Gauteng: Gauteng driving positive change in township economy

6th December 2016

Gauteng: Gauteng driving positive change in township economy

Gauteng Premier David Makhura

Since the fifth administration took office in 2014, Gauteng Provincial Government has provided financial and non-financial support to 25 526 Small, Medium and Macro Enterprises (SMMEs), township enterprises and co-operatives.

Presenting the third Political Report, Premier David Makhura said the province has been taking decisive steps to revitalise and mainstream the township economy.

“There is ample evidence to demonstrate that, step by step, we are succeeding in catalysing sustainable and meaningful economic activity in our townships.  Already all linen contracts in our hospitals have been awarded to women owned enterprises a number of whom are based in the townships,” said Makhura.

He further noted that the provincial government was committed to spend 30% of its goods and services budget on procuring from township suppliers and enterprises.

At the end of the second quarter of this year, Gauteng had already exceeded the 18% target for 2016/17, and it spent over R6.8 billion procuring goods and services from 1 600 township suppliers.

Municipalities have also spent more than R4.2 billion on procuring goods and services from township enterprises just in the 2015/16 financial year.

In addition, Gauteng is currently developing over 700 township based suppliers, fitting them into its supply chain and introducing them to the provincial government’s large suppliers for absorption into their value chains.

“I am happy to also report that we have begun working on assessing the impact and how we can better utilise our significant procurement muscle to support localisation and industrialisation,” he said. 

Going forward, Makhura said Gauteng will be deliberate in using such significant procurement spend to boost localisation, reindustrialisation and the revitalisation of the township economy.

Issued by Gauteng Provincial Government