SMME Development and Support Detailed SMME Overview and

SMME Development and Support Detailed SMME Overview and Catalytic Projects

Contents • Introduction • Organisational Structure of Directorate • Catalytic Projects - 5 Year Long Term IDP strategic objective - Key Features - Achievements 2

Introduction SMME Development and Support Directorate Vision Directorate Mission DED Directorates A city economy that plays a role as the key economic hub on the continent, and a national economic-growth leader, by ensuring sustainable shared growth that benefits SMMEs To actively intervene in the City’s economy to shape conditions for accelerated local economic growth that is sustainable and ensures that the benefits and opportunities are equitably spread to all SMME The SMME Development and Support Directorate is one of eight directorates that constitute the Department of Economic Development of the City of Johannesburg 3

Introduction (2) SMME Development and Support Spatial Economic Development Sector Support SMME Development and Support Department of Economic Development Policy and Programme Integration Trade and Investment Promotion Administration and MOE Support Management Support Economic Research 4

Introduction (3) SMME Development and Support Long term strategic objectives • Increase in the rate of formation of new businesses • Increase in the City’s spend to specific targeted firms owned by specific categories of HDI (BEE, women, disabled, youth, etc) • Increased role of co-operatives in the city economy, and Organisational Structure of thenumber Directorate increased of informal in city-managed market spaces ‘graduating’ into formal businesses traders • Increased number of beneficiaries reached by City-facilitated skills development initiatives • Reduction in the proportion of city firms indicating skills gaps as a constraint on investment (as measured by a two yearly city-specific microeconomic constraints survey) 5

SMME Organisational Structure ____________ Enterprise Development Financial Assistance and Support Broad-Based Black Economic Development Skills Development Directorate Organisational Structure Cooperatives Development and Support Informal Trading Development and Support The Directorate is composed of six sub-directorates, each focusing on a specific area of intervention for the enhancement of SMMEs and to increase the rate of involvement of especially previously disadvantaged individuals in the economy of the City. 6

SMME Organisational Structure ____________ Skills Development Informal Trading Enterprise Dev Skills Strategy Informal Trading Policy SMME Strategy Skills Hub Linear Markets Jozi Rising LMID GYB Partnership RPL By Law Wits Acess Demarcation JSE Scheme Skills Grant Soweto Festival

SMME Organisational Structure ____________ Financial Assistance Cooperatives BEE IDP Objectives Cooperative Strategy BEE Strategy Jozi Equity Fund Cooperative Centre BSD Dirang Ba Bohle (Community Finance Institution)

Catalytic Projects • Catalytic Projects constitute a mechanism to catalyse participation of those sectors of society that would otherwise not participate in such economic development activities • The Directorate is home to several catalytic projects, mainly. Structure aligned to the sub Organisational -directorates or programmes of the Directorate • The slides that follow give an overview of each one of the ten profiled catalytic projects which add towards the realisation of the City’s vision for economic development 9

Organisational Structure of the Directorate Jozi Equity Fund Develop and operationalise a regional equity fund 10

Jozi Equity Fund Size R 1 billion Grant Size R 100 million Principals that will apply Private Equity Principals Source for Projects City will provide projects Target Market SMEs/ HDI entities involved in City driven and owned projects Level of Investment Minimum R 5 million Enterprise Development DED will provide enterprise development to SMEs/ HDI on behalf 11 of JEF

Jozi Equity Fund Achievements Progress to June 2008/2009 • Project approved by Mayoral • The implementation manager has been appointed • Grant conditions finalised by an external lawyer • Discussion with other Funders are ongoing, awaiting firm commitments • Launch plan in place – proposed launch date 1 st quarter 2009/2010 Tangible outputs • Fund additional number of SME participating in City owned/City driven projects. • Through the grant agreement, the JEF is obligated to disburse at least 50% of its capital by the 3 rd year of operations • Enterprise Development Services to JEF clients • Co-location with the SMME directorate • Operationalise JEF (governance structures, staffing and systems) • Fund 6 SMME • Expression of interest to attract private sector funders 12

Dirang Ba Bohle Organisational Structure Community Finance of the Directorate Institution Work with stakeholders to roll out a community bank that enables SMMEs including, Co-operatives and Informal traders to build a credit record, access an expanded range of financial products, etc. 13

Dirang Ba Bohle DBB Size R 300 million Grant Size R 60 million Principals that will apply Grameen Bank principles Target Market Income generating: Co-operatives, Tsokvels, emerging entrepreneurs Loan Sizes In excess of R 2, 000 Enterprise Development DED & NGO will provide enterprise development to the target market. 14

Dirang Ba Bohle Achievements Progress to June 2008/2009/2010 Tangible outputs • Project approved by Mayoral Committee • Discussions are continuing with internal departments • Continue to Fund SMMEs through a pilot in Diepsloot to jointly roll out the Community Bank. • DED to identify and invite potential NGO’s, NPO’s, CBO’s or any suitable not for profit organisation to undertake the operations of DBB. • Launch plan in place – proposed launch date 1 st quarter of 2009 • Co-location with the SMME directorate • Operationalise DBB (governance structures, staffing and systems) • Fund SMMEs through a pilot in Diepsloot and Orange Farm • Develop base line poverty index indicator and Orange Farm • Based on the pilot results implement full roll out of DBB • Expression of interest to attract private sector funders 15

Jozi Rising Organisational Structure Or of the Directorate The Business Place Where feasible and appropriate, work with the agencies established by other spheres of government to ensure that HDI entrepreneurs have access to other institutional and financial support 16

Jozi Rising Achievements Progress to June 2008/2009 • The Annual Soweto Festival took place between 24 – 28 September 2008; • Approval of the SMME strategy and its interventions by the Mayoral committee, in particular: - Jozi Rising - Partnership Scheme - Skills Grant • Immediate implementation of the strategy per the implementation plan. • Integration between Jozi Rising and BEE Database. Refer to BEE database. • Develop a preferential procurement policy with Supply Chain for approval by Mayoral Committee • SMME week within the City 2009/2010 Tangible outputs • Rolling out of Jozi Rising to JEF SMEs, Techno Hubs and other Com. Dev facilities, estimated initially at 2000 SMME per month. Refer to JEF and Techno Hubs. 17

Certified City Business Programme Organisational Structure of the Directorate Catalyse opportunities for BBBEE/SMME through creative public-private partnerships 18

Certified City Business Programme Achievements Progress to June 2008/2009/2010 Tangible outputs • Project approved by the Mayoral committee • Rolling out to JEF SMEs 19

Leago Skills Hub Organisational Structure incorporates Recognition of Prior Learning and of the Directorate Labour Market Information Database Develop a City skills strategy focused on the skills supply/demand chain, first lends to the identification of a list of critically scarce skills in the city, to guide other initiatives 20

The Skills Hub Funding Size R 50 million Grant Size R 20 million Principals that will apply Economically driven skills initiatives Target Market Residents of COJ Employers MOE and the public and private sector Other Projects Labour Market Database; and Recognition of Prior learning 21

The Skills Hubs Achievements Progress to June 2008/2009 Skills Strategy has commenced including: • Skills Hub approved by the Mayoral Committee. • Over 2000 artisans The RPLed • Skills Strategy launched in August 2008 • Appointment of to service providers to expedite: - The certification ceremony of the 1561 ‘artisans’ who were successfully RPL’d - Setting up of the panel of ‘artisans’ who are ready to be contracted - Phase II of the RPL Project which targets the RPLing of up to 1000 ex military veterans - Implementation of the Skills Hub • Launch plan in place – proposed launch date second quarter of 2009 calendar year • Co-location of the Skills Hub with the SMME directorate • Operationalise the Skills Hub (governance structures, staffing and systems) • Intergration of economically driven skills projects within the City 2009/2010 Tangible outputs • Source funding from strategic partners (Do. L/NSF/ private sector etc. ) • Rolling out of the City’s skills strategy through the Skills Hub including (LMID, RPL etc. ) • Ongoing process of funding approximately 20 students per year with Wits Plus, and Wits enterprise to supply the industries with the accounting skills and business related skills. 22

Black Suppliers’ Database Organisational Structure of the Directorate Expand widely market the current BEE database. 23

Black Suppliers Database Achievements Progress to June 2008/2009 • Discussions with supply chain and OCIO on how to integrate the two databases have commenced. • A draft RFP to revamp the current BEE database has been completed for discussion with SCM and OCIO. 2009/2010 Tangible outputs • Widely market integrated BEE database • Activity report indicating usage of the BEE database 24

Linear Markets Organisational Structure of the Directorate Redefine and scale up the City’s current Informal Trade Development Programme to ensure that informal traders benefit from a system that facilitates their stabilization and, where possible, graduation to the formal sector. 25

Linear Markets Achievements Progress to June 2008/2009 • Construction work on Quartz and Hoek Street 1 to be completed • The consolidated Linear Markets business plan was approved by the Mayoral Com 2009/2010 Tangible outputs • Construction work for other markets to commence in line with the Linear Market Business Plan, subject to budget availability • The RFP for the development of informal trading policy implementation plan and 2010 (including communication and implementation strategy) has been completed • 2010 by Laws, incorporating input from traders, were approved by Mayoral committee • Draft amendments to the current informal trading bylaws have been gazetted and published in all major newspapers for comments • Hoek street segment 3: Negotiations with the private sector have concluded and all legal agreements have been signed by all stakeholders Alternative arrangements for relocation during construction on-going Construction to commence once the plans have been approved. 26

Organisational Structure of the Directorate Grow Your Business Scale up entrepreneurship training programmes where needed targeting women, youth and the paths that are linked to current economic skills needs 27

Grow Your Business Achievements Progress to June 2008/2009/2010 Tangible outputs • Another 550 traders from Grow Your business Project run in conjunction with Wits University also graduated last quarter. • A mentorship programme for informal traders • 3500 informal traders trained thus far • Plan to scale up training by bringing on board another 1500 • Recent successes include that: 40 trainees appear on the City’s database 10 have since obtained formal employment Many have registered close corporations 28

The Bridge Cooperatives Centre Organisational Structure of the Directorate Facilitate a package of support for small manufacturing co-operatives. 29

The Bridge Cooperatives Centre Achievements 30

Grow Your Business Achievements Progress to June 2008/2009/2010 Tangible outputs • The cooperatives strategy has been completed and • Establishment of a Co-operative office within the City approved by the Mayoral committee in October. Support existing and the establishment of co-operatives within the City 31

Contact Details Directorate Tel Fax Address : : SMME Development and Support Organisational Structure of the Directorate (011) 358 3484 (011) 358 3444 66 Jorrisen Street 5 th Floor, Jorrisen Place Braamfontein Thank You! 32

SMME Directorate Director : Thuli Kumalo Skills : Lavelle Nomdo Informal Trading : Xolani Nxumalo Enterprise Dev : Tsholo Mogotsi Financial Assistance : Thuli Kumalo Organisational Structure of Cooperatives : Sean Dinat the Directorate BEE : Thabisile Mazibuko Thulik@joburg. org. za Lavellen@joburg. org. za Xolaninx@joburg. org. za Tsholom@joburg. org. za Thulik@joburg. org. za Seand@joburg. org. za Thabisilem@joburg. org. za Source: GDS, IDP, SMME Business Plan and Mayoral Reports 33

• Comments • Logos (institutional arrangements) – MTC – Soweto festival – The Business Place • Hyperlink all other additional information