Gauteng Launches Merchant Development Plan to Boost Township Auto Trade

Speaking at the launch, MEC Diale-Tlabela hailed the programme as a bold policy shift from promises to implementation. “This is not just another project.

In a powerful move to advance economic inclusivity and local enterprise development, Gauteng MEC for Roads and Transport, Kedibone Diale-Tlabela, officially launched the Merchant Development Programme on Thursday in Krugersdorp. The initiative is set to transform township-based automotive businesses by strategically integrating them into government’s fleet maintenance supply chain, unlocking vital access to contracts, training, infrastructure, and support.

A Commitment to Township Economic Growth

Speaking at the launch, MEC Diale-Tlabela hailed the programme as a bold policy shift from promises to implementation. “This is not just another project. It is a bold and deliberate step toward realising the Gauteng Provincial Government’s commitment to inclusive economic growth,” she stated.

She reaffirmed Premier Panyaza Lesufi’s pledge that 60% of the provincial budget must be spent within townships, stressing that initiatives like this are key to achieving that ambitious target.

“Each rand invested in township merchants contributes directly to job creation and community development. This programme is about more than numbers. It is about impact, dignity, and participation,” she added.

Programme Partners and Strategic Goals

The Merchant Development Programme is spearheaded by g-FleeT Management, a trading entity of the Gauteng Department of Roads and Transport, in partnership with the Automotive Industry Development Centre (AIDC) and WesBank.

These strategic partners bring together infrastructure, training expertise, and fleet contract opportunities to support the end goal: building viable, accredited, and competitive township automotive businesses that can service public sector fleets.

Key pillars of the programme include:

• Skills development and upskilling of mechanics and technicians

• Accreditation assistance with compliance bodies such as the Retail Motor Industry Organisation (RMI)

• Business onboarding support for government fleet supply chain participation

• Access to workshop facilities and secure operational hubs

Currently, township spending by g-FleeT’s Fleet Maintenance Unit has risen from 7% in 2022 to 10% in October 2024, with a clearly defined target of 30% by end of 2025.

Chamdor Automotive Hub: A Launchpad for Township Mechanics

The Chamdor Automotive Hub is at the centre of this transformative initiative, acting as a development zone for township mechanics. The hub offers state-of-the-art facilities, safety, business development resources, and administrative support.

AIDC CEO Andile Africa described the initiative as a social and economic tool for redress.

“The Merchant Development Programme is more than just repairing vehicles. It’s about repairing the structural inequalities of the past, building sustainable businesses, and creating real opportunities for people in our communities.”

Africa emphasised that through the AIDC’s support, mechanics will benefit from access to RMI-approved infrastructure, ongoing compliance coaching, and access to a broader ecosystem of public and private clients.

Private Sector Partnership: WesBank’s Role in Fleet Inclusion

Backing the initiative from the finance sector, WesBank is a key player in the RT46 transversal government contract, which oversees the procurement, maintenance, and decommissioning of vehicles across national and provincial government departments.

Marcellus Mbanda, WesBank’s National Contract Manager for Fleet Services, highlighted the bank’s ongoing role in ensuring township-based auto businesses benefit from government fleet maintenance contracts.

“Currently, WesBank is working with about 243 township merchants outside the Chamdor hub under the RT46 contract. Since 2021, the amount spent on repairs by township merchants has reached R37 million,” said Mbanda.

He also spoke of the TISH (Townships, Informal Settlements and Hostels) development approach, ensuring that automotive entrepreneurs in historically underserved areas are not left behind.

A Model for Inclusive Economic Development

The Merchant Development Programme is being lauded as a replicable model for inclusive economic development that connects policy intent with ground-level execution. It aims to rebuild trust in government procurement processes, and empower township businesses to become service providers, job creators, and training hubs for future artisans and technicians.

As South Africa grapples with high unemployment, especially among youth, the programme offers a practical mechanism to create sustainable, localised economic activity by plugging small businesses into the public supply chain.

Looking Ahead

With township mechanics now receiving formalised support, the province hopes to reshape the automotive sector into one that is more representative and economically empowering. The programme’s expansion and tracking of its 30% procurement goal will be a critical benchmark over the next year.

For entrepreneurs in Krugersdorp and surrounding areas, the Merchant Development Programme is not just an opportunity—it is a pathway to prosperity, skills advancement, and recognition in an industry long dominated by large, centralised operators.