Businesses back SA townships despite violent riots
When violent riots broke out in South Africa this month, former soccer player Lucky Lekgwathi hoped his restaurant in the Soweto township would be spared.
He says he's popular in the area and that he was using the fast-food establishment, Grootman, to give back to the community.
But his hopes were in vain.
"They took like everything, including the toilet, the sinks, the water pipes and the electric wires. They took everything!"
His store was one of about 3,000 which were looted during the July riots which killed 300 people, sparked by former President Jacob Zuma handing himself in to start a 15-month jail term for contempt of court.
Despite the losses caused by the recent unrest, prope rty developers and retailers say they remain committed to the fast-growing consumer markets of its predominantly Black townships, driven by rising consumer spending by the Black middle class in areas that were disadvantaged for decades under white minority rule.
Vukile Property Fund CEO Laurence Rapp says they will forge ahead with a $6.1 million USD upgrade of the damaged Daveyton Mall in Johannesburg.
"We are definitely gonna continue to invest in the areas. I think strategically we are very committed...we feel like this is where the majority of South Africans live. By bringing malls to them, you add tremendous value to the people's lives. And we can see it, you know if you can take away the cost of travel for a consumer, it puts a lot of disposable income back into their pockets."
But many small business owners like Lekgwathi don't have the financial elasticity to bounce back on their own.
His damages come to over $27,000, around 2,000 of which he has recouped so far through private donations.
"People are so generous, they are willing to help, and we are still waiting for them to help because, now I don't have money to start. // I still want to hear from the government. Let's hope they're going to help - this is something that was helping me to put bread on the table."
The recent unrest was a major setback but most are determined to take on such challenges and forge on due to the attractive profit margins still on offer.
