The Gauteng Provincial Government (GPG) believes that the success
of broad-based black economic-empowerment (BBBEE) in the province
is inextricably linked to the development of small, medium and
micro enterprises (SMMEs), it said yesterday, at the presentation
of the province’s draft BBBEE strategy.
Gauteng Health MEC Dr Gwen Ramokgopa (standing in for Finance & Economic Affairs MEC Paul Shipokosa Mashatile) said that the GPG had committed itself, not only to meeting the objectives and targets of the national BBBEE policy and legislation, but also to use the BBBEE strategy to give impetus to the province’s growth and development strategy through emphasis on the development of SMMEs and a focus on labour-absorbing economic growth.
“Twenty per cent of the national and provincial population cannot realistically be expected to continue to carry the rest of the economy in a sustainable way,” she said.
Ramakgopa also referred to Premier Mbhazima Shilowa’s announcement earlier this year that the GPG had set itself the preferential procurement target of 80% by 2014, as well as achieving an economic growth rate of 8% during the same period.
Further, Shilowa had committed the government to releasing the final version of its BBBEE strategy by the end of July.
Ramokgopa said that she was confident these goals would be met, but that it would only be possible through sustainable partnerships between all stakeholders, including government, the private sector and civil organisations.
In presenting the draft strategy, Business Unity South Africa’s Andrea Brown said that the strategy had been compiled with a view to increasing ownership, control and other economic participation by previously-disadvantaged people in the province, as well as to substantially decrease income inequalities in the region.
The strategy document proposed BBBEE preferential procurement targets of 70% and SMME procurement of 20% for the GPG by 2009.
Specific targets would be broken down yearly for each department and would be included in performance contracts of heads of departments and top management.
Suppliers would be evaluated on the basis on the Preferential Procurement Act, and then the Department of Trade and Industry’s generic scorecard, once it had been finalised.
The provincial government would increase its capacity to support supplier development through various interventions, including stepping up tender accessibility, an early-payment policy for SMMEs and a stated strategy of targeting SMMEs.
Proposed human-resources development targets had been drawn up, to be achieved by 2009.
These included: 80% black people in senior management; 40% black women in senior management; 80% black people in other management; 40% black women in other management and 4% disabled people in the total workforce.
Skills development was also a key focus, with 1% of the yearly payroll to be spent on training, and 8% of staff to be involves in learnership programmes, also by 2009.
Brown reiterated the importance of SMME development to economic growth.
The Gauteng Department of Finance and Economic affairs had therefore launched the Gauteng Enterprises Propeller (GEP), with a mandate to provide both financial and nonfinancial assistance to SMMEs in the province.
GEP had allocated R60-million a year for financial aid and R15-million a year for nonfinancial support.
Further, SMME priorities would continue to be embedded in the province’s sector-growth plans and procurement priorities.
The draft BBBEE strategy also called attention to the need and opportunities for partnerships between government and the private sector in support of SMME initiatives, Brown said.
Key areas for implementation of BBBEE by the GPG included education, health, housing, agriculture and land use, trade and services, tourism and infrastructure expansion and investment.
In the area of infrastructure development, the GPG would catalyse growth of the transport and construction sectors, simultaneously creating opportunities for BBBEE companies and SMMEs.
The government also committed itself to leveraging substantial projects, such as the construction of Gautrain, to provide meaningful opportunities for black and SMME companies.
A target of 40% black ownership had been proposed for public private partnerships.
A BBBEE scorecard had been drawn up for the GPG, and compliance would be monitored by the Department of Financial and Economic Affairs.
Gauteng Health MEC Dr Gwen Ramokgopa (standing in for Finance & Economic Affairs MEC Paul Shipokosa Mashatile) said that the GPG had committed itself, not only to meeting the objectives and targets of the national BBBEE policy and legislation, but also to use the BBBEE strategy to give impetus to the province’s growth and development strategy through emphasis on the development of SMMEs and a focus on labour-absorbing economic growth.
“Twenty per cent of the national and provincial population cannot realistically be expected to continue to carry the rest of the economy in a sustainable way,” she said.
Ramakgopa also referred to Premier Mbhazima Shilowa’s announcement earlier this year that the GPG had set itself the preferential procurement target of 80% by 2014, as well as achieving an economic growth rate of 8% during the same period.
Further, Shilowa had committed the government to releasing the final version of its BBBEE strategy by the end of July.
Ramokgopa said that she was confident these goals would be met, but that it would only be possible through sustainable partnerships between all stakeholders, including government, the private sector and civil organisations.
In presenting the draft strategy, Business Unity South Africa’s Andrea Brown said that the strategy had been compiled with a view to increasing ownership, control and other economic participation by previously-disadvantaged people in the province, as well as to substantially decrease income inequalities in the region.
The strategy document proposed BBBEE preferential procurement targets of 70% and SMME procurement of 20% for the GPG by 2009.
Specific targets would be broken down yearly for each department and would be included in performance contracts of heads of departments and top management.
Suppliers would be evaluated on the basis on the Preferential Procurement Act, and then the Department of Trade and Industry’s generic scorecard, once it had been finalised.
The provincial government would increase its capacity to support supplier development through various interventions, including stepping up tender accessibility, an early-payment policy for SMMEs and a stated strategy of targeting SMMEs.
Proposed human-resources development targets had been drawn up, to be achieved by 2009.
These included: 80% black people in senior management; 40% black women in senior management; 80% black people in other management; 40% black women in other management and 4% disabled people in the total workforce.
Skills development was also a key focus, with 1% of the yearly payroll to be spent on training, and 8% of staff to be involves in learnership programmes, also by 2009.
Brown reiterated the importance of SMME development to economic growth.
The Gauteng Department of Finance and Economic affairs had therefore launched the Gauteng Enterprises Propeller (GEP), with a mandate to provide both financial and nonfinancial assistance to SMMEs in the province.
GEP had allocated R60-million a year for financial aid and R15-million a year for nonfinancial support.
Further, SMME priorities would continue to be embedded in the province’s sector-growth plans and procurement priorities.
The draft BBBEE strategy also called attention to the need and opportunities for partnerships between government and the private sector in support of SMME initiatives, Brown said.
Key areas for implementation of BBBEE by the GPG included education, health, housing, agriculture and land use, trade and services, tourism and infrastructure expansion and investment.
In the area of infrastructure development, the GPG would catalyse growth of the transport and construction sectors, simultaneously creating opportunities for BBBEE companies and SMMEs.
The government also committed itself to leveraging substantial projects, such as the construction of Gautrain, to provide meaningful opportunities for black and SMME companies.
A target of 40% black ownership had been proposed for public private partnerships.
A BBBEE scorecard had been drawn up for the GPG, and compliance would be monitored by the Department of Financial and Economic Affairs.
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