Purpose of the meeting 1 A follow up

Purpose of the meeting 1. A follow up to the meeting held on the 25 th of November 2014. 2. To assess the progress made by the Department of Small Business Development towards the signing of the transversal agreements with the Department of Energy aimed at opening the market for SMMEs and Cooperatives in the energy space. 3. To ensure that the rollout strategy for solar water heated geysers addresses issues of poverty, unemployment and inequalities. 1

The model adopted by the PC on DSBD 1. The Portfolio Committee on Small Business Development adopted a Cooperatives and SMMEs development model that focuses on poverty reduction and job creation. 2. The model seeks to reduce dependency of poor families on social grants by creating an exit of poor households from the social grant register and the indigent registers of municipalities. 3. The long-term objective of the model is to make poor families self sufficient and enable them to pay for services rendered to them by municipalities resulting with a broadened revenue base of municipalities 2

Policies that inform SMMEs and Cooperatives development approach 1. The resolution of the ANC 53 rd conference held in in Mangaung in December 2012 to develop SMMEs and Cooperatives through public procurement and infrastructure spending. 2. The NDP targets of 11 million more jobs by 2030 and the expectation that about 80% of those jobs would be created by SMMEs and Cooperatives (8. 800, 000 = 586, 667 jobs per year). 3. The Back to Basics programme of the Department of Cogta launched in September 2014 3

Policies that inform SMMEs and Cooperatives development approach 4. Preferential Procurement Policy 5. 70% Local content Policy. 6. 30% procurement for SMMEs and Cooperatives announced by the State President during SONA on 12 th February 2015. 7. The mandate of the DSBD on transversal agreements. 8. The development of the 27 Poverty Districts 4

Policies that inform SMMEs and Cooperatives development approach 9. Youth and women empowerment policy. 10. Industrial Development Policy. 11. NEDLAC accord on Enterprise Development and Job Creation. 12. Infrastructure Development 13. The commitment by government to use an integrated development approach similar to the approach used when South Africa was preparing for 2010 soccer world cup. 14. The 2014 Fiscal Expenditure Policy Framework tabled by the Minister of Finance in 2014. 5

Opportunities in energy space identified by the PC on Small Business Development 1. Solar Water Heated Geysers rollout R 4. 2 billion with a share of 30% for SMMEs and Coops. • • • Manufacturing plants Assembling plants Installation Maintenance Repair 6

Opportunities in energy space identified by the PC on Small Business Development 2. Solar street lights for rural areas. 3. Solar traffic lights in urban and rural areas. 4. Switch to energy saving energy bulbs in all government buildings. 5. Switch to Solar Water Heated Geysers in all Hospitals, Universities, Clinics, Prisons. 6. Installation of automatic electricity switches in all government buildings. 7. Solar driven infrastructure for small businesses to reduce the cost of doing business e. g. solar driven hair saloons, mobile spaza shops, butcheries etc. 7

Expectations of this meeting 1. There would be a common and a broader approach between the Department of Energy and the Department of Small Business and Cooperatives Development on participation of SMMEs and Cooperatives in energy space. 2. Before the rollout of the Sola Heated Water Geysers, the two departments would go back to the drawing board and look at how to involve other departments and tap into their resources e. g. The Dept of Higher Education and SETAs, the Dept of Social Development, Dept of Basic Education, Dept of Transport, Depart of Public Works. 8

Expectations of this meeting 3. The need to develop a development strategy for small manufactures. 4. There would be clear understanding of the target group for development and the identification process that would result with measurable results in terms of reducing poverty and inequalities as well as job creation and bringing about sustainable development. 5. There would be an agreement on how to take the process forward. 9