The Western Cape Department of Economic Development and Tourism is investigating potential sites in the province’s townships at which it may establish a Bandwidth Barn information and communications technology (ICT) business incubator, Western Cape Finance, Economic Development and Tourism Minister Alan Winde said on Thursday.

There was already a successful Bandwidth Barn ICT innovation hub in Woodstock, in Cape Town.

The establishment of an incubator in one of the province’s townships would be a joint project between the Western Cape government, the Cape IT Initiative and the City of Cape Town, Winde said, adding that the department had already inspected potential sites in Nyanga and Khayelitsha. 

“We are scouting for locations and we hope to launch the new incubator early next year. It is our plan to take these services to the areas that need them most. Townships have higher rates of unemployment and this is why we have these targeted interventions to make a real difference in people’s lives,” he commented.

In addition to the planned new site, the Western Cape was also funding the establishment of an ICT incubator in George.

“Business incubators are a great environment for entrepreneurs. By sharing resources, they are able to keep their costs low. Within the hub, they also have access to guidance from experienced business mentors,” he said.

Winde added that evidence proved that the concept was making a significant impact on the success of business start-ups.

“In the past year, the Bandwidth Barn assisted 89 businesses, the majority of which are still bringing growth and jobs to our economy. It’s estimated that these entrepreneurs would have had just a 20% chance of survival without this assistance.

“Further, revenue generated by Bandwidth Barn graduates has increased by 142% between 2006 and 2011,” Winde said. 

Meanwhile, Winde earlier this year announced the establishment of the African Incubation project aimed at investigating partnerships between Western Cape-based incubators and African counterparts.

These partnerships could potentially be headed by Bandwidth Barn, which would lead to the establishment of Bandwidth Barns in other African countries.