The Mayor of Ekurhuleni, Clr Mondli Gungubele, made the announcement regarding the package during his recent State of the City address.
According to metro spokesperson Themba Gadebe, the R2.9-billion of procurement value will be ring-fenced for pre-qualified businesses owned by the youth, women and people with disabilities, black industrials, and community job creation initiatives in compliance with the SCR policy.
“These pre-qualified entities shall be facilitated into strategic partnerships and or sub-contracting relationships, to enable skills transfer and localisation of the procurement spent in Ekurhuleni, such that no less than 30 per cent of all awarded contracts per ward are localized,” he said.
In practical terms, the ring-fenced budget will focus on the following:
* R1b-n (34 per cent) ring-fenced for youth-owned enterprises (targeting at least 1 190 businesses.)
* R589-m (20 per cent) ring fenced for community works programme.
* R500-m (17 per cent) ring-fenced for learner contractors under the EPWP Vukuphile Programme, targeting at least 40 businesses.
* R101-m (four per cent) ring-fenced for Lungile Mtshali Community Development Programme, targeting community businesses in 101 wards.
* R100-m (four per cent) ring-fenced for community social entrepreneurship through Grants-in-Aid, targeting at least 500 local businesses.
* R115-m (four per cent) ring-fenced for Job Fund Leveraging Projects and Programme implementation.
Regarding the Ekurhuleni Community Empowerment Package, DA Ekurhuleni caucus leader Fortune Mahano said there is no real plan put in place on how to achieve such lofty ideals.
“The announcement of ring fencing is nothing more than a political grandstand,” he said.
”The DA supports the idea if there is a plan to realise.”
Mahano also remained concerned about the lack of job creation in the metro.
“The mayor, when addressing his job creation battle plan in 2011, stated that the metro was committed to the creation of 180 000 job opportunities in Ekurhuleni, yet the Ekurhuleni economy shed at least 27 927 formal jobs between 2011 and 2012 across all sectors of the economy.
“The facts are, Ekurhuleni created only 16 680 new jobs in 2013 and 39 000 in 2014, as per figures released by Global Insight.
“That is only 55 680 jobs created by the metro and not 180 000.” – @NalediBoksburg
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