Issued by: Gauteng Provincial Government
African Youth Chamber Inaugural Convention, 10 October 1999 Midrand
Distinguished Guests
Ladies and Gentlemen
I am honoured to be a guest at this important launch of yet another initiative that will add vibrancy to the shaping of our country’s economy. I thank you for inviting me here talk to you about some of the things our government is doing to regarding econom ic growth, especially in the area of Small Medium and Micro Enterprises.
Our government has made numerous calls for people to start initiatives that would yield the creation of jobs for the majority of unemployed people in the country. The launch of the South African Youth Chamber is in line with such calls and it is my belief that its activities will bear the fruits envisaged by most destitute youth in our country. The Gauteng Provincial Government expresses its full support for this initiative and invites you to work with us in the accomplishment of your objectives, which we s hare. Small Medium and Micro Enterprises provide the opportunity for previously disadvantaged groups in our society to unleash their economic potential and create for themselves and their communities an improved standard of living. In this sense this secto r is of fundamental importance in the realisation of economic growth in our province.
SMMEs have always been compounded with lots of difficulties, especially as regards the accessing of financial resources and management of business activities. In recognition this dilemma, the Gauteng Provincial Government organised a SMMEs conferenceearly this year, which was attended by various stakeholders, among them financial institutions, mangers and prospective entrepreneurs. The resolutions that emerged from the conference present a greater challenge for the variety of economic stakeholders in our pr ovince. At the end of the conference the government pledged to maintain its role the development of SMMEs in the province, which is to create an enabling environment within which this sector can operate, as well as boosting opportunities and creating busin ess linkages between small and big businesses.
As such the Provincial Department of Finance and Economic Affairs will continue to strengthen our advisory and support institutions, which have been created to service the needs of SMMEs. We will therefore work to maximise the impact of our Local Business Service Centres, the primary objective being that of making sure that people are made aware of opportunities and also educated about the complex procedures involved in business ventures.
Consistent with the provisions of the constitution, our government has also utilised government procurement as a means of empowering previously disadvantaged citizens of the province. The Gauteng Tender Board has been central in ensuring that as much provi ncial procurement as possible is done through small businesses and businesses owned by disadvantaged groups and the youth.
Apart from all these, government has also provided training to individuals who are involved in this sector. Of those trained, reports have shown that they have indeed prospered in their individual businesses, the spin-off employment of more people and cont ribution to the growth of the economy.
We have been able to achieve these primarily because we have received tremendous support from the private sector. I must however hasten to add that the biggest obstacle in these endeavors has been the resistance by some financial institutions to change the ir lending policies so that much more investment and concessions are made in favour of the SMME sector.
In line with the transformation of our society we ought to make continuous calls for these institutions to begin to change their policies consistent with a changed society - a democratic South Africa. As a demonstration of our commitment to the speedy deve lopment of this sector, the Gauteng Provincial Government has developed criteria which require banks that are competing for the provincial banking sector tender to outline their programmes to contribute in the development of this sector.
The Gauteng Provincial Government is committed to a clean, effective and transparent government. While we will work with small business in economic development, we will arrest, prosecute and ban from future tendering any individual or company that is found to have paid bribes to secure a government tender. It is imperative that your chamber joins us in promoting a responsible and accountable business ethic.
You also need to encourage skills development programmes for your members as well as their workers. A skilled manager and workforce are better placed to boost productivity.
I wish you all the success and once more encourage you to form partnership with us and other actors in civil society and business.
Thank You
Issued by Thabo Masebe
Spokesperson for the Premier
Tel: 082 551 4945