The Coega Development Corporation (CDC) has ploughed hundreds of millions of rands into the procurement of services of small businesses which it is involving in many of its infrastructure development projects.
Grounded in the knowledge of the increasing rate of unemployment in South Africa and guided by relevant legislative requirements, the CDC has risen to the challenge of small, medium, and micro-sized enterprise (SMME) development, said Unathi Maholwana, CDC’s SMME Programme Manager.
“The CDC recognises that a thriving SMME sector is vital to delivering on the country’s economic development objectives. Our entire business model is based on the ability to deliver sustainable long-term business development while being cognisant of the need to improve the lives of people through job creation and related opportunities. The focus on sustainability strengthens the value proposition for investors and clients of the future.”
Maholwana added that SMME development was often undertaken during the construction of infrastructure and related projects. During the development of the Tshwane Automotive Special Economic Zone (TASEZ), R324.3m was achieved on SMME procurement spend out of the R2bn expenditure on the project, from April 2021 to December 2021.
The overall SMME expenditure for the CDC, inclusive of TASEZ, industrial development zone, and external programmes was currently R811m. This translates to Black Woman Owned businesses having benefited to tune of R100,8m, Black Youth Owned businesses by R72,5m and Black People with Disability businesses by R1,1m.
Maholwana said access to economic opportunities remained one of the key aspects driving SMME development, and the CDC’s objective was to facilitate, promote and drive the inclusion of them in procurement opportunities. The programme targets SMMEs that are at least 51% black owned, with a Construction Industry Development Board (CIDB) grading of 1 to 6.
The programme also comprises training and mentorship of SMMEs on tendering for construction contracts, basic business concepts, applying health and safety standards, and business finance. From April to December 2021, a total of 213 SMMEs benefited from this training at a cost of R710 300.
The CDC’s SMME Mentorship Programme ensured that 80% of SMME-awarded contracts were successfully completed, while 51 SMMEs improved their Construction Industry Development Board (CIDB) grading through CDC support during 2021.
“Our objective is to create an enabling environment for the development and participation of SMMEs to ensure sustainability and empowerment through the CDC SMME database. Key to this is also ensuring that the CDC spreads the pool of SMMEs benefiting in line with the organisation’s footprint. The programme has recorded successes in areas far and wide with a balanced split of SMMEs benefiting in district areas covering Alfred Nzo, Amathole, OR Tambo and Sarah Baartman, to mention a few.”
Maholwana added that the CDC was also planning an annual supplier day where all SMMEs would be invited to register to attend an information-sharing session that would include Coega project opportunities and developments in the SEZ and Infrastructure Programmes.
The CDC invited further SMMEs to register on its database by filling out a form on its website or emailing smmedevelopment@coega.co.za.
