Small business in one of South Africa’s poorest areas crushed by government incompetence

The Lebalangwe brick factory in the Moretele municipality has been abandoned despite its potential to support the local economy.

Moretele is located in the North West’s Bojanala district, and has a population of 220,000, with many residents living in rural areas.

The municipality has very few built-up environments. The 2022 census found that only 7.4% of the population lived in urban areas.

The lack of urban spaces means there are few job opportunities in the area, resulting in a weak local economy.

Many households rely on agriculture to survive, with the area being well-suited to raising livestock such as sheep and cattle.

To boost economic growth, South Africa’s government announced plans to construct a brick-making factory in the municipality.

The factory was built in 2017 and was set to provide job opportunities for up to 100 skilled workers through the Expanded Public Works Program (EPWP).

The project would also provide residents with training opportunities in brick-making, with similar factories planned for construction in the area.

The Expanded Public Works Program further planned cooperative ventures, such as training for brick paving and business skills.

Currently, the factory is not operating, despite the significant investment in its equipment and infrastructure.

The Democratic Alliance (DA) has condemned the abandonment of the factory and said the municipality has given no reason for the stoppage of operations.

It said the factory was an essential part of the local economy and vital to providing jobs for residents.

The site continues to have security guards to protect its valuable assets, despite there being no plans to reopen.

“The premises continue to be guarded by security personnel, yet there has been no public explanation as to why operations ceased or what plans exist for the future of the facility,” the DA said.

No plans for the factory

Providing economic opportunities is particularly important in the North West, given its high unemployment rate.

The province has an unemployment rate of 35.3%, higher than South Africa’s average of 32.7%.

The expanded unemployment rate in the North West paints a worse picture, at 54.8% of working-age residents.

The expanded unemployment rate counts both those seeking a job and people who have stopped looking due to demotivation.

“It is unacceptable that productive public infrastructure has been left standing dormant while thousands of residents are searching for work and economic opportunities,” the DA said.

Moretele residents have expressed anger over the site’s abandonment, saying their community needs jobs.

The DA has said it will ask parliamentary questions about the project to clarify why it was abandoned.

There are also questions about the facility’s cost, which the national government and EPWP have not disclosed.

This includes the initial funds needed for infrastructure and equipment, as well as the ongoing security and maintenance costs.

There are concerns about the machines’ operational status, as no confirmation has been provided about their current status.

“Residents deserve answers as to why public infrastructure intended to benefit their community has been allowed to deteriorate without accountability,” the DA said.

“Public infrastructure should serve the people, not stand idle while unemployment continues to rise.”

The party said the provincial government must present a plan for the site, whether to reopen, repurpose, or dispose of it.

“Every abandoned government project represents more than wasted taxpayer money. It represents lost jobs,” it said.

It said that investment in the community was vital and that the provincial government should work to boost the local economy.

The area lacks large urban spaces to support residents in their job search, making these sites vital for skills development and job creation.