In a bid to create business opportunities to boast cooperatives and small, medium and micro enterprise (SMMEs) across Ekurhuleni, the Ekurhuleni Empowerment Packages have been launched and will come into affect from July 1.
A total of R2,9-billion procurement value has been ring-fenced for pre-qualified businesses owned by the youth, people with disabilities, black industrialists and for community creation initiatives.
The executive mayor of Ekurhuleni, Clr Mondli Gungubele, said during the State of the City Address, Ekurhuleni has limited local supplies that leveraged on the Supply Chain Management (SCM) process.
“We are doing this in line with Section 217 of the Constitution which stipulates the needs to implement a procurement policy that will provide for categories of preference in the allocation of contracts and the protection of advancement of persons, or categories of persons disadvantaged by unfair discrimination,” he said.
The empowerment of small business is in line with the objectives of the provincial government.
Premier David Makhura, during his State of the Province Address said, “All municipalities shall work to ensure that government procurement policies facilitate that formation of co-operatives and SMMEs by young people, women and people with disability who have demonstrable commitment to succeed in the world of entrepreneurship.”
The breakdown of the ring-fenced budget is as follows:
r R1-billion (34 percent) ring-fenced for youth-owned enterprise targeting at least 1190 businesses.
r R589-million (20 percent) ring-fenced for community works programmes.
r R500-million (17 percent) ring-fenced for learners contractor under the Vukuphile Expanded Public Works Programme, targeting at least 40 businesses.
r R500-million (17 percent) ring-fenced for black industrialists targeting at least 50 businesses.
r R101-million(4 percent) ring-fenced for the Lungile Mtshali Community Development Programme targeting community businesses in 101 wards.
r R100-million (4 percent) ring-fenced for community social entrepreneurship through grant aid targeting at least 500 local businesses.
r R115-million (4 percent) ring-fenced for the job fund leveraging and programme implementation.
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