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to this now. The 2024 Township Economy Summit wrapped up today in mid-round, bringing together Township entrepreneurs, corporate leaders and government officials to explore strategies for unlocking the full potential of South Africa's Township economy. Now, held through a partnership between NetBank and the Township Entrepreneurs Alliance,
The two-day conference highlighted the critical need for an inclusive economic landscape. Now, Lizzi Mulhale, Executive for Insights and Advisory at NetBank, joins us on the line to share some key outcomes from the summit. Lizzi, a very good evening and welcome to Power Business.
All right, Lizzie, I guess tell us a little bit about the origins in of the Township Economy Summit and how it all came about, particularly in collaboration with the Township Economy Alliance. Yeah, so I'm looking for the partnership with Tunchip is the famous alliance, especially around 2021 after we saw the impact of COVID in Township Economy businesses.
And we found we were looking for a partner, who shares the same interest as our brand, and who's doing work and is resonating within the partnership economy. And since then, we've been, every month, we've been going to each country, running what we've got, that's a business lecture, addressing cutting it and key issues that are important to entrepreneurs. And through that relationship, that's what kind of made it to their entrepreneurs.
you know, some weeks, let me just consider it for the past two days, which was just mind-blowing. In terms of the content, that's what the start, the creators, who are there and how they show up, the content, they're the richness of the content and their profits of Africa. I have to give it for profits of Africa. Different brands came together and stood together and said, what do we need to do differently to make sure that we take our role also in uplifting and expanding
I can work in the opportunities that are sitting within the township economy. All right. And then, Lizzie, talk to me then, you know, with the township businesses valued at over 900 billion rand, how do you see events like this summit then helping to unlock the full potential of the township economy? Yeah. So, another, I believe that, I mean, right now, we hope that the spotlight is on the township economy.
And one of the biggest reasons why it comes, that's the case, is because a lot of us see it as an economy that's going to unlock the economic growth of South Africa through, you know, the small businesses that are being run in the States.
And I think I've told you before, I mean, is there an interesting intersection where, you know, we think entrepreneurs becoming innovative, they're taking into new technologies, taking into new sectors like the green economy, they're leveraging destructive technology. And on the other hand, they are both who are still, you know, challenged by the impact of, you know, COVID, the riots, changing whether it's electricity or water.
And also the impact from other market that you can mention are players like your she-in and your team that comes into into into the market. Then you have a project that's written to see to say, you know, that a good commercial space. I'm rethinking, you know, I'm I'm reinventing the approaches.
And as you engage with the courtship economy to weigh a different length around how is this corporate? We see the courtship and how we can partner to be able to undervalue. And I think, you know, governance, regulation, and some of the associations also challenged with, you know, what needs to be done differently to remove those barriers and obstacles that are holding back the growth of this market. So I think this intersection is very interesting.
And it requires all stakeholders to come together to have conversations like the conversations we've been having in the two days to make sure that we make the most of this opportunity and we don't break it. You know, on that note, I want to know then how has the summit engaged in with the township entrepreneurs, corporate leaders and government officials and what has been the response so far then from these key stakeholders? Yeah, I mean, obviously, I mean, if you look at the summit, the summit looked at
And, you know, a few things. And, you know, case studies of organizations like this, like, you know, I'm at any time and fun on how there's minutes to run their businesses and, you know, look at different operating models and business models to be able to to be successful within the partnership economy.
It can feature that sectors are quite critical to unlock the growth. You think transport, or logistics, manufacturing, green economy, the BECO market, which is just booming in the country, retail, and I agree. Given the opportunities that is there around security and distribution of that, that's the most important thing, the innovation that's going to help unlock the opportunities. So the conversation, what are those systems mixing?
that we need to address all the stakeholders, you know, to be able to really unlock and unleash this opportunity. And I think for me, that we are the richness, you know, and we look at the goods that is working and the challenges that exist in the spring. I mean, I will tell you what, my one key takeout that kept coming over and over is
The mindset to say, across all the stakeholders, we all need to change the mindset within which we see each other. Small businesses need to stop seeing, cooperate in governance as impediments and obstacles for things like compliance, right? These topics need to come to see and more people for the potential that we are able to bring to their table and not as risk. And also,
You know, other stakeholders and associations, when they aggregate their point, they also need to make sure that they bring value. That's the initial to the, you know, to the interpreneur. So everyone's coming with that angle and sitting and saying, if we bring all these things together, what does this mean for the country economy to make sure that it's not only the growth, but it is inclusive growth across the broad land.
And Lizzie, you know, how then do you see then financial service providers playing a role then in helping township entrepreneurs overcome the barriers of growth and create more sustainable businesses?
Yeah, I mean, there are two things that the financial sector is doing. And I must say, the financial sector has been forthcoming around the role that the financial sector can take in the country economy. I mean, one of the basic things that you can detect is digital transformation, right?
to say, as financial services, we are always looking at opportunities to say, how do we leverage technology to make it easy for businesses, for businesses to do their business, to reduce the cost of doing business, and to help them pay and have access to new markets. We look at things like the personal machine that all financial services provide us, are providing.
So you all start to be teaching payments. Those are the two that can help with access to Lendy. It can be a tool that gives you a check record about how your business is running and where the opportunities can be unlocked. It can be, you know, soft management. So you as a business, it can connect you with left mild delivery.
you know, services that, you know, you can offer e-commerce to your players to be able to pay you and how do you connect that with the last night. And I think that's the role that the financial worker is playing within this segment and also driving education and awareness around the importance of compliance, right?
And what's compliant and look for you rather than as a small business, as an impediment. See it actually as a tool that can help you to grow your business and understand the benefits that are there. Education around side-back maturity. So I think if we take into digital, how then do we help the small businesses to make sure that they are secure in how they engage and track back to its consumers? It's just because the small businesses are sitting in a street spot between the, you know, the big distribution of manufacturers and their consumers.
And they have a big world around. They can take and transform me. How do you talk transformation can go through the ecosystem? On that note, Lizzie, I want to know from you, you know, in terms of key outcomes and action points that will come out of the summit, you know, how do you plan for them? Or, you know, how will they be implemented to address the challenges in facing township entrepreneurs? Yeah, I think that's interesting. I've never mentioned it.
You know, big friends coming together, you know, in one case and, you know, I'm acknowledging that we all shared faith and no one, no one organization is going to be able to address all that is in the, in that country economy. We all need each other.
I think that was one of the things where, you know, you get big corporate to do that together. From small businesses as well, also to states, they need to also change a bit of mindset rather than, you know, because I'm trying to think of initial things that don't give us money. Retail retailers won't give us, you know, space for our products. So our government is over-beginning us with compliance. By saying it differently. To set things, for example, one of the examples that I really like is
So in manufacturing and retailing, there is a reason why it's important to register and get a product actually that is to address some of the issues we are seeing in our country through this service now. To say, now it's actually the importance of that complaint was about life-saving rather than creating a burden in, of course, to business. And it's not businesses that are seeing things that are different. It's about helping. And that's the commitment.
That's, you know, they put all the tables to say they'll be able to do that. And I found that from other government agencies, they were also coming forth and say, this is the role that we can start playing. For example, when we do skill development, we never go to the corporate and say they must find jobs for this young one. We also need to come to small business because they are the ones who don't have money to add in your resources. And if we have certain that we can pay, let's rather channel those
and young ones to small businesses so that they have of loads, the propensity of the small businesses. Look at some of the tangible things that I thought came out of their families. That's a tactical that can be implemented and that can be tracked every continue with this conversation. Yeah. And those are tangible solutions will definitely go a long way in ensuring that those key outcomes for the township economy are met. But that's all the time we have this evening, Lizzie. Thank you so much for your insights.
Thank you so much. Thank you very much. Fantastic. That was Lizzie Mulchale, executive for insights and advisory at NetBank, taking us through the Township Economy Summit, which concluded today in mid-round reflecting on the key outcomes.
