R50m set aside to assist eThekwini suppliers
Small, medium and micro enterprises (SMMEs) stand to benefit from the eThekwini Enterprise Supplier Development Fund.
eThekwini Mayor, Councillor Mxolisi Kaunda recently announced that the City has set aside R50m for the newly-established eThekwini Enterprise Supplier Development Fund.
Speaking at the fund’s unveiling at the Inkosi Albert Luthuli International Convention Centre, Kaunda said the programme aims to provide adequate support to small, medium and micro enterprises (SMMEs).
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“By doing this, it will ensure they can compete for City projects and within the mainstream economy,” he said.
Kaunda said the City intended to increase the contribution of the fund soon.
“This will all be done in compliance with the revised BBBEE Codes and Enterprise and Supplier Developments of the BBBEE score card, which will see the City invest more than R540m annually into this fund,” he added.
Kaunda gave reassurance that the fund will be privately managed to ensure fairness.
“A special purpose vehicle has been registered. We are finalising other processes and will thereafter issue callouts to the public,” he said.
MEC Pillay hailed the progressive move.
“I am glad that eThekwini has developed the Supplier Development Fund,” said Pillay.
“This is in line with what we are trying to do as the provincial government. Many of these SMMEs fail to deliver on contracts due to capacity and cashflow challenges. It is in our interest to ensure that SMMEs have all the support they need, including bridge finance and grant funding,” said Pillay.
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