The Gauteng provincial government (GPG) has reached its 12% target for township-based procurement spend for the past financial year, with 1 805 township enterprises, up from 400, now benefiting from the Township Economy Revitalisation (TER) strategy.

To date, 5 321 small, medium-sized and microenterprises had been registered in the province’s procurement database as the GPG aimed to ensure 30% of its procurement budget was spent through township-based businesses by 2019.

“In the first full year of the implementation of our TER strategy, the provincial government has spent R1.8-billion procuring goods and services from township enterprises,” Gauteng Premier David Makhura said during his yearly State of the Province Address (Sopa) on Monday.

Municipalities were spending R1.6-billion of their procurement budgets on township enterprises.

The TER strategy stipulated that goods and services valued below R500 000 would be acquired by all departments and agencies from township businesses, while purchases over R500 000 should include the participation of township suppliers through subcontracting and joint ventures.

Makhura pointed out that 577 township enterprises on the West Rand were being supported by provincial government, with more than 250 township enterprises in Sedibeng – a region filled with dynamic township enterprises involved in local manufacturing, particularly metal fabrication and agroprocessing – benefiting from the initiative in the current financial year.

“We are pleased to further report that the following township hubs and industrial parks are undergoing renovation in line with the commitment we made in the 2015 Sopa: Orlando, Saulsville, Khutsong, Hammanskraal, Mabopane, Alexandra and Ennerdale,” he said.

Work on the industrial parks would be completed next month.

“We are intervening to support township entrepreneurs in the automotive sector. Already, our Emergency Medical Services Vehicles Repair Hub in Winterveldt is repairing, servicing and maintaining our ambulances using township mechanics,” he added.

The Katlehong, Soweto and Kagiso township industrial hubs would be accredited and open for business before the end of the 2016/17 financial year.