Case studies: South Africa

Providing a community service in Vaal River

Cell phone communication plays an important role for communities in South Africa where land line services are scarce. In 2003, Joseph Magetse, a retired principal of the Sizakalane ABET centre in Vaal River, approached the Masakhisane Board with a business proposal to set up a cell phone bureau, or one ‘set’ comprising five instruments in terms of standards applied by Cell C, his selected service provider. He was granted a loan of R3,500, and set up his bureau, operating from one cubicle.

His business has grown steadily, both in terms of turnover and in the employment opportunities he has been able to provide to other community members.

Initially manning the phones himself for a 12-hour workday, he was able to employ two people during 2003. In 2004, he acquired four more sets, or 20 telephones, which provided employment to eight people. Three of his five sets operated at the Klerksdorp taxi rank, and two in nearby Taung.

In 2005, he acquired 12 MTN telephones, employing four people, and in 2006 he moved to Vodacom and bought 10 telephones (MTN and Vodacom sets take five and six people respectively). As at the end of 2007, Joseph operated a total of 47 telephones from three service providers and employed a staff of six. Average turnover for the year was R65,000 per month.

During 2007, he diversified his business and established a car-wash in Taung. The site has been identified and roofed, with delivery of machinery expected early in 2008. Joseph ultimately plans to employ 10 people in the car-wash.

Joseph’s ambitions do not stop there. Looking ahead, he plans to extend his telephone business by setting up a franchise to provide emerging small business entrepreneurs with the finance and resources to set up their own cell phone business.

“AngloGold Ashanti has played a big part in my life,” he comments. “They helped me to take the first steps to set up my businesses, and now I have spread my wings and become independent. From the money I earn, I pay my bond of R2,000 per month, the instalments on two cars, amounting to R4,000, pay fees for two children at the Christian Brothers College in Klerksdorp, and pay all my business overheads. With AngloGold Ashanti’s support, I’m looking forward to expanding my business in 2008.”