Measures to retain and establish new SMMEs ventures
Measures to retain and establish new SMMEs ventures EXECUTIVE STRATEGIC WORKSHOP Desmond Khalid Golding Head of Department 09 February 2016 1
Global Economic Outlook (Five Year Review – contraction and re-alignment ) � Financial crisis of the year 2008, altered the way many conventional economic relationships and causalities had traditionally been understood to work � The global financial crisis which translated into a deep recession � Most devastating impact of the financial crisis � fiscus and sovereign debts of many developed countries (debt crisis) � Global economic realignment Emergence � Emergence of the New Normal � China overtaking Japan as second biggest economy (and view that overtaken USA) � Emergence of BRICS � Emergence of ultra left in Europe (Greece Syrina winning elections) � Collapse of crude oil price (and reintroduction of Iran into streaming) � Global contraction have had serious ramifications on SA economy � real sector, inflation, foreign exchange, current account and commodities, personal and sovereign debt increase and rating
Kwa. Zulu-Natal Sectoral Drivers 2014: Q 2 Industry q-o-q 2015: Q 2 y-o-y q-o-q y-o-y Agriculture, forestry and fishing -2. 7 2. 5 4. 3 3. 8 Mining and quarrying -5. 3 2. 5 8. 0 9. 3 Manufacturing 11. 9 2. 1 -1. 2 0. 2 Electricity and water 3. 3 -1. 5 -0. 4 Construction 1. 8 3. 0 6. 5 4. 9 Wholesale & retail trade; hotels & restaurants 3. 5 2. 2 1. 2 2. 7 Transport and communication 1. 4 1. 9 3. 8 2. 4 Finance, real estate and business services 3. 5 2. 2 1. 5 1. 6 Community, social and other personal services 1. 6 2. 0 1. 2 1. 3 General government services 0. 2 2. 0 3. 0 1. 5 All industries at basic prices 4. 0 2. 1 1. 7 1. 8 Taxes less subsidies on products 3. 0 3. 4 0. 2 1. 3 GDPR at market prices 3. 9 2. 2 1. 5 1. 7 Provincial manufacturing accounts for over 15% of the total national manufacturing sector ( Case for Industrial Economic Hub – reindustrilisation measure), and 20% to national agriculture 3
Private sector employment muted Stats SA The Private sector investment and reinvestment remain subdued – Over R 800 billion un-invested 4
Radical Economic Transformation � Fundamental departure from the conventional demand side role of government into a more pointed supply side (state decisive intervention) � Radical overhaul productive structure of the economy: changing balance of output, trade, incomes, diversified employment output (primary, secondary and tertiary) � Need to overhaul any system that perpetuates inequality, unemployment and poverty (inclusive growth – gender, geography, race, class and age) � Procurement and the state’s role in using its buying power to empower target groups, and implementing the resolutions of the Procurement Indaba � Promoting issues of localization (local content), industrialization, value addition (beneficiation), infrastructure development, skills development and entrepreneurship development � Full scale in the implementation of broad based black economic empowerment � Job creation at centre stage of the discourse � Explosion of role by SMMEs and cooperatives � Economy Compact – Shared and Common Vision by government and private sector 5
Kwa. Zulu-Natal Vision 2030 Economic Perspective Repositioning KZN as a gateway to the region (centre for trade, commerce and investment) 6
Vision and Mission Our vision is to: Leading the attainment of inclusive and sustainable economic growth Our Mission is to: �Provide leadership and facilitate integrated economic planning �Be a catalyst for economic transformation and sustainable development �Implement strategies that drive economic growth and promote sound environmental management �Create a conducive environment for trade, investment and tourism �Monitor and enforce sound business and consumer regulations 7
Strategy Implementation Pillars Industrial Economic Hubs and Special Economic Zones Aerotropol is Maritime (Ocean Economy) Tourism Environm ental Managem ent Transversal Activities • • Small Enterprise (SMMEs and Cooperatives) Funding mechanisms Information Technology Research and Innovation Local and Rural Development Organisational Excellence Funding and Financial Sustainability Strategy Alignment: NDP, New growth Path, IPAP (Industrial policy) and PGDP 8
Measures on Business Retention �Supply-side and demand side measures (environ and role player) �Access to funding and capital �Access to enterprise development �Social Accord resolutions �Township and rural business �Improved 30 days payments �Development of Community based procurement framework 9
Continues… �Procurement Indaba 2015 and cabinet resolutions on implementation �Co-operatives Summit and deepening �Revitalisation of the Township Economies �Rationalisation of SOCs �Introduction of community based procurement �State led enterprise development �Procurement dialogues �SMME Academy 10
Measures for New Ventures �Demand-side and demand side measures �Market access �SBGE – micro-financing and enterprise development �Sumitomo Rubber South Africa �Partnership seeks to establish enterprises under Dunlop Container Tyre Fitment centre programme in township and rural areas �Creation of opportunities for unemployed youth and women to be trained and mentored in tyre sales, repair e �Ownership of Dunlop container tyre fitment shop business � 25 SMMEs created � 100 jobs in 3 years �Business support : formal training, And mentorship, tyres pricing, market competiveness, consumer services 11
Continues… �Trade, commerce and investment – Samsung, catalytic projects (Ethenol plant, Anand Singh Studios, Music City, Ngagane and Colenso smelter, Dig out port), infrastructure (Aerotropolis, maritime and tourism) �Airlift strategy �Improved and streamlined EIA processing �Enterprise education and skills development �KZN Social Accord Implementation Framework �Implementation of partnership KZN Business Chamber Council 12
Continues… �Assist Small Enterprises with knowledge and skills �Start, manage and grow business �Business pan implementation �Business chambers participated Ilemebe, Minara, Pm. B, Zululand, Ladysmith and KYCC �More than 150 participated in the programme �Business Support Centres �Access to finance – micro finance and SMMEs (IDFC) �IEH an SEZs �Rationalisation of public entities to unlock economic value 13
Thank you Shukran 14
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