How can South Africa expand its start-up economy?

In the wake of the COVID-19 pandemic, the significance of supporting small, medium, and micro-enterprises (SMMEs) has become more prominent than ever in South Africa. The city of Cape Town has taken proactive measures to bolster its start-up economy and foster growth in this sector. With a panel comprising James Vos, MMC for Economic Opportunities in the City of Cape Town, Anton Baumann, Executive Director of Empowerment Capital, and Katlego Maphai, Co-founder & CEO of Yoco, CNBC Africa delved into discussing the strategies and initiatives being implemented to support start-ups in the region. James Vos, the MMC for Economic Opportunities, highlighted the city's focus on enabling small businesses to compete for larger contracts through supply development and smart procurement training. The city has set up mechanisms to support small businesses in becoming more robust and competitive, with a strong emphasis on helping them navigate challenges and access essential resources. The establishment of a business help desk and partnerships with organizations like Productivity SA demonstrate the city's commitment to assisting businesses in distress and facilitating their growth. The approach adopted by the city of Cape Town has yielded positive results, with a significant increase in investments and job opportunities created in 2020. Despite the challenges posed by the pandemic, the city managed to secure investments worth 11.27 billion grand and generate over 7,000 new jobs, emphasizing the success of their programs. Anton Baumann from Empowerment Capital shared insights into their enterprise supply development model designed to empower small businesses and drive impactful change in the corporate sector. By focusing on incentivizing corporations to go beyond compliance and engage in meaningful support for SMEs, Empowerment Capital has seen explosive growth and deployment of capital into SMEs in the region. Their approach of providing long-term partnerships with entrepreneurs and minority investments has proved successful in fostering sustainable growth. Katlego Maphai, the Co-founder & CEO of Yoco, emphasized the importance of creating a conducive environment for ordinary South Africans to participate in the economy. Yoco's role in simplifying payment processes and removing barriers for entrepreneurs has enabled widespread access to technology-driven solutions for transacting. With 120,000 merchants nationwide, Yoco has facilitated ease of access and participation in the economy, underscoring their mission to empower individuals and businesses through technology. The collaborative efforts of policymakers, enablers, and entrepreneurs are crucial in driving the growth of the start-up economy. While each party plays a unique role in supporting small businesses, the alignment of strategies and focus on removing barriers and providing the right tools are essential for sustainable development. The partnership between the city of Cape Town and organizations like Empowerment Capital and Yoco reflects a coordinated approach towards fostering innovation, job creation, and economic empowerment in South Africa. The webinar organized by Cape Town in collaboration with Stockholm to discuss business ventures and ecosystem-building initiatives underscores the city's commitment to attracting new entrants and expanding opportunities for small businesses. Through targeted support programs, training, and access to markets, the city aims to create a thriving small business ecosystem that complements high-growth sectors and enhances skills development. In conclusion, the efforts of stakeholders in South Africa, including policymakers, enablers, and entrepreneurs, are pivotal in driving the growth of the start-up economy. By fostering collaboration, innovation, and access to resources, the city of Cape Town is poised to become a hub for entrepreneurial success and economic resilience in the region.