Scrutiny Over Riversands Incubation Hub: A Boon for Small Businesses or Developer Profit?

Nestled near the bustling neighborhood of Fourways, Johannesburg, lies the Riversands Incubation Hub, a sprawl of 180 business premises meant as a breeding ground for small to micro-enterprises. Launched in 2014 with the grand vision of stimulating local entrepreneurship and job creation, the hub stands as a joint endeavour between the national treasury’s Jobs Fund and luxury property developer Century Property Development. Yet, the true beneficiaries of this costly venture have come into question as the original intent for community upliftment seems to be overshadowed by developer profits.

Costing over R925 million, with R405,971,300 contributed by the Jobs Fund, the hub was conceived to bolster up to 178 businesses from the nearby, underserved township of Diepsloot – an initiative that warranted both public interest and public funds. However, the hub has faced significant scrutiny with less than a third of its companies originating from the target township. Moreover, the employment of Diepsloot residents by businesses within the hub remains unmonitored, raising concerns about the project's real impact on the local community.

Yet the management, including Mark Corbett, CEO of Century Property Development, maintains the role of the hub as the company’s "massive corporate social investment project". With the hub hitting only 70% of its permanent job creation target, Corbett, alongside Najwa Allie-Edries, head of the Jobs Fund, suggests that the full employment potential hinges on private development adjacent to the hub. Century has already embarked on the expansive Riversands Commercial Park which is expected to yield additional economic benefits.

Keeping an eye on these developments are various stakeholders, such as Kristin Kallesen of the Greater Kyalami Conservancy Group (GECKO). Skepticism arises from misaligned objectives, as evidenced by the business park's geographical distance from Diepsloot, thus preventing genuine accessibility for township businesses. The hub's function as a business park rather than an incubation center is held as a primary concern, stimulating debate over whether it genuinely serves the underprivileged or if it's molded to suit the property developer's agenda.

The hub's operational side – subsidized rent, business development support, and office amenities – is managed by the Riversands SMME Incubation Hub NPC, funded by both the Jobs Fund and Century through rent subsidies. Despite these provisions, occupancy issues prevail, prompting an extension of the incubation period from the initial three years to four. The broad range of businesses, from car workshops to TV production outfits, benefits from mentorship, yet doubts hover regarding their contributions to the Diepsloot community.

Environmental issues also cloud the hub's operations. GECKO has engaged with Century over environmental concerns and opposed the utilization of the hub’s amphitheatre, The Canvas, for private events. Retief and Corbett contend that such activities are essential for sustainability, though profits generated for hub businesses from these events have not been clarified.

Power dynamics come to play as control rests with Century, which holds the land and facilities ownership. The Riversands Incubation Hub NPC board is mainly composed of Century representatives – a point that raises eyebrows regarding their alignment with the original mission of enabling disadvantaged SMMEs.

While the Jobs Fund proclaims the hub as a model of private-public partnership success, the concealment of financial details under confidentiality raises transparency questions. The lack of ownership by the state, despite significant financial input, adds complexity to the narrative.

With national treasury's Jobs Fund designed to promote innovative job creation avenues, the journey of the Riversands Incubation Hub remains fraught with contention. As it operates under a contractual veil of confidentiality, the true efficacy of this half a billion Rand project remains in the balance. As ambitions for job creation and community empowerment are held under scrutiny, the narrative unfolding at Riversands continues to prompt significant debate regarding the roles and responsibilities of public and private stakeholders in South Africa's socio-economic landscape.