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DTI launches pilot enterprise development programme

DTI launches pilot enterprise development programme

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27th October 2015

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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The Department of Trade and Industry (DTI) on Tuesday launched a two-year pilot programme aimed at revitalising South Africa’s industrial parks, establishing pilot specialised industrial facilities (SIFs) and supporting the integration of local economic development (LED) to bolster small business enterprises in the country.

The R22-million Enterprise Development pilot programme, implemented by the DTI and the Department of Small Business Development (DSBD), which would run until December 2017, was aimed at dealing with several access and technology challenges faced by small, medium-sized and microenterprises (SMMEs).

Funded through the Middle Income Grant of the African Development Bank and in partnership the National Treasury, the programme would drive three main components, the DSBD acting deputy director-general Lindokuhle Mkhumane said on Tuesday.

Addressing delegates at the launch in Pretoria, he explained that the first component of the pilot project comprised the revitalisation of the current nonperforming industrial parks around the country.

Five State-owned industrial parks, mostly located in townships, would be piloted during the trial period, with a detailed preinvestment study (DPIS), including a bankable project with detailed designs and financing options on the upgrade and expansion of the parks, set to get under way soon.

This component, which would cost around R5-million, would see the development of a strategic plan to ensure the parks play the role “they were initially designed to play”, namely boosting manufacturing by SMMEs, job creation and poverty reduction in targeted municipalities.

“The DPIS will comprise technical, environmental, institutional, financial and economic analysis, as well as the design of bankable industrial park development subprojects to facilitate investment decisions,” Mkhumane said.

The study also aimed to unpack the strategies required to increase the productivity of industries, foster inclusive economic growth particularly poorer regions, promote gender equality, reduce the cost of doing business and increase employment creation by SMMEs.

The R3.9-million SIF component of the pilot project would see the implementing parties establish small production facilities on site at four technical and vocational education and training (TVET) colleges – formerly further education and training (FET) colleges – in the pilot regions to support skills development for students and enable SMMEs to access innovative production technologies to improve their productivity.

The facilities would include design centres and production units to improve SMMEs’ business performance and productivity, in addition to the review and development of entrepreneurship curriculum modules adapted to SIFs within the TVET college framework.

Areas of sector focus included construction, metal fabrication, agroprocessing, jewellery manufacture and vehicle maintenance, besides others, owing to their job creation potential.

The pilot sites comprised the Northern Cape Urban FET College, in Kimberly; Lovedale FET College, in King Williams Town; in the Eastern Cape; the Sekhukhune FET College, in Sekhukhune, Limpopo; and the Ekurhuleni West FET College, in Germiston, Gauteng.

Finally, the pilot programme would also integrate a local economic development (LED) programme into the municipal development plans of six pilot district municipalities and provide development opportunities for SMME growth in the respective regions.

The R9.4-million LED programme would improve the capacity of local municipalities in planning and implementing LED strategies with the aim of supporting local economic development in each of the pilot regions.

The six pilot district municipalities requiring “urgent attention” comprised the Sekhukhune, Lejweleputswa, West Rand, Nkangala, Waterberg, and Bojanala municipalities, which collectively hosted 31 municipalities.

The LED component of the programme would also see the preparation of regional business activity profiles to unpack the economic potential of the target district municipalities and the extent to which the potential had been developed, besides others.

Edited by Creamer Media Reporter

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