Department of Economic Development's R650-million procurement expenditure to boost township economy

| 0 Comments

 

lebogangMaile.jpgThe Department of Economic Development (DED) is finalising a partnership that will pump R650-million procurement expenditure into various townships across Gauteng, said Gauteng MEC for Economic Development, Environment, Agriculture and Rural Development, Lebogang Maile.


The partnership is spearheaded by retailer MassMart and will see the establishment of 500 retail shops within Gauteng townships. The project will be piloted across six Gauteng townships: Katlehong, Attridgeville, Sharpville, Randfontein, Alexander and Khutsong.


Unlike the prevailing trends that define expansion of retail businesses in townships, entrepreneurs operating in Gauteng townships will have a significant share in this development as owners, said Maile, speaking at the Department of Economic Development’s budget vote on 23 June 2015.


The R650-million spend is part of a larger R1,3-billion budget that the department is managing to help one-man and micro businesses to enter retail supply chains.


In a further partnership, the DED is striking a deal with the retailer Pick ‘n Pay that will secure spaza shops a foothold into Pick ‘n Pay’s distribution channels, giving them access to a variety of stock and merchandise at competitive pricing. Spaza shop owners can pool their resources and take advantage of bulk buying while also giving township entrepreneurs opportunities to participate in the Pick ‘n Pay franchise model.


Furthermore, to fulfil the commitment to allocate 30% of government’s procurement spend to township businesses, the DED has assisted many township businesses with ‘government-procurement readiness’ training, which entails information sharing about procurement opportunities, verification of BBBEE status, tax clearance and registration as suppliers on the provincial database.


Only 35% of vehicle components are produced locally


Meanwhile, despite considerable investment in South Africa’s automotive sector, import penetration in the industry is still too high - only 35% of the components and parts used to manufacture vehicles in South Africa are produced locally. Gauteng automotive companies spend nearly R8-billion a year importing automotive parts, components and accessories.


In partnership with Nissan, Gauteng launched the country’s second incubation centre in March this year. Through this facility, eight black-owned SMMEs will get an opportunity to supply parts and components for the Nissan Pick Up truck which is scheduled for production in 2018. An investment of R22-million was secured from the jobs Fund for this project.


The initiative is aligned with the government’s plans to increase black participation in the automotive industry. In addition, Nissan will be investing R200-million for this project which will create 27 000 jobs in the medium to long term.


The Automotive Industry Development Centre’s automotive supplier efficiency programme is a vital component of the DED’s plans to ensure the industry’s expansion with increased local manufacturing. Twenty two component suppliers will be enrolled for training on equality, costing, productivity improvement and supply stability. SMMEs engaged in the manufacturing of bumpers, foundry consumables, seatbelts, windscreens, airbags and moulded plastic components will be targeted for this programme.
 

Leave a comment


 

 

Career opportunites

Planner

  • <500 000 Gauteng Operations, Planning & Inventory Supply Chain
Are you looking for new career opportunities as

Procurement Specialist

  • >500 000 Gauteng Procurement Officer / Specialist Strategic Sourcing Supplier / Business Development
As a specialist Supply Chain recruiter, I am

Logistics Controller

  • <500 000 Gauteng Logistics & Warehousing Procurement Officer / Specialist
Seeking dynamic up and coming candidates looking for

Supply Chain Manager

  • >500 000 Permanent Procurement Management Supply Chain Western Cape
As a specialist Supply Chain recruiter, I am

Business Process Specialist

  • <500 000 Gauteng Procurement Consultant Procurement Officer / Specialist Supply Chain
A company within the financial services sector is

LOC Procurement Manager

  • Gauteng Permanent Procurement Management Procurement Officer / Specialist
Your Responsibilities: Job Purpose To be the interface ...More

Account Manager

  • >500 000 Procurement Officer / Specialist Supplier / Business Development Western Cape
Key Performance Areas:• To ensure that all aspects

Consultant

  • >500 000 Gauteng Procurement Consultant Strategic Sourcing Supply Chain
Key Performance Areas:• You'll be concerned primarily with

Commercial Buyer

  • <500 000 Buyer Contracts Procurement Officer / Specialist Western Cape
A well-known Mining company is seeking the services

Technical Buyer

  • <500 000 Buyer Contracts Procurement Officer / Specialist Western Cape
A well-known Mining company is seeking the services

Business Development Executive

  • >500 000 Gauteng Supplier / Business Development
A retail solutions company is seeking a New

Financial Manager

  • >500 000 Contract Operations, Planning & Inventory Procurement Management Western Cape
Looking for an unemployed CA (SA) in Cape

Chief Financial Officer

  • >500 000 Gauteng Operations, Planning & Inventory Procurement Management
An exciting opportunity exists for a CFO with

Procurement Consultant

  • >500 000 Gauteng Procurement Officer / Specialist Strategic Sourcing
Key Performance Areas: A profound knowledge of sourcing

Commodity Specialist: IT

  • >500 000 Commodities Gauteng Procurement Officer / Specialist
Key Performance Areas:• Effectively applies acquired technical/functional skills

Senior Consultant

  • >500 000 Gauteng Projects / Category Management Supplier / Business Development
Key Performance Areas:• Adheres to best practice processes

Logistics Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Procurement Management
Key Performance Areas:• Manage warehousing and distribution 3PL's

Head of Franchise Network

  • >500 000 Contracts Operations, Planning & Inventory Western Cape
The opportunity to work for a multinational retail

National Driver Manager

  • >500 000 Analyst Contracts Logistics & Warehousing Operations, Planning & Inventory Western Cape
The opportunity for an extraordinary individual to join

Commodity Specialist: Industries

  • >500 000 Commodities Gauteng Procurement Officer / Specialist
Key Performance Areas:• Under the guidance of the