Development finance and SMME support

The transition to a green economy may bring opportunities.

With the transition to a greener economy a key trend, the Provincial Government of Mpumalanga wants to leverage the coming change in the economic landscape to benefit small businesses.

In partnership with the Presidential Climate Commission, the Climate Investment Fund and the World Bank, opportunities are being explored for SMMEs and co-operatives to participate in the green economy.

The Premier’s Youth Development Fund allocated R92.3-million to 36 companies in the financial year to February 2023 in sectors such as agriculture, manufacturing, mining and transport and logistics. Since it was launched, the fund has disbursed R140-million to businesses in each one of the province’s 17 local municipalities. In order to further spread the reach of the fund, roadshows are to be held in rural areas.

The provincial government is committed to allocating 30% of the provincial procurement budget to enterprises owned by women, youth and people with disabilities.

Research done by the Small Enterprise Development Agency (Seda) shows that a high percentage of SMMEs in Mpumalanga are in the trade and accommodation sector. Whereas the national figure is about 43%, in Mpumalanga it is closer to 50%. Seda supports several incubators in the province: Furntech, furniture manufacturing, White River; Mobile AgroSkills Development & Training (MASDT), agricultural training, Nelspruit; Mpumalanga Stainless Initiative (MSI), stainless-steel processing, Middelburg (with Columbus Stainless); Timbali floriculture, Nelspruit; Ehlanzeni TVET College Rapid Incubator Renewable Technologies, Nelspruit. TVET stands for technical and vocational education training.

The Gert Sibande Centre for Entrepreneurship in Evander hosts a Rapid Incubator in partnership with Seda. The aim is to promote and develop young entrepreneurs in the province. The Centre was established in 2015 through a partnership between the Gert Sibande TVET College, the DSBD and the University of Johannesburg.

Entrepreneurship Development is one of the subjects on offer at 90 Youth Development Centres which are being established. Sappi’s extensive supply chain allows for a varied and extensive enterprise supplier development

Gert Sibande TVET College: www.gscollege.edu.za

Mpumalanga Economic Growth Agency: www.mega.gov.za

Mpumalanga Stainless Initiative: www.mpstainless.co.za

Small Enterprise Development Agency: www.seda.org.za programme which supports 37 companies, which in turn employ more than 300 people.

Other companies supporting SMMEs through their buying chain include Woolworths and Anglo American. Woolworths funds TechnoServe to ensure that small tomato growers can grow produce that will meet the demanding standards of the retailer, and to help them expand production.

Premier Refilwe MtshweniTsipane has paid tribute to private companies for providing employment opportunities to local people and for continuing to support small and emerging businesses. Bursary programmes and training programmes were also acknowledged. The companies mentioned were Sasol, Exxaro, Eskom, Sappi, Columbus Stainless, Samancor, RCL foods, Mondi, Safcol, Glencore, Standard Bank, Absa Bank, Nedbank and First National Bank. ■