Steve Tshwete municipality sets aside R50m for black SMMEs
Share this article:
THE Steve Tshwete Local Municipality (STLM) in collaboration with the National Empowerment Fund (NEF) has jointly set aside R50 million towards the Enterprise and Supplier Development (ESD) fund established between the two entities, to benefit black-owned and managed SMMEs situated within the municipality.
The municipality will make a financial contribution of R20m, the NEF committing R30m for qualifying transactions on a 40:60 ratio.
The fund is for the exclusive benefit of businesses that are located in the municipality, have black majority ownership, black women participation, and are commercially sustainable among other things.
The NEF said since its inception it has built a strong reputation as a fund manager through partnerships with various organisations in the public and private sectors.
"Since operational inception in 2004, the NEF has approved in excess R11.13 billion for black entrepreneurs countrywide, supporting more than 103 299 jobs, and has achieved clean external audit opinions for 17 years," it said.
Steve Tshwete municipal manager Bheki Khenisa said the municipality was grateful for the partnering with the NEF as this initiative will open up business opportunities for the people of STLM.
“This venture will promote SMMEs, township industrialisation, stimulate and diversify economic growth and industries. We aim at closing economic gaps that were generated by, among others, the Covid-19 pandemic. This initiative will also ensure that our vision of becoming the best city in South Africa in service delivery, innovation, good governance, and inclusive growth is realised,” says Khenisa.
He added that the partnership would “promote and foster resolutions taken by the municipality to ensure economic growth and inclusivity in the SMME sector”.
NEF divisional executive for strategy, planning, and significant investments Seakale Molopo, said the partnership was significant in that it will advance the organisation’s key objective of optimising its investment portfolio and presence across the country.
“In accordance with the partnership agreement concluded with the municipality, the NEF will establish, develop, implement and administer the fund, through which the NEF will assist the municipality to accelerate broad-based black economic empowerment within the municipality by identifying fundable businesses, and providing them with a range of support interventions including mentorship, to enhance the chances of success,” said Molepo.
BUSINESS REPORT ONLINE