Big business needs supplier diversity- PremierMakhura
Gauteng Premier, David Makhura and JCCI Pressident Ernest Mahlaule.
Big business needs to open opportunities in supply chain management for small and township-based enterprises in an effort to assist them to build sustainable businesses, this is according to Gauteng Premier David Makhura.
Addressing the Johannesburg Chamber of Commerce and Industry (JCCI) annual conference recently in Johannesburg,Makhura said even though the provincial government was spending R7 billion of its procurement spend to small businesses it was not enough.
“Most of these enterprises are not sustainable and they depend on government tenders. If they don’t get government tenders for six months, they will collapse. I want us to use this engagement to discuss what we need to do to ensure that these businesses are sustainable,” said Makhura.
Makhura said that big business has a huge role to play saying 80% of the South Africa’s economy was in the private sector.
“The economic transformation has to be driven across the economy not just in the public procurement.
“The Gauteng government has a Memorandum of Understanding with the Joburg Chamber on initiatives to stimulate economic growth and create business and employment opportunities,” Makhura said.
He also said successful partnership between Gauteng and the Joburg Chamber could teach the entire country something about how business and government could work together to grow as well as to transform the economy.
Reacting, Joburg Chamber President, Ernest Mahlaule commended Premier Makhura for being the friend of business and for ensuring that the Gauteng economy works.
“As cooperate South Africa, we must open the doors for young people and offer them internships, employment and skills development opportunities. Through this, they will stand a good chance of being absorbed in the workplace,” Mahlaule said.
He pointed out that, big business were just happy to meet the minimum requirements of legislation in empowering small business.
Mahlaule said the partnership between the provincial government and the Joburg Chamber, must ensure that all the initiatives in building the economy must be characterised by action plans.
In addition, he said government must pay suppliers on time especially the small businesses to ensure their sustainability.
Addressing the same conference, World President for the International Special Tooling and Machining Association, Robert Williamson said tooling occupied a key position in the industry supply chain, linking product development and production.
“Its proper implementation determines the reliable and cost-effective manufacturing of products, which is a key growth factor for the South African economy,” Williamson said.
Premier Makhura concluded that, “We need to have sustainable and transformative partnerships to tackle these challenges,” adding that the transformation of the economy is a Constitutional imperative.”