A township stock exchange in the horizon in Gauteng
Work has begun in the Gauteng Department of Economic Development to investigate the possibility of establishing a township stock exchange. Yesterday Economic Development MEC Lebogang Maile met fund managers and professionals in the equities market to further discuss the idea of a township stock exchange, which would enable township businesses to access funding.The Gauteng provincial government has over the past year been on a roadshow to revitalise township businesses.At the heart of the campaign was a quest to find new ways to fund these businesses."We're saying: Let us explore other possibilities, including establishing a stock exchange, which can create an opportunity for township-based entrepreneurs. We have started preliminary discussions with the Johannesburg Stock Exchange. We think it is feasible. We are engaging with professionals in the field and we will be issuing an expression of interest by the end of this month," he said.Maile hopes a "concrete" announcement would be made by the time Premier David Makhura presents his state of the province address next year.Funding of small businesses has been a thorny issue for the ANC and the government.State development finance institutions have not been thriving in the market as small businesses struggle to repay the loans.Recently the Gauteng Enterprise Propeller under Maile's department issued a moratorium on funding for new applications after it had exhausted its funds.The agency was owed R100-million by entrepreneurs.Peter Jardine, director of Constant Capital in Seychelles, said the township stock exchange was feasible. His company was recently involved in the establishment of a similar stock exchange in the Seychelles.