RAVI NAIDOO The development of Johannesburg-based SMMEs is a key focus towards economic transformation within the City of Johannesburg Metropolitan Municipality
The City of Johannesburg, together with Walmart-owned South African retailer Massmart, recently held a supplier devel-opment exhibition, allowing Johannesburg-based small, medium-sized and microenterprise (SMME) manufacturers to showcase their products to the retail giant.
“Massmart decided to be part of this exhibition for the first time this year, as it noticed that the aims of the exhibition are perfectly aligned with Massmart’s commitment to developing local SMMEs to include them in Massmart’s supply chain,” said Massmart supplier development executive Mncane Mthunzi during the exhibition.
City of Johannesburg economic develop-ment department trade and investment promo-tion director Reginald Pholo highlighted during the exhibition that this partnership – to assist in developing the economy of the city and small exporters and entrepreneurs in accessing and penetrating the market – was the first of its kind between the City of Johannesburg and Massmart.
“In terms of economic development in the City of Johannesburg, the partnership with Massmart is in line with the municipality’s economic transformation model, as we are working towards creating a small business development hub in the city,” stated City of Johannesburg economic development department executive director Ravi Naidoo.
He noted that the economic transformation model was shaped around five key points that the municipality believed would drive economic growth.
“Firstly, it is important for us to evaluate how much of production we can localise so that we can export more products than we import. Secondly, we have investigated where most economic activities are taking place to create easier access for our people so that they don’t have to travel out of their metropolitan areas to participate in economic activities.
“Thirdly, it is important that, while we aim to support businesses, we have to maintain healthy competition for business to avoid a monopoly-type business environment. “Fourthly, preference will be given to SMMEs in terms of support, as this will allow for new markets to emerge, which will result in more job opportunities.
”Further, we aim to build stronger relationships with the private sector, such as the one we have with Massmart, to ensure the development of SMMEs in the city,” Naidoo explained.
Massmart and the City of Johannesburg’s Economic Development Department identified more than 200 suppliers who attended the exhibition. Exhibitors were given advice by a team of experienced Massmart buyers, who educated and informed potential suppliers on how to do business with the company.
Also, exhibitors were given technical insight in areas such as rebates and logistics management to ensure they were in a better position to do business with Massmart or approach other retailers.
“This was a great opportunity to provide market access for those suppliers who have quality products that cater to our customers’ needs. Suppliers will also be considered for assistance, through Massmart’s Supplier Development Programme,” said Massmart Supplier Develop-ment Programme senior procurement manager Von Stander at the exhibition.
Mthunzi added that Massmart had the poten-tial to make a meaningful impact on the South African economy through such productive partnerships with government.
“When we do our best to enable the sustain-ability of our suppliers’ businesses, we create an even bigger impact on our economy. “Massmart also aims to partner with various government institutions to obtain leverage from each other’s expertise to the benefit of South Africa’s SMME sector,” he concluded.