Emerging businesses in Nelson Mandela Bay could benefit from tenders amounting to R400m in the current financial year.
This equates to 30% of the procurement spending that is expected to be dished out to companies through contracts until June 30 2022.
To achieve this R400m for SMMEs in the Bay, the municipality has started consolidating the procurement plans of all its departments to ensure that 30% of work packages goes to small businesses.
This was announced at the launch of the Emerging Micro Enterprise Development and Support Programme on Thursday.
Small businesses have already benefited from R200m in the last financial year (2020/2021) by the city channelling work through development projects.
Economic development, tourism and agriculture political head Siyasanga Sijadu said all departments had pledged to make use of the support programme to make sure 30% of the metro's capital budget went to SMMEs.
“I am tired of business owners knocking on my door, burning and protesting over not being given projects,” Sijadu said.
“We are finding solutions and this initiative is crucial to the development of EMEs [emerging and micro enterprises] and we want active participation.
“The 30% should be known by every directorate and it is a matter of collaborative efforts and working with one another,” she said.
A development database has been compiled which contains the details of 2,776 EMEs across the 60 wards of the metro.
About 400 EMEs have been trained in areas of compliance and business development, among other things, to ensure the sustainability of their businesses.
The city said special groups such as women, the youth and people with disabilities were closely monitored to ensure they benefited from the programme.
For years, the metro has been at loggerheads with SMMEs over the allocation of projects in the city, particularly in townships.
In March, a group of small businesses stormed the City Hall, demanding to be appointed as the main contractors when RDP houses were built.
They did not only want to be given subcontractor projects.
Local Business Committee secretary Masixole Mashelele said an effective communication structure had been set up to instil unity among small businesses.
Mashelele said EME representatives had been chosen from the metro’s 60 wards and constituted into clusters that formed the Local Business Committee.
“There won’t be anyone who claims to represent SMMEs any more because there is already a structure for that which is in place,” he said.
“We have gone through all processes to ensure that this structure is effective and will ensure transparency.”
Acting city manager Anele Qaba emphasised that the programme would abide by the supply chain management processes.
“We are levelling the playing field,” he said.
“We are governed by supply chain processes and we will make sure that all are adhered to.
“There will be fairness and competitiveness.”
HeraldLIVE