S.Africa to see widespread development hubs - CNBC Africa

S.Africa to see widespread development hubs

Southern Africa

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“It must be spread to the other provinces – 60 million rand has been set aside for hubs of this nature to be established in the other provinces. This will ensure that even if you are a Gauteng-based SMME but there are opportunities you have identified in other provinces, you can still go to that particular province. It will also help to spread the services right across the country,” Gigaba, the South Africa’s Public Enterprises Minister, told CNBC Africa.

The Transnet Enterprise Development Hub is expected to develop smaller enterprises and new entrants, especially black-owned SMMEs.

At the launch, Gigaba alluded to the fact that the hub is the first of its kind in the country and that it can be seen as a one-stop shop for entrepreneurs as well as potential suppliers for Transnet.

It is expected to provide business development and business registration services, procurement advisory services, tax registration and compliance, financial support and guidance on black economic empowerment requirements.

Gigaba insisted that as the programme develops, various types of mentorship services will be introduced.

“You need other big state-owned companies, you need the private sector itself because what we want is these small and medium enterprises must not only focus narrowly on Transnet programmes , they must be able to spread their wings to other companies to expand their businesses."

He added that 200 million rand will be reserved for other enterprise development initiatives such as business incubation and financial and non-financial support focused on providing an enabling environment for small businesses.

“Small enterprise development is at the epicentre of that programme because small and medium enterprises are job creators, they are drivers of economic growth, they create economic vibrancy, they can be spread right across the country, they allow for new entrants into the economy,” Gigaba concluded.