smme development and support

SMME Development and SupportDetailed SMME Overview and

Catalytic Projects

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Contents

• Introduction

• Organisational Structure of Directorate

• Catalytic Projects

- 5 Year Long Term IDP strategic objective

- Key Features

- Achievements

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Introduction

The SMME Development and Support Directorate is one of eight directorates that constitute the Department of Economic Development of the City of Johannesburg

SMME Development and Support

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

Directorate Vision

Directorate Mission

DED Directorates

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Introduction (2) SMME Development and Support

Spatial Economic

Development

Sector Support

Policy and Programme Integration

Economic Research

Management Support

Administration and MOE Support

Trade and Investment Promotion


Department of Economic

Development

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Introduction (3)

Organisational Structure of the Directorate

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 increased number of informal traders in city-managed market spaces ‘graduating’ into formal businesses

• 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)


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SMME Organisational Structure

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.

Enterprise Development

Skills Development

Cooperatives Development and Support

Informal Trading Development and Support

Broad-Based Black Economic

Development

Financial Assistance

and Support

Directorate Organisational Structure

_______________________


Skills Development

Skills Strategy

Skills Hub

LMID

RPL

Wits Acess

JSE

Informal Trading

Informal Trading Policy

Linear Markets

GYB

By Law

Demarcation

Enterprise Dev

SMME Strategy

Jozi Rising

Partnership

Scheme

Skills Grant

Soweto Festival

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Financial Assistance

IDP Objectives

Jozi Equity Fund

Dirang Ba Bohle

(Community

Finance

Institution)

Cooperatives

Cooperative Strategy

Cooperative

Centre

BEE

BEE Strategy

BSD

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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 aligned to the sub-directorates or programmes

• 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

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Jozi Equity Fund

Develop and operationalise a regional equity fund

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Jozi Equity Fund

Fund Size R 1 billion

Grant Size R100 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 R5 million

Enterprise Development DED will provide enterprise development to SMEs/ HDI on behalf of JEF

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Achievements

Jozi Equity Fund

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 1st

quarter 2009

• Co-location with the SMME directorate

• Operationalise JEF (governance structures, staffing and systems)

• Fund 6 SMME

• Expression of interest to attract private sector funders

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 3rd year of operations

• Enterprise Development Services to JEF clients

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Dirang Ba Bohle Community Finance

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.

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Dirang Ba Bohle

DBB Size R300 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.

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Dirang Ba BohleAchievements


• Project approved by Mayoral Committee• Discussions are continuing with internal departments

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 1st 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


• Continue to Fund SMMEs through a pilot in Diepsloot and Orange Farm

• Based on the pilot results implement full roll out of DBB

• Expression of interest to attract private sector funders

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Jozi Rising Or

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

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Jozi RisingAchievements


• 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


• Rolling out of Jozi Rising to JEF SMEs, Techno Hubs and other ComDev facilities, estimated initially at 2000 SMME per month. Refer to JEF and Techno Hubs.

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CertifiedCity Business

Programme

Catalyse opportunities for BBBEE/SMME through creative public-private partnerships

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Certified City Business Programme

Achievements


• Project approved by the Mayoral committee


• Rolling out to JEF SMEs

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Leago Skills Hubincorporates

Recognition of Prior Learning and 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

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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

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The Skills HubsAchievements


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 readyto be contracted

- Phase II of the RPL Project which targets theRPLing 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


• Source funding from strategic partners (DoL/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.

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Black Suppliers’ Database

Expand and widely market the current BEE database.

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Achievements

Black Suppliers Database


• 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.


• Widely market integrated BEE database• Activity report indicating usage of the BEE database

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Linear Markets

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.

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Linear MarketsAchievements


• Construction work on Quartz and Hoek Street 1 to be completed

• The consolidated Linear Markets business plan was approved by the Mayoral Com

• 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.


• Construction work for other markets to commence in line with the Linear Market Business Plan, subject to budget availability

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Grow Your Business

Scale up entrepreneurship training programmes where needed targeting women, youth and the paths that are linked to current economic skills needs

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Grow Your BusinessAchievements


• 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


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The Bridge

Cooperatives Centre

Facilitate a package of support for small manufacturing co-operatives.

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The Bridge Cooperatives Centre

Achievements

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Grow Your BusinessAchievements


• The cooperatives strategy has been completed and approved by the Mayoral committee in October.


• Establishment of a Co-operative office within the City Support existing and the establishment of co-operatives within the City

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Contact Details

Directorate : SMME Development and SupportTel : (011) 358 3484Fax : (011) 358 3444Address : 66 Jorrisen Street

5th Floor, Jorrisen Place Braamfontein

Thank You!

33Source: GDS, IDP, SMME Business Plan and Mayoral Reports


Director : Thuli Kumalo [email protected]

Skills : Lavelle Nomdo [email protected]

Informal Trading : Xolani Nxumalo [email protected]

Enterprise Dev : Tsholo Mogotsi [email protected]

Financial Assistance : Thuli Kumalo [email protected]

Cooperatives : Sean Dinat [email protected]

BEE : Thabisile Mazibuko [email protected]

SMME Directorate

• Comments

• Logos (institutional arrangements)

– MTC

– Soweto festival

– The Business Place

• Hyperlink all other additional information

smme development and support

Documents

city economy

support directorate

proportion of city firms

supportdetailed smme

citys economy

profiled catalytic projects

equity principalssource

citymanaged market spaces