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The unnecessary delay by Gauteng Premier Panyaza Lesufi’s government in implementing the Township Economic Development Act (TEDA), passed in 2022, is severely affecting job creation in our communities across the province.

TEDA is meant to stimulate the local economy by cutting red tape and supporting township enterprises to grow and create sustainable employment opportunities. It assists township businesses in complying with regulations and participating in the formal economy. It mandates the Gauteng Provincial Government (GPG) to prioritise doing business with township suppliers to grow the local economy and create jobs.

Four years later, since TEDA was passed into law, it has yet to be enacted. This clearly shows that Lesufi’s government cares little about over 2.6 million unemployed Gauteng residents and 10.3 million youth who are not in education, employment, or training (NEET), who could have benefited from this Act.

According to the Gauteng Department of Economic Development's fourth quarter report for the 2025/2026 financial year, TEDA is undergoing several amendments. This is because many errors have been identified in the existing Act.

Despite supporting the Act, the Democratic Alliance (DA) Gauteng raised several concerns that entities such as the Gauteng Enterprise Propeller (GEP) already exist to assist businesses operating in the township economy. This includes the procedure for the designation of township enterprise zones and township enterprise precincts, and the provision of a register of township-based enterprises.

The DA Gauteng will engage the Gauteng MEC for Economic Development, Vuyiswa Ramokgopa, to ascertain why the amendments to this Act have not been certified and whether any defects should be rectified. We demand that the MEC engage other MECs to identify reputable township suppliers for government goods and services, instead of procuring from suppliers from other provinces, as has happened in the past.

The DA will continue to fight for the promotion and development of township enterprises that will, in turn, grow the local economy and create employment opportunities for our residents. A DA-led Gauteng Provincial Government would have rectified the amendments to ensure that the Act is certified to assist township enterprises to do business with the government.

Issued by Mike Moriarty MPL - DA Gauteng Shadow MEC for Economic Development