Official Opening of Nomzamo Community's Business Centre

Nomzamo is an informal settlement of approximately ten thousand (10 000) residents, located on the left hand side of the N2 route from Somerset West to Caledon. It falls under the Helderberg Sub Council of the City of Cape Town.

The Business Centre, situated just outside Somerset West, has been built in phases since 1999 and has been in operation since phase one (1) was completed at the end of 1999. Phase one (1) included the installation of electricity meters, water connections and telephones as well as the construction of a concrete structure to host six (6) containers and ablution facilities.

The final phase was completed in November 2009 and will make the centre not only self-sustaining, but profitable for the Nomzamo Community Trust - its custodian in partnership with the City of Cape Town. The City of Cape Town's total investment for the project amounted to six million two hundred and thirty two thousand rand (R6 232 000).

The facility provides premises for small-scale entrepreneurs seeking to enter the formal economy. The business centre now comprises of, amongst many others, a Shoprite (U-Save) store, two dressmakers, a post office, ATMs, a doctor's surgery, a hardware store, driving school, and an Internet café. The main tenant, U-Save, will ensure that these entrepreneurs are exposed to clients from a sustainable market environment.

It is envisioned that the profits will be reinvested by the Nomzamo Community Trust in the community to maintain and manage the centre. The profits will also be further invested into the development of an orphanage, old age home and a clinic.

"It is through initiatives such as the Nomzamo Business Centre that true urban regeneration can be achieved. The engagement and partnership with the community was integral to the completion of this project," said Executive Mayor, Alderman Dan Plato.

The Mayor and other City dignitaries will inspect and officially open the newly completed Nomzamo Business Centre on Saturday. All media are welcome to attend.

Date: Saturday 17 April

Time: 10:00 - 12:00

Venue: Nomzamo Community Hall

Directions: Take the N2 from Cape Town, pass Somerset West towards Sir Lowry's Pass. Turn right at the signpost for Chris Nissen Park/Lwandle. At the traffic circle, turn right and proceed down Simon Street at the intersection with Michael Street. The facility will be on your right hand side.

Background:

The latest census, conducted in 2001, reflected that the Nomzamo community was deprived in terms of economic power, skills and knowledge in the past. To address this, the City launched a pilot project in 1998 to fund community-based job creation projects to establish small and micro businesses in the community, thereby creating a Business Centre in Nomzamo.

The cost of establishing a Business Centre was initially estimated at just over two million rand (R2 000 000), but it was later ascertained that this amount would not cover the full costs of the Centre. It was therefore decided to establish the Nomzamo Community Trust, a partnership between the community and the City, which allowed the community to be involved in the development of their business centre on one thousand square meters (1000 m2) of land.

Once the Trust was established in June 1999, a long term development lease was signed with the City. The lease agreement saved the Trust the cost of purchasing land and the Trust was enabled to act as a developer. Furthermore, members of the community were involved in building the Business Centre themselves. The Trust also accepted the City's offer to phase the project in over a period of four years, thereby overcoming the obstacle of the availability of funds.

Funding for the second phase, which started in 2000, amounted to two hundred thousand rand (R200 000). Paving of the central square area and the construction of a raised platform for promotions and entertainment, seating for customers, as well as two additional shops were opened during this phase.

The next phase commenced in 2002, when the community constructed another seven small business premises with funding of nine hundred and twelve thousand two hundred and sixty three rand (R912 263). The project was completed in November 2009.

Issued by:
Communication Department
City of Cape Town