It was expected to create jobs and boost local commerce. However, despite initial successes, including daily sales of over R350,000 at the first pilot store, serious operational and financial issues have plagued the project

Gauteng Department of Economic Development Raises Concerns Over Pick n Pay Market Store Initiative Amid Competition Commission Investigation

By Carol Mohlala

 

The Pick n Pay Market Store initiative, launched in 2016 in partnership with the Gauteng Department of Economic Development (GDED), Gauteng Enterprise Propeller (GEP), National Empowerment Fund (NEF), and Small Enterprise Finance Agency (SEFA), was once heralded as a game-changer for township businesses. The program aimed to uplift small, independent stores by transforming them into thriving neighbourhood convenience hubs, offering them access to advanced retail infrastructure, supply chains, and systems. However, years later, significant challenges have emerged, prompting an ongoing investigation by the Competition Commission and growing dissatisfaction from government stakeholders and beneficiaries alike.

The initiative was part of Gauteng’s Township Economy Revitalisation (TER) program, a broader provincial strategy aimed at transforming, modernising, and re-industrialising the township economy. It was expected to create jobs and boost local commerce. However, despite initial successes, including daily sales of over R350,000 at the first pilot store, serious operational and financial issues have plagued the project.

Speaking at a recent meeting called to address the mounting concerns, MEC for Economic Development, Lebogang Maile, expressed deep frustration over the failure of Pick n Pay to attend the discussions. The meeting brought together key stakeholders, including representatives from GEP, NEF, SEFA, and the affected store owners, but the absence of Pick n Pay—arguably the central player in the initiative—was seen as a display of disregard for both the beneficiaries and the process of resolving their issues.

“The attitude displayed by Pick n Pay in not attending this important meeting is unacceptable,” said MEC Maile. “We are dealing with real problems affecting people’s livelihoods, and for them to disregard this engagement is to disregard the very people this initiative was meant to support.”

Mounting Challenges for Market Stores

Over the years, numerous issues have surfaced within the Market Store initiative. Beneficiaries have raised concerns about mounting debt, thinning profits, and operational challenges. Problems such as forced overstocking, excessive promotions at the cost of the store owners, high electricity costs, and bullying tactics by Pick n Pay staff were brought to light. Many stores have found themselves in deep financial distress, with two of the seven GEP-funded stores shutting down entirely due to unsustainable debt.

The core issue, as highlighted by the Competition Commission’s ongoing investigation, revolves around Pick n Pay’s management of the initiative. Beneficiaries have accused the retailer of exploiting its control over the IT system used by the stores, automatically ordering stock that wasn’t needed and preventing the stores from sourcing products from alternative suppliers. “One store in Pan African Mall has been resolved, with Pick n Pay compensating the owner, but other cases remain far more complex.”

The investigation remains ongoing, and while the resolution of one case offers a glimmer of hope, it is clear that deeper, systemic issues must be addressed.

Gauteng Department’s Plan for Resolution

Despite the challenges, the Gauteng Department is committed to finding a solution that protects the interests of township businesses and ensures the long-term sustainability of the initiative.

MEC Maile outlined several key actions aimed at addressing the current issues:

  1. Engagement with Key Stakeholders: The MEC will write to SEFA, NEF, and Nedbank, outlining the systemic issues affecting the project and urging these institutions to collaborate in resolving them. A case-by-case assessment of each business involved will be conducted to offer tailored support and assistance.
  2. Speeding Up the Competition Commission Investigation: Recognising the urgency of the matter, the MEC has requested that the Competition Commission expedite its investigation. “We need clarity and justice for the beneficiaries, and the Commission must move swiftly to resolve this,” he said.
  3. Direct Engagement with Pick n Pay Leadership: MEC Maile announced plans to write directly to the CEO of Pick n Pay, seeking a formal meeting to resolve the outstanding issues. The Department believes that top-level engagement is necessary to ensure Pick n Pay takes accountability for its role in the difficulties faced by market store owners.

During the meeting, the GEP presented a report confirming that some beneficiaries received grant funding and that none owe GEP, as these funds were non-repayable. Similarly, NEF shared that it had only funded three stores, halting further expansion due to concerns about Pick n Pay’s management of the model. SEFA, which joined the initiative in 2011, emphasised that the grant funding element was designed to assist with loan repayment.

This financial assistance has been crucial, but beneficiaries continue to struggle with operational costs, debt, and the lack of flexibility imposed by Pick n Pay’s retail systems.

A Path Forward

MEC Maile is determined to resolve these issues. He called for all parties involved to work collaboratively in charting a new path forward, recognising the infrastructure and investment already made in these township businesses.

“The infrastructure is there, the investments have been made, and this initiative must be seen as an opportunity, not a failure. We will not allow these businesses to crumble,” the MEC said.

The Department’s goal is to revitalise the project, ensuring that it fulfils its original mission of empowering township businesses and providing local communities with convenient access to essential goods. However, this will require a coordinated effort from all stakeholders—especially Pick n Pay, whose engagement will be crucial in turning the initiative around.

The Pick n Pay Market Store initiative was designed with the best of intentions, but its implementation has been riddled with challenges that have left township business owners in distress. GDED led by MEC Maile, is committed to finding solutions through continued engagement with all stakeholders, but the road ahead will require accountability from Pick ‘n Pay and swift action from the Competition Commission.

As the investigation continues, all eyes will be on Pick n Pay to see whether it will step up to the plate and fulfil its promise of supporting township economies.

 

Update: 04 November 2024. MEC Maile met Nedbank’s Chief Executive Officer, Mr Jason Quinn and the Group Managing Executive responsible for Retail and Business Banking, Mr Ciko Thomas, regarding the PnP Township Market Stores and the challenges the owners have been facing.

A steering committee will be formed to individually meet with the businesses that were funded by Nedbank to assess the nature of the challenges they face and to seek ways to assist the stores.

We are encouraged by this progress and will continue to strengthen financial controls, ensuring public funds benefit our communities

By Gauteng Development Communicator

06 October 2024, The Capital, Sandton. GDED Group agencies including the Gauteng Growth and Development Agency, the Automotive Supplier Park, the Innovation Hub, the Constitution Hill Precinct, the Gauteng IDZ, the Gauteng Tourism Authority, the Gauteng Liquor Board, Dinokeng, and the Cradle of Humankind achieved clean audit opinions for 2023/24.

The Gauteng Enterprise Propeller was one of eleven (11) departments and entities that received unqualified audit opinions in the 2023/24 financial year, which means while their financial statements were fairly presented, they are some compliance or performance issues that need to be addressed.

Premier Panyaza Lesufi said of the awards, “We are encouraged by this progress and will continue to strengthen financial controls, ensuring public funds benefit our communities.”

The improved audit results are an indicator that the strategic interventions such as internal audits are yielding positive results which will reduce fruitless expenditure by the department and its agencies and put improve economic development in the province.

The Liquor Board must expedite its processes, but we will not dictate whether to issue or not issue licenses. The focus is on improving turnaround times and communication,” said MEC Maile

MEC Lebogang Maile Commits to Resolving Liquor Licensing Challenges at Stakeholder Meeting

By Carol Mohlala

 

In a significant step towards resolving long-standing challenges in the liquor licensing system, the Gauteng MEC for Economic Development, Lebogang Maile, met with key liquor industry stakeholders. The meeting aimed to address pressing issues such as the backlog of liquor license applications, the operational shortcomings of the Gauteng Liquor Board (GLB), and allegations of corruption within the system.

Tackling the Liquor License Backlog

One of the central topics of discussion was the 791 liquor license applications currently in a backlog, with 80% of these applications reportedly rejected. MEC Maile emphasized that addressing this backlog is a top priority for the department, highlighting the need for efficient, transparent, and fair processes.

To this end, the MEC has tasked the Chair of the Gauteng Liquor Board with conducting a thorough review of the backlog to understand the underlying issues causing delays. A key focus will be on providing clear, written reasons to applicants whose applications are rejected, ensuring that they are informed and empowered to address any compliance issues.

“The Liquor Board must expedite its processes, but we will not dictate whether to issue or not issue licenses. The focus is on improving turnaround times and communication,” said MEC Maile.

Streamlining Communication and Improving the Online System

A recurring concern raised by stakeholders was the lack of communication between the GLB and applicants. Several stakeholders expressed frustration over prolonged waiting periods, with some applications pending for years without any updates.

The introduction of the new GLB online system, intended to streamline the licensing process, has faced some implementation challenges. While the system was designed to reject incomplete applications and improve turnaround times, stakeholders raised concerns that it is not functioning as intended.

Some applications are processed within 90 days, while others experience extended delays. In response, MEC Maile acknowledged the flaws in the system and committed to reviewing its performance to ensure that all applications are processed fairly and consistently. “We are working to ensure that the online system functions as it should, with clear communication and regular updates to applicants,” he said.

Addressing Corruption and Unethical Practices

MEC Maile also took a firm stance on corruption within the liquor licensing process, condemning any acts of bribery or the solicitation of “expedition fees” in exchange for faster processing of applications. Stakeholders highlighted instances where applicants were reportedly asked to pay between R10,000 and R50,000 to expedite their licenses.

The MEC encouraged whistleblowers to come forward with information about these unethical practices, assuring them of full protection under the law. He stressed that corrupt officials must face dismissal rather than mere suspension. “We will not tolerate any sabotage of government business. Officials who request bribes will be dealt with decisively,” Maile stated.

Improving Access and Fairness for Township Businesses

Another critical issue raised was the high rejection rate of liquor license applications from township businesses, particularly in areas like Alexandra, where 8 out of 10 applications are denied. MEC Maile assured stakeholders that this imbalance would be addressed, and fairness in the application process would be prioritized.

The meeting also touched on the challenges related to Local Authority Approval (LAA) for license applications, including for restaurants. While precedents had previously been set where LAA was not a requirement, the inconsistent application of this rule has created confusion and delays. A task team will be established to clarify and streamline these processes.

Ensuring Accountability in the GLB

MEC Maile concluded the meeting by outlining clear expectations for the Gauteng Liquor Board. He called for improved accountability, with officials required to be present in the office, answering calls, and responding to emails. He underscored that the board must fulfil its mandate to provide efficient service to the public, in line with the government’s commitment to service delivery.

“The office must be open, calls must be answered, and emails must be attended to. We will not compromise on this,” the MEC reiterated.

The Road Ahead

MEC Maile’s proactive approach to addressing these challenges signals a commitment to ensuring that the Gauteng Liquor Board becomes a well-functioning entity that serves the needs of the province’s liquor traders. By tackling the backlog, improving communication, addressing corruption, and ensuring fair access for all businesses, particularly those in townships, the MEC is laying the foundation for a more accountable and efficient liquor licensing system.

The Department of Economic Development, under MEC Maile’s leadership, will continue to engage with stakeholders and monitor progress closely, ensuring that these reforms translate into tangible improvements for the liquor industry in Gauteng.

For further information and updates on liquor licensing processes, stakeholders are encouraged to engage with the Department via official communication channels.

The campaign’s inaugural blitz focused on Tembisa and Ivory Park, where 16 business premises were visited by a multi-disciplinary team

Qondis’ Ishishini Lakho: Pioneering A Compliance-Driven Business Environment In Gauteng

By Carol Mohlala

 

On 12 September 2024, the Gauteng Department of Economic Development (GDED), in collaboration with key stakeholders, launched the ” Qondis’ Ishishini Lakho – Fix Your Business” campaign, aimed at promoting compliance and formalization of businesses across all regions in Gauteng.

The launch, held at Rabasotho Hall, marked the beginning of a comprehensive initiative designed to ensure businesses adhere to legal standards and foster a thriving, compliant business environment.

The campaign’s inaugural blitz focused on Tembisa and Ivory Park, where 16 business premises were visited by a multi-disciplinary team. The stakeholders in attendance included representatives from the City of Ekurhuleni, SAPS, Crime Prevention Wardens, Gauteng Liquor Board, Gauteng Consumer Office, and the Gauteng Tourism Authority, among others. The operation uncovered widespread non-compliance, particularly among businesses operated by foreign nationals, with several infractions reported.

The inspection in Tembisa and Ivory Park revealed a host of violations, including expired medical products, expired SARS certificates, and the illegal sale of medicinal supplies without permits. Several cellular shops and liquor outlets were found operating without proper licenses, leading to the closure of five establishments. Gambling equipment was confiscated from an unlicensed internet lounge, and numerous businesses were issued compliance notices.

Key interventions were carried out, such as the confiscation of expired goods, closure of illegal operations, and referrals to relevant authorities for further investigation. For instance, at one premises, Dr. Nyoka’s Surgery, the owner, who falsely claimed to be a medical doctor and pharmacist, was using expired medicinal products. The case has been escalated to SAPS for further action.

Qondis’ Ishishini Lakho is a provincial initiative that will be rolled out across all Gauteng regions. The campaign aims to cover both formal and informal sectors, offering support to businesses to ensure they meet regulatory standards. Key areas of focus include consumer protection, adherence to SARS regulations, business licensing, and compliance with health and safety regulations.

The blitzes will continue throughout the province, with targeted interventions in areas where non-compliance is most prevalent. The campaign encourages local businesses to rectify issues proactively, offering a pathway to formalization and legal operation, while also ensuring consumers are protected from unsafe and substandard products.

The success of this initiative lies in its multi-stakeholder approach. The blitz operation in Tembisa and Ivory Park is just the first of many to be conducted in collaboration with municipal officials, immigration authorities, and law enforcement agencies. The GDED’s Gauteng Liquor Board, National Credit Regulator, National Consumer Commission, and other bodies will continue to play an integral role in monitoring compliance and supporting businesses in navigating legal requirements.

 

Business owners are encouraged to take advantage of the resources and guidance provided through Qondis’ Ishishini Lakho, ensuring that they remain compliant and contribute to a safer, regulated, and prosperous business environment in Gauteng.

 

As the campaign moves forward, the Gauteng Department of Economic Development aims to implement periodic follow-ups in areas identified as high-risk for non-compliance. The initiative is poised to become a cornerstone in transforming Gauteng’s business landscape, supporting both emerging and established businesses in maintaining legal and ethical standards.

 

The “Qondis’ Ishishini Lakho” campaign is not only about fixing businesses but also about driving economic growth by ensuring that businesses operate within the law, thereby fostering trust with consumers, investors, and partners. This initiative underscores the Gauteng Provincial Government’s commitment to building an inclusive economy where all businesses, regardless of size or background, can thrive in a compliant and structured environment.

Today, TMF Gas is an example of how entrepreneurship and collaboration can make a positive impact on the local economy

TMF GAS Success Story

TMF Gas, under the visionary leadership of Mr. Thapelo Mothala, turned their ambitious vision of bringing clean energy to Boksburg into a remarkable reality. By providing the necessary funding, GEP propelled TMF Gas towards its goal of combating climate change through a cleaner, and more sustainable energy alternative.

With GEP’s help, TMF Gas was able to stock up, establish a well-organised operation, and successfully launch its business in the bustling Dawn Park Shopping Centre. This prime location provided TMF Gas with convenient access to both homes and businesses.

Today, TMF Gas is an example of how entrepreneurship and collaboration can make a positive impact on the local economy, demonstrating how small businesses can contribute to sustainable development. The business is now ready to innovate and empower, reshaping the energy industry and contributing positively to the communities that it serves.

Sameera Rasool’s Mumbai Spices is a unique venture that fuses tradition and modern technology to create the perfect spice. Based in Kempton Park, they bring the finest spices from around the globe, preserving their original flavour, scent, and texture.

Mumbai Spices Sees Success with Help of GEP Youth Fund

Mumbai Spices Sees Success with Help of GEP Youth Fund

Sameera Rasool’s Mumbai Spices is a unique venture that fuses tradition and modern technology to create the perfect spice. Based in Kempton Park, they bring the finest spices from around the globe, preserving their original flavour, scent, and texture. They also provide custom milling and blending services, enabling customers to create tailored combinations that suit their palate.

“I come from a logistic and business management background, worked in the corporate and the government sector for a bit, then started Mumbai Spices. In the time that I was with my mother in business, I had the privilege of learning extensively about the industry,” said Sameera.

“We have built up very good working relationships with multiple suppliers overseas and thus am able to source goods at very competitive prices to enable Mumbai Spices to be a more than capable and respected player in the local industry.”

The business was facing a range of challenges and needed assistance to expand its operations. To that end, the GEP Youth Fund provided the necessary funding to purchase a truck and an electric-powered forklift. This was beneficial to the business in multiple ways, as it enabled them to increase their storage capacity, move and load stock more efficiently, and carry larger loads during client deliveries.

“I understood the role that an organization like the GEP could play in the advancement and development of my business. With that being said, it meant that I could unlock and secure funding in order to grow the business and allow us to service a larger sector of the local industry.”

The business has seen a surge in success with the help of GEP, surpassing its half-year revenue target a month early. It has saved costs, allowing it to procure more stock and grow its clientele. This resulted in the need for an expansion of operations, leading to the recruitment of new employees. 

“The impact was immediate in that we have our own forklift to load and offload containers and the truck can service more customers in a day whereas previously we had to make do with a 1t delivery vehicle. We employed more than 10 people and we have outgrown our existing building and are looking to purchase our own warehouse shortly.”

Motto: “I take every opportunity as if it’s my only and last opportunity I will ever get.”

Meet Voiceout Deaf (Pty). A vegetable production aiming to keep it fresh for you.

Voiceout Deaf

Being a woman entrepreneur comes with a unique set of challenges. Being an entrepreneur with a hearing impairment, however, would surely compound the difficulties faced in a tough economic environment.

“Being deaf and black woman make things more difficult because my challenges of being unable to express myself. The community always see deaf community as disable and unable to do thing for themselves.’’

Yet, the indomitable Victoria Matebogo, a deaf entrepreneur, is unfazed by these obstacles. Her enterprise, Voiceout Deaf (Pty) Ltd, is a black woman-owned business based in Mohlakeng.

Matebogo left her corporate job at Standard Bank to start a business that would cater for the deaf community. Providing deaf people with greater career opportunities was her goal.

“Often deaf are given simple jobs where they are not interacting with direct customers or managerial positions. That’s when I decided to start my own business and hire the deaf community and make a place where they can feel at home and express their skills.”

Founded in 2016 as a cooperative for deaf people, Voiceout Deaf was part of the Agri-park program initiated by the Gauteng Department of Agriculture and was converted to a private company by Matebogo in 2017.

As the Deaf Federation of SA reports an unemployment rate of 70% in the deaf community, her business is a welcome relief. It employs 41 people, including 9 deaf employees.

The company specializes in vegetable production and offers business development services and tour guide training to the deaf community. It produces vegetables that are sold to local households, such as Pick n Pay, SPAR, and to retail shops in and near Mohlakeng.

Voiceout Deaf lacked sufficient equipment and approached GEP for assistance. They applied for non-financial assistance and were assisted with Township Business Renewal for equipment purchase in 2018.

“GEP assisted me with garden tools. When I started agriculture, I didn’t have any working tools. I always had to borrow from other farmers. We also got support to buy bicycles for the deaf workers. The deaf had challenges travelling to work using public transport because of communication challenges.”

In 2021, the business received Covid-19 relief funds. It was able to hire more employees, attract more customers, and improve its capacity.

“The support made us to start working efficient since agriculture is seasonal business. Workers were able to come on time to work and not sharing tools.”

Matebogo’s outstanding performance has earned her awards from the Gauteng provincial government and the national Department of Agriculture.

She hopes to have her own farm in the future. “We currently farm on a leased farm. Having our own farm will give us total control and growth.”

The store has given many young locals the opportunity of first-time employment and currently employs 30 people who are mostly women.

Bra Todd Supermarket

“Bra Todd Supermarket

Founded in 1985 by the Dibate family, Bra Todd Supermarket is a family-owned grocery store in Boipatong Township, Vaal. The store is the brainchild of first-generation entrepreneurs, Bra Todd and Evodia Dibate. It has become a popular destination for township residents to purchase groceries and other goods.

The store has given many young locals the opportunity of first-time employment and currently employs 30 people who are mostly women.

“Most of our employees had this as their first formal employment, earning no less than the legislated national minimum wage with UIF & COIDA benefits, ” said Sammy Dibate.

He pointed out that Black-owned businesses in the townships face investor reluctance and lack of infrastructure, making it difficult to compete.

With the help of GEP, the business was able to acquire new equipment and expand. This growth allowed them to settle their debts by 2022, leaving the business and its assets without any debt or obligations, ready to move on to the next stage.

“We have allowed the business to grow organically as it matured. We hope to impact   more lives in communities as we scale up our business in the near future.”

In search of meaningful financial and business support to expand their business, Bra Todd Market approached many organizations and GEP was one of the institutions that provided assistance.

“We wanted a funding partner that would understand our vision, believe in our capabilities and be part of the journey as we grow to pursue both social and financial returns. GEP was instrumental in assisting our business to meet our equity contribution and fulfil the principal loan conditions.”

Our baby care products are specially formulated to help repair and protect the skin at a cellular level. They are fragrance-free, naturally anti-bacterial and contain anti-fungal formulae, but with all these capabilities, they remain gentle enough for newborns. What is most pleasing is that they have been quality tested.

Pure B Baby Care

Business: Pure B Baby Care

Sector: Baby Care Sector

Quote: “Our baby care products are specially formulated to help repair and protect the skin at a cellular level. They are fragrance-free, naturally anti-bacterial and contain anti-fungal formulae, but with all these capabilities, they remain gentle enough for newborns. What is most pleasing is that they have been quality tested” .

Phumzile Mthembu is the founder and owner of Ingcweti (Pty) Ltd trading as PureB Baby Care, based in Tembisa, Ekurhuleni. PureB Care is a natural baby skincare brand with products made especially for babies.

Phumzile was inspired by the struggles of her son who was diagnosed with eczema as a baby: “At these ages, the skin is still in the development phase and is very sensitive leading to skin irritations such as eczema, dermatitis and dryness. After trying many products, it dawned on me that there was an opportunity in the market to produce baby care products that are 100% natural and without harmful chemicals” she recalls.

At the time of her venture, Phumzile had already started dabbling in manufacturing. “I was making perfumes, and I was also training people in perfume making, but this (PureB) was far more than a business to me, it was about creating something that would greatly improve the quality of life for my child, and many other children.
Phumzile reached out to GEP for assistance with the branding of her products, marketing material, equipment, and raw materials. She received the support that has enabled her to steadily grow her brand.

“I had a good experience with GEP, they understood my vision, as well as what my business needed at that time. The initial stages of starting a business are extremely challenging, especially in the manufacturing sector where one competes with a number of established brands. Going to GEP helped alleviate some of these challenges, along with support from other government agencies, we have been able to our brand, and put our products on shelves” states Phumzile.

Phumzile’s goal is to be a leading manufacturer of quality yet affordable baby skin products. “Our baby care products are specially formulated to help repair and protect the skin at a cellular level. They are fragrance-free, naturally anti-bacterial and contain anti-fungal formulae, but with all these capabilities, they remain gentle enough for newborns. What is most pleasing is that they have been quality tested” she explains.

Her work has also gained recognition, amassing several awards including a top 3 placement in the Ernst and Young Impact Challenge, a continental competition. Phumzile was the only woman to make it into the top 5 of this competition.

Phumzile believes her entrepreneurial journey has only just begun: “I am working towards making my products the most preferred in the market, at the same time ensuring that I am running a sustainable business. I want to change lives, not only through the effectiveness of my product but also by creating opportunities for talented young people so we can be part of the journey of creating a world-class African product” she explains.

While she is focused on making a success of her venture, Phumzile also reveals that starting this business and seeing the impact it has had on her, her team and the community has inspired her to do more for children.

“I am now a qualified life coach and an author, I educate children on mental health because I believe it’s a neglected area in our communities which if we can get right, can help create a more stable society, with more rounded members of the community and better leaders. My book is called Khwezi, it is an affirmation book for children. I am busy with another bedtime story book” she concludes

Looking at where we started, and where are today, we are very proud of our progress, but we are looking to achieve far much more, reach many more homes, and create many more employment opportunities. I want to see us exporting our product and becoming an international brand.

Lemmechew Foods

Business: Lemmechew Foods

Sector: Food Sector

Quote: “Looking at where we started, and where are today, we are very proud of our progress, but we are looking to achieve far much more, reach many more homes, and create many more employment opportunities. I want to see us exporting our product and becoming an international brand”.

Katlego Suze took a plunge and left her corporate job at the beginning of 2020 to pursue her dream of owning and running her own business on a full-time basis. Little did she know that less than two months later, the whole world would have to come face to face with the none before imagined impact of COVID-19. “Had I known that Covid 19 would have such an impact on our lives, I don’t believe I would have left my job at the time I did. At the same time, I am still glad I did” she says. Despite venturing into full-time business at possibly the worst period, Katlego’s business, Lemmechew Foods has persevered.

Katlego started the business in 2018 as a home-based business in Atteridgeville with a focus on food manufacturing.

“I studied Hospitality Management, and I am a professional chef with a certificate from the Steyn Culinary School, but I spent most of my professional life as a Loans Consultant. You can only imagine how I yearned to venture into my passion throughout my eight years working as a Loans Consultant”, she recalls.

Lemmechew Foods started as a catering business for corporate and private events. The business also sold venison, and health shakes. They also conducted cooking classes for kids. In 2019 Katlego pursued an idea to produce Lemmechew chilli sauce in three flavours, manufacturing and bottling the products from her home. “I knew that there were many other producers of food sauces out there and consumers have loads of choices however as a trained chef, my focus and goal was to produce a product that would be of exceptional quality, a premium product at affordable rates, something tasty yet healthy, without preservatives and artificial flavour enhancing additives such as monosodium glutamate commonly referred to as MSG”, she says.

The biggest challenge that faced the business was a lack of adequate equipment which made it difficult to keep up with growing orders. “This made us reluctant to take large orders even though interest in our products was growing” explains Suze.

She approached GEP for support firstly from the Township Business Renewal (TBR) and later for Covid Relief Fund for Manufacturers. From the TBR fund, the business received a stove, sealing machine and cooker hood. Funding from the Covid Relief Fund was used to purchase ingredients and packaging materials such as bottles. In 2022 the business received assistance with marketing tools in the form of banners, tablecloths, and vehicle branding and has recently approached GEP for growth finance.

Katlego’s perseverance and eye for opportunity have paid off, the business now trades from the Sunderland Ridge Industrial Park. LemmeChew employs six full time staff and is in a process of employing product promoters. Their products are now found in large retailers including Shoprite, OK Grocer, and OBC Meat and Chicken among others. “The growing uptake of our product is a huge testament to its quality and the commitment of my team to produce world-class products. Shoprite has a network of over 2000 stores and that is a very big opportunity for us” explains Katlego.

Katlego has achieved impressive milestones, but still harbours dreams of greater success. “Looking at where we started, and where are today, we are very proud of our progress, but we are looking to achieve far much more, reach many more homes, and create many more employment opportunities. I want to see us exporting our product and becoming an international brand”, she concludes.