Mail & Guardian

Small business must work as a united front

- Lucas Ledwaba

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.

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 ??  ?? Seaparo Sekoati, MEC for the Limpopo Department Of Economic Developmen­t, Environmen­t And Tourism.
Photo Courtesy: Lucas Ledwaba
Seaparo Sekoati, MEC for the Limpopo Department Of Economic Developmen­t, Environmen­t And Tourism. Photo Courtesy: Lucas Ledwaba

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