Businesses not drying up in Karoo

Over the past 18 months, the rural economy and particularly that of the Eastern Cape, Karoo and Kalahari, has seen significant investment into businesses.

"Besides the roll-out of big name stores such as Pick 'n Pay, Spar and other chain stores in major towns such as Beaufort West, Cradock and Graaff-Reinet, many new businesses have emerged to cater for the unique rural opportunities available, while in towns with smaller economies outlets such as Pep Stores have expanded and upgraded their shops," says Wayne Rubidge, area principal for Pam Golding Properties (PGP) in the Karoo/Kalahari.

"In many towns a new trend among existing businesses is the relocation of their premises to new and emerging business areas in order to capitalise on the concentrated and increasing activity in these areas. This shift in CBDs of towns is clearly evident in the smaller Northern Cape town of Richmond, where the business district has merged with the tourism area and relocated to the entrance of the town just off the N1 - a move which has served to increase traffic through their doors.

"In addition, the fact that many towns are provided with leiwater sourced from fountains has stimulated the emergence of a garden produce industry where you can buy a wide variety of local and organic produce in the local trading stores," he says.

Nick Scholtz, the PGP Karoo administration manager, says the array of new business services offered in many towns now reflects the new economies and demographics of these towns.

"Like the big urban centres many new businesses have opened or relocated to once residential areas or to areas that offer more exposure such as the entrance or in locations where a national road passes through the town. Towns such as Aberdeen and Prieska now entice many a traveller to venture off the national road and explore many of the new products and services that can be offered in these once sleepy towns.

"With the relocation of many of the towns' commercial centres the former CBD's now offer numerous opportunities for businessmen focusing on the emerging markets in these towns. Many shops now offer extended trading hours and products that cater for this new market with the result that it is not uncommon for towns to now have more than one commercial centre - thereby reflecting the diverse opportunities which exist for businesses. These include the tourism sector, farming community, local residents and niche businesses such as taxidermies, adventure stores etc.

"Coupled with new facilities now being provided in towns for conferences, weddings and other gatherings, this regeneration has stimulated a once ageing economy," says Scholtz.

He adds that for business seeking commercial premises in Graaff-Reinet for example, rentals vary, however, in a good location such as Church Street you will pay around R30 per square metre.

"Some unique business premises are for sale, starting from R400k upwards. For this price businesses such as small general dealers - including premises - can be purchased. A number of filling stations, butcheries and other businesses are also on offer, including prime premises with leases available," says Scholtz.

For more information contact Nick Scholtz on 049 892 3495.

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