also be part of the celebrations. Fraternal organisations which are in the same industry including international players will be in attendance. For further details contact: nafcocmedia@gmail.com.

– Press statement from African Council of Hawkers and Informal Business

Categories
economic development entrepreneurship small business Uncategorized

Debunking myths about foreign-owned businesses in townships

In this eNCA online debate, I chat to Abdirizak Ali Osman from the Somali Community Board of South Africa; Dumisani Mathabela, a store and restaurant owner in Dobsonville, Soweto; Sally Peberdy of the Gauteng City Region Observatory and Wayne Ncube of Lawyers for Human Rights. We discuss the myths that are held about foreign nationals involved in informal retail trade and discuss  a way out of the tense relations between local and migrant business owners.

You can view the video at Youtube and on eNCA’s website http://www.enca.com/south-africa/live-role-migrants-township-economy

Categories
economic development entrepreneurship Fanon small business violence

Business Day column: Empty economic nationalism does spaza shops no favour

In this column, I turn to Fanon as I reflect on the toxic competition that has fermented between locally-owned and foreign-owned informal retailers:

YOU might have seen those voluminous, woven plastic bags with plaid patterns that many South Africans use to carry their luggage across the country, particularly during the Easter and Christmas breaks. They teeter on minibus taxi roofs or peep out from overloaded trailers. In West Africa, they are called “Ghana must go”, in ironic remembrance of Nigeria’s expulsion of immigrants in the 1980s. In SA, they go by names such as Khumbul’ekhaya bag or Mashangaanbag.

“These alienating names reveal something of the anxiety expressed towards the carriers of these bags in the communities they relocate to. These bags have become global symbols of migration,” writes Nobukho Nqaba about her photographic work, Umaskhenkethe Likhaya Lam.

In a country so marked by migrancy and movement, perhaps the economic ambition of the newcomer is all too familiar. A couple of days ago, I had a tense exchange on Twitter with someone who was unimpressed with my take on the grievances against foreign-owned businesses in our townships. My debater took particular offence to my argument that suppressing such businesses will not improve the economic lot of South Africans.

In his view, I was beholden to what he called “textbook” economics. His characterisation of fellow Africans was quite harsh, despite the red beret featured on his profile picture. And so I appealed not to “textbook economics” but to Frantz Fanon.

The rest of the column is here: http://www.bdlive.co.za/opinion/columnists/2015/02/03/spazas-need-to-adapt-to-new-retail-landscape

Categories
economic development enterprise development entrepreneurship incubator small business start-ups

Branson Centre partners with Liberian entrepreneurs

From the Branson Centre of Entrepreneurship:

Entrepreneurial ties between Liberia and South Africa received a boost recently when a group of 15 entrepreneurs from the West African state attended a foundation course at the Branson Centre of Entrepreneurship (BCOE) in Johannesburg. It was the first time that BCOE has opened its doors to entrepreneurs from other countries in Africa.
While the course covers fundamentals, such as accounting and business planning, the approach is “truly Virgin”! Entrepreneurs are taught the art and science of breaking the rules to capture the imagination of customers and investors alike. In addition to insights from the Virgin Group of Companies and its British billionaire founder, Sir Richard Branson, there were practical tips and real-life experiences from a number of sought-after guest speakers. Among them were:
·                               Paul Smith, South Africa’s foremost authority of entrepreneurship;
·                               Clive Butkow, former COO of Accenture South Africa; and
·              Tracey Webster, Executive Director of Archbishop Desmond Tutu’s African Leadership Initiative.
The Liberians were also given the opportunity to engage South African entrepreneurs who have been trained by BCOE and will act as mentors moving forward.  
Although Liberia is one of the poorest countries in the world, its entrepreneurs are finding solutions that have the capacity to grow the economy and improve peoples’ lives in the future. Some of the entrepreneurs in the group are in agriculture, food manufacturing/processing, renewable energy, transport and water/sanitation. For example, Agro Inc. links farmers to markets, so Liberia can “eat what it grows” and We Trade Liberia specialises in renewable forms of energy. Since electrification is a major issue (statistics put it at 5% nationwide and 50% in cities), solar lighting is an accessible, cost-effective alternative. At the same time, the socio-economic environment is conducive to the emergence of service industries, like beauty, catering, fashion design, marketing, printing and tourism. A strong commitment to social upliftment and the empowerment of women were prevalent throughout.
The entrepreneurs are due back in South Africa in a few months to do BCOE’s advanced course. According to Jane Rankin, the Chief Executive of BCOE, this is where the rubber meets the road. “Between now and then, the entrepreneurs implement their business plans. Once everything is in place, we give them the tools they need to take their businesses to the next level.”
While BCOE provided the training, funding was received from Humanity United, an American NGO focused on overcoming the legacy of conflict and slavery in Liberia and Sudan. The Programme Manager from the University of Liberia in Monrovia, Wilson Idahor, says that the entrepreneurs were identified by means of a print media campaign. “Approximately 250 applications were received. After interviewing the shortlist of 25 applicants, 15 were chosen.”
BCOE plans to offer its courses to other NGOs involved in the fields of entrepreneurial development and job creation. Programmes can be designed around audiences, budgets and timeframes. In the case of the group from Liberia, the foundation course was done over a period of five consecutive days instead of one day a week for six weeks.
BCOE launched in Johannesburg in 2005. Its primary aim is to help entrepreneurs become innovative business leaders who create jobs and stimulate economic growth.
www.bransoncentre.org/southafrica/home
Issued by:
Lauren Winchester
The Red Phone
T. 011 469 3770
C. 083 421 9683
E. lauren@theredphone.co.za 
For and on behalf of:
Gavin Meiring
Branson Centre of Entrepreneurship
T. 011 403 0622
E. gavin.meiring@bransoncentre.org 

/Ends. 
Categories
economic development entrepreneurship healthcare

Transcending paralysis in healthcare policy

We are all born with dual citizenship. I take this from that beautiful paragraph by Susan Sontag where she reminds us that we all hold citizenship in the kingdom of the well and in the kingdom of the sick. We prefer to use the good passport, but we can never escape our other citizenship.

My earliest encounters with the kingdom of sick were through my late grandmother’s experiences in the eighties, as I watched her slide into blindness, probably due to glaucoma. Given the sluggish transport system in Hammanskraal at the time, and the mind-numbing queues at the now infamous Jubilee hospital, we had to dedicate a full day to have a decent appointment with a doctor and to collect from the hospital’s pharmacy any medication that might be prescribed.

This was before cellphones and the internet, so all that we knew about my grandmother’s gradual decline was based on the little we could glean from the mutterings of inattentive doctors. The diagnosis was slow in coming and given with little conviction and even less empathy. We survived on little but hope, eye-drops and multi-vitamins. My grandmother never emerged from the much-feared kingdom. Eventually she turned her back on the healthcare system and learned to live with her blindness.
I would hope that in a free, more prosperous, more connected country with better infrastructure, such experiences would be in the past. But the headlines suggest otherwise.
I am reminded of all of this by a fascinating documentary I stumbled across on Al Jazeera called Indian Hospital Revisited. The documentary returns to the site of a series shot two years earlier, Indian Hospital, which chronicles healthcare innovation in an enterprise based in the city of Bangalore. The series is also a detailed study of the ways in which health is linked with broader socio-economic developments, for better and for worse. We are taken into the home of a family that struggles, in the face of the cost of care relative to their income, to keep a daughter with kidney disease and renal failure alive. The lifesaving kidney transplant that promises to give her a productive life is undermined by the environment in which the young woman lives, which includes stress and domestic violence. The young woman is trapped in the vicious cycle of ill health, which leads to unemployment (in her case she exhausts her leave days and is let go from work), and even worse health as care slips out of reach.
But there are also happy stories, such as that of the abandoned baby with a severe facial cleft who receives exceptionally complex reconstructive surgery in spite of being under the care of an orphanage. Or the teenager whose jaw has been locked since she was a baby, but after surgery she is now able to eat properly and smile for the first time in about fourteen years. This is a mixed blessing, due to her family’s poverty and the realities of her rural village community; her new-found vitality makes her eligible to become a child bride.
At the centre of the documentary is the audacious vision of an Indian doctor, Dr Devi Shetty, to provide affordable, high-quality healthcare to all, rich and poor alike. He is not shy about his intentions as he goes about running Narayana, a hospital he founded to fulfil his vision. Narayana, according to Al Jazeera, boasts a 1,000 beds in its cardiac unit, 500 beds in its eye hospital and 1,400 multi-disciplinary beds. The volumes are unusually high, with the complex seeing about 7,000 outpatients a day. The model depends on scale and operationally efficiency. Dr Shetty refers to Walmart with admiration. A unique combination of medical skill and business savvy, he jokingly calls management accounts post-mortems because they arrive too late to do anything meaningful with them. He tracks the financials of his hospitals on a daily basis to manage the fine balance between profitability and providing access to the poor.
Measures to lower cost as Narayana include leasing equipment instead of purchasing it. This is a fairly straightforward business proposition that has been tried in many other industries. Crucially, in the medical sphere, it alleviates the drive towards the over-provision of services. In this model, doctors order the tests that they need, rather than nice-to-have diagnostics that inflate the medical bill without much clinical impact. Narayana has also managed to build a model that provides quality care to rich and poor alike; with the rich paying a premium and getting additional services such as private rooms, whilst the poor are subsidised.
We have created a mystique around healthcare. The thought of ‘Walmartising’ its provision makes many cringe. But that is the approach that Dr Chetty, who has been dubbed the Henry Ford of medicine, embraces. There is no shame in his game; which is ultimately about expanding access to healthcare. The model is not perfect. The hospital, in spite of its scale economies, has not met its target of reducing the cost of dialysis. Much seems to depend on the founder’s charisma and his team of highly motivated and unusually productive staff. These are factors that are difficult to replicate across a whole system.
This is not India; I am reminded as I mutter with admiration throughout the show. Yes, it’s not. We do not enjoy the scale that country has due to its population size. We do not produce the same number (or ratio, I suspect) of healthcare practitioners. But our healthcare system could benefit from low cost health interventions that expand access without compromising quality. The National Development Plan identified the non-communicable disease burden, especially heart disease, high blood pressure, high cholesterol and sugar diabetes as a major threat to the country’s development over the next two to three decades. This is in addition to the other elements of what is dubbed our ‘quadruple burden of disease’: HIV/Aids and related diseases such as TB; violence, injuries and trauma, and maternal and child mortality and morbidity. Expenditure on healthcare in South Africa, at over 8% of GDP, is comparable to other middle income countries, but outcomes are poor.
A high disease burden has a negative impact on economic growth and human development. Illness can push newly middle-class families back families back into poverty. In spite of the obvious and crucial role that healthcare plays in progress, there are many societies that remain mired in seemingly intractable debates about how to deliver healthcare in an equitable manner. The US is a stark example of this pathology. In spite of its high disease burden and a weakening economy with increasing numbers of citizens with precarious incomes, that country’s health care reform initiatives, including Hillary Clinton’s attempts in the 1990s all the way to Obamacare today, are paralysed by partisanship and vested interests.
Yet the answer surely starts with open debate and interventions that require partnerships between diverse interests and sectors to lower the cost of prevention, screening and care. Across the world, innovations are emerging on various fronts – information (including patient empowerment tools), distribution, organisation, process, financing (including micro-insurance) and communication (including tele-medicine) – to realise a new approach to healthcare delivery. We cannot afford to indulge in American-style policy paralysis and risk being left behind.