Small business must work as a united front
Emerging entrepreneurs should register their businesses so they can access support from government and related bodies set up to support SMMEs.
They should also work with municipalities and local economic development agencies to help them grow their businesses.
This was the advice offered by Seaparo Sekoati, MEC for the Limpopo department of economic development, environment and tourism (LEDET) during the Township and Village Revitalisation imbizo held at the Giyani Community Hall last Friday.
Sekoati also urged businesspeople to familiarise themselves with the Limpopo Business Registration Act (Libra). The act seeks to help municipalities to develop a database of businesses in the province for strategic economic development initiatives and policy planning between the department and all role players.
“Let’s work together to build our economy,” Sekoati told the packed hall after sitting through a long session listening to input from the gathered businesspeople.
He said under apartheid black business, especially in townships and villages, was stifled. “Black South Africans were excluded from the mainstream economy. They could not do business with government,” said Sekoati.
He said however that people had still found ways to operate businesses, even under the repressive environment. He said despite the discriminatory laws, black business had produced successful spaza shop owners, grocery and liquor retailers and taxi owners.
Sekoati said sustainable entrepreneurship can help push back the disturbingly high 19.2% unemployment rate in Mopani district.
In February StatsSA noted in its Labour Force Survey for the Quarter that Limpopo recorded the secondhighest employment gains. The province managed to create 64 000 new jobs during that quarter. Jobs gained were mainly in the areas of construction, mining and agriculture.
Locals at the imbizo called for the reopening of four gold mines around Giyani that have remained closed for years. Sekoati said that he supports this call, and said the department would help to facilitate the process of reopening the mines and ensuring that they comply with the necessary regulations.
The MEC said the provincial government has taken a decision that all government departments, municipalities and state-owned agencies must procure goods and services from enterprises and co-operatives located in townships and villages.
He added that many of these enterprises should be owned by youth, women, people with disabilities and military veterans.
Industrial Park
Sekoati revealed that LEDET in partnership with the department of trade and industry is in the process of revitalising Nkowankowa Industrial Park, as part of phase two of the Township and Village Revitalisation Strategy.
He said five black industrialists in Limpopo have already benefited to the tune of R604-million through the Black Industrialist Programme. The Black Industrialists Policy was approved by Cabinet in November 2015.
According to the department of trade and industry, the purpose of the policy “is to leverage the state’s capacity to unlock the industrial potential that exists within black-owned and managed businesses that operate within the South African economy through deliberate, targeted and well-defined financial and non-financial interventions as described in the Ipap (Industrial Policy Action Plan) and other government policies.”
The Industrial Development Corporation defines a black industrialist as “a black entrepreneur who creates and owns industrial capacity and provides long-term strategic and operational leadership to the business, and is by definition not a portfolio or purely financial investor.”
“Use our facilities in Nkowankowa, build big businesses and provide employment to our people,” said Sekoati.
He encouraged other people in Mopani to take advantage of the Black Industrialist Programme. He said they are in the process of developing the Black Industrialist Support Framework with the intention of supporting and capacitating black industrialists in order for them to access the Black Industrialist Incentive.
Repositioning Limpopo as tourist destination
Sekoati said a revised marketing strategy has been developed to help reposition the province as a tourist destination.
“We need to see and feel the difference in the marketing space,” said the development MEC.
He said the policy on commercialisation of nature reserves has been approved to ensure participation by communities and the private sector operating adjacent to the nature reserves.
Sekoati said they are also embarking on the transformation of the game and hunting sector. He said the department would be calling for proposals by communities and individuals in the wildlife exchange program.
A 2014 study published by the South African Journal of Economic and Management Sciences found that private game reserves and game farms constitute the bulk of South Africa’s wildlife industry. “On these private reserves and game farms, hunting is one of the major income generators for product owners,” the study found.
The economic impact of hunting: A regional approach revealed that half of the country’s 9 000 game farms are situated in Limpopo, and that about 80% of the country’s hunting takes place in the province.
Sekoati also encouraged people to look after the environment in order to achieve sustainable development.
“We caution those who continue to harm our environment through acts such as cutting trees and the illegal mining of sand in our communities,” he said.
Sekoati said growth in job creation, production of food, access to good public services and sound environmental management are essential to reach the goal of a better life for all.
Limpopo Liquor Act
Sekoati said LEDET will continue to partner with other law enforcement agencies to ensure compliance with laws regulating the liquor business.
He said implementation of the Limpopo Liquor Act, which was approved in 2015, is still continuing.
“This act provides, for example, that all new liquor applications must be advertised in the local newspapers, and the local authorities must grant permission to whoever wants to operate a liquor business before consideration by the department,” he said.
Feedback
“I’m happy with the feedback particularly, because there are people here who are very focused,” said Sekoati. “Giyani is more rural by nature. Support for SMMEs around here is essential to ensure they become stronger and create more local job opportunities.” relates to licensing, permits or registration will be reviewed to ensure that it is simplified, efficient and cost-effective.
have dedicated supplier development programs for goods and services consumed in townships.
as a way of promoting co-operation between township and village enterprises.
township and village entrepreneurs for enrolment in the Township and Village Economy Revitalisation Programme.
banking and co-operative insurance that is owned by township and village households, enterprises and others.
opening up procurement processes through the review of procurement guidelines, and creating a list of ring-fenced goods and services to be procured from township and village entrepreneurs.