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Cape Town – Ikamva Investment Holdings seeks to revive the Khayelitsha economy, where residents already had a disposal income sitting at R9bn in 2013, according to research by the Stellenbosch University Business School.
Founder and CEO of Ikamva Investment Holdings Luvuyo Jongile told delegates the company launch that it has developed a 30-year plan for Khayelitsha, which they will present to the executive mayor of Cape Town, Patricia de Lille, in November this year.
"We realised that as black people we live from hand to mouth and earning a salary is not sustainable. We want to create long-term wealth by preserving the disposal income of the township economy, starting in Khayelitsha," Jongile told Fin24.
"The aim is improve the infrastructure, education system and health as well as eradicating social ills that plague our township," Jongile said.
Khayelitsha is also plagued by unemployment and high levels of alcohol consumption among the youth. Jongile said Hennessy (the French alcohol brand) conducted a study which found that Khayelitsha consumed more of its brand than in any other part in the world - and more than South African brands.
Ikamva has aspirations to buy gas stations and build houses for the gap market - catering for those who earn too little to qualify for a bond, but earn too much to qualify for a government subsidy. The company also wants to buy franchise businesses focusing on retail, targeting well known fast food establishments such as McDonald's and KFC among others. Ikamva also sees a gap in the transport sector and aims to bring Uber to Khayelistha.
"We have met with the MEC for housing in the Western Cape, Bonginkosi Madikizela, and the MEC for economic development, Alan Winde," Jongile said.
Khayelistha is one of the largest townships in South Africa. Although it was established for only 250 people, it now has a population of 2.4 million and everyone is fighting for the same resources.
Each member of Ikamva has committed to contribute R1 000 per month for the next three years. Currently there are 55 members.
Ikamva is already sitting with R350 000 cash capital invested with Allan Gray, which plays the role of "mentorship partner". The company's aim is to grow enough equity and start investing.
Jongile says "we need to participate in the economy and take responsibility". He not only believes in advocating for change, but to take action and be the change he hopes to see.
Jongile (33) is married and has a six month old baby boy. He is originally from Lady Frere in the former Transkei and arrived in Khayelistha in the 1980s. He's been a leader since his youth. He played tennis - a sport that is not common among black children - and went on to obtain provincial colours both in primary and high school. Jongile also started a church campus ministry and became the chairperson.
(Ikamva Investment Holdings' shareholders and the executive board with CEO Luvuyo Jongile (back row far right). Picture: supplied.)
Ikamva is made up of young professionals, mostly from Khayelitsha and the surrounding areas.
The company was officially launched on October 2 2016 at the LookOut Hill multipurpose centre in Khayelitsha. The launch also comprised of an honouring of the Khayelitsha entrepreneur extraordinaire, Luvuyo Rani, who started his internet business, Silulo Ulutho Technologies, from the boot of his car. Rani has won numerous awards for his endevours to bring internet connectivity across the Western Cape townships, with franchises in the Eastern Cape Province.
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