Zondani Sithole from eMachunwini in Msinga, northern KwaZulu-Natal showcases some of her work at the NAFCOC 60th anniversary celebration at the Durban ICC yesterday. Picture: Doctor Ngcobo Independent Newspapers
Image: Doctor Ngcobo Independent Newspapers
A research and development institute has outlined a five-point plan it believes could extricate South African communities from poverty and trigger economic progress.
The Ikwezi Institute for Research and Development stated that South Africans should stop waiting for the government and instead pool their community resources into financial projects that will generate economic activity.
Among the pillars outlined by the institute are the development of a community bank, community stores, and community insurance.
The institute detailed its plan during the 60th celebration event of the National African Federation Chamber (Nafcoc) at the Durban ICC yesterday.
Mzwanele Mayekiso, the executive chairperson of the Ikwezi Institute for Research and Development, is a former political activist.
“As a research institute, we are saying that we need to find ways to transform our economy so that it works for us; it does not only work for the minority that has been in charge all these years. The only way to do that is by having all of us engage in conversations to say, ‘we can no longer sit and wait for the government to deliver; we must stand up and be counted, and then partner with the government'."
He said people should not only blame the government for the pace of transformation in the economy, stating that South Africa went through a negotiated settlement. The ruling party entered those negotiations limping because it did not have the backing it had received from Eastern Europe and Europe during the liberation struggle.
He stated that the institute had developed five pillars that it believes would be the cornerstone of community economic prosperity, designed to encourage communities to keep money within their localities.
The first pillar is a community-owned cooperative bank. He noted that there are not many black-owned banks, and those that exist are facing challenges or have closed down. “The financial space in South Africa is highly controlled and racialised. Our challenge as Nafcoc, is how do we open the space? It is time to come together; the current period requires that we do not follow that way, otherwise we will perpetually be subjects of oppression and exploitation.”
The second pillar is community-owned cooperative stores. He mentioned that most community stores are now owned by foreign nationals, which means the money from the community is exported out of that community and does not serve the community. By following this initiative, communities could secure their resources, build community stores that have significant buying power, thereby securing discounts and remaining competitive while keeping money in the community.
The third pillar is community wealth funds, where communities could pool their resources, invest that money, including in the stock exchange, with the expectation that the returns will be greater than their investments.
He said the fourth pillar is community insurance, noting that there are no black-owned insurance companies in South Africa. If a national community insurance company were established, it could meet the needs of those looking to be insured.
The final pillar is community entrepreneurship and business development, which will encourage locals to lead in the economy.
“For me, these five pillars are going to take us somewhere in the next 30 years,” he said.
Nafcoc president Gilbert Mosena stated that together, members must aspire to build businesses that are not only successful but also large, influential, and resilient in the face of challenges.
“We must aim to move from being small to becoming the corporate giants of tomorrow. We must invest in our youth, empower our entrepreneurs with the relevant and innovative skills, and create an environment where black-owned businesses can flourish and become the producers of goods, rather than merely consumers of goods that we cannot produce.”