Township investment helps grow black industrialists

The number of black
industrialists in Gauteng is
on the rise after the province
upped its spend on the
township economy from R600
million in 2014 to R6 billion
last year.
And according to MEC for
roads and transport, Ismail
Vadi, a number of transportrelated
manufacturers have
benefited
from the
industrialisation
programme.
He said
the provincial
government was
close to reaching
its target of
spending 30%
of its total
procurement
budget on
the township
economy by
2019. “Last year,
we reached the 22% mark.”
He added that the province
was continuing to invest in
economic infrastructure
in the townships. “This
includes the refurbishment of
industrial parks and providing
broadband connectivity,
establishment of ekasi labs for
technology start-ups, as well as
training and skills development
for township enterprises and
SMMEs.”
Vadi said it had “taken
some time” for the province’s
ambitious industrialisation
project to take root, but it
was now paying off. “A lot of
really good industrialists had
a winning recipe but just did
not know where to start. Our
programmes have provided the
guidance.”
The
Busmark
plant in
Randfontein
– which
manufactures
and assembles
buses for the
bus rapid
transit system
(BRT), Rea
Vaya, as well
as for the
Gautrain
– was an
example of a successful
economic transformation
project, he said.
“They have over 2 000
employees now and have
partnered with a local
manufacturer of window
frames for the buses,” Vadi
said, commenting that the
province’s industrialisation
programme needed strong
players who could either
partner with related
businesses or procure certain
goods or materials for their
production process.
“Local procurement is
a key part of supporting
and helping to stimulate
industrialisation. In January
this year, over 2 800 township
enterprises benefited from the
Gauteng government’s public
procurement policy,” he said.
Professional services
company PwC refers to
national and provincial
governments’ commitment to
growing black industrialists
as the country’s “industrial
lifejacket”, with the company’s
head of marketing, Senchia
Temkin, pointing out that the
challenges of accessing capital
and markets, developing the
necessary technical skills
and improving productivity
are without a doubt the main
constraints confronting black
entrepreneurs in general.
“This is often due to the
limited pool of financiers,
lack of security to back up
loan applications, high cost
of borrowing and, simply
put, fear of rejection when
applying for loans,” she
explained.
INSERT AND CAPTION
Local procurement
is a key part of
supporting and
helping to stimulate
industrialisation.
– Ismail Vadi