The need to support and deploy resources towards black industrialists has never been greater, was the central message delivered by Minister of Trade and Industry, Dr Rob Davies, at a panel discussion hosted by Kagiso Trust in partnership with the University of the Witwatersrand.
During his keynote address Davies revealed that the government had set a target of R100 billion to support the new black industrialists’ programme, which aims to create 100 black industrialists in the next three years.
The programme, which was launched last year, is already showing signs of early success, with South African Airways committing R10 billion of its budget to procure goods and services from black industrialists. In addition, the Department of Trade and Industry has established relationships with suppliers and the country’s financial institutions are also eager to get on board.
“The Department of Trade and Industry is now also focusing on building and growing black industrialists. These are the entrepreneurs and small businesses that need to do business from an industrial level within their sector. We are looking at the means of production, like manufacturing, where we can produce within South Africa,” said Davies. “To succeed, industrialists need to be passionate and have extensive knowledge about the sector they work in.”
Davies went on to highlight that the South African economy can no longer rely on consumption to drive GDP growth but that South Africa must focus on creating businesses within the productive sector of the economy.
“Small businesses need to move up the value chain and industrialize the economy and enterprise development needs to be done in a focused, concrete manner that supports value addition and industrialisation,” said Davies.
According to Davies the agricultural sector holds a lot of opportunity to entrepreneurs. Paballo Makosholo, Kagiso Trust Finance and Investment Executive, highlighted how development organisations like Kagiso Trust have an important role to play in this respect, as they act as a conduit to facilitate enterprise development and supplier development initiatives for a company.
He outlined Kagiso Trust’s innovative funding model called Kagiso Enterprise Rural Private Equity Fund (KERPEF) which helps develop small businesses and rural entrepreneurs by commenting “Rural business development is key through agro-processing and the KERPEF model’s core focus is access to funding, skills development and access to markets.”
Fellow panelist and executive chairperson of Mtiya Dynamics, Dr Thamsanqa Mazwai added, “Agro-processing, for example, is an untapped sector which needs to grow and create much-needed jobs. This is where companies can also benefit from local production, so they do not have to import goods.”
“Upscaling and incubating small business is the new approach to enterprise development,” he added.
It is only with innovative approaches to economic transformation, like broadening the industrial base through the inclusion of black industrialists, that the country can ensure reduce unemployment and poverty, address inequality – and ensure economic sustainability.
For more information contact:
Tel: 011 303 7000
Email: 078 425 0731
Kagiso Trust turns 30 years
This year marks a very important milestone for Kagiso Trust as the organisation celebrates 30 years of existence as a thriving African development organisation. As part of the celebrations, Kagiso Trust has adopted a theme that speaks to its 30 years of knowledge and learning: Kagiso Trust’s Pearls of Wisdom campaign.
Kagiso Trust values the learnings over the last three decades and looks forward to the public, private and civil sectors contributing their pearls of wisdom so we can collectively learn from the past and prepare for a better future.
Kagiso Trust was founded by pro-democracy clerics and development activists in May 1985. The organisation was officially registered just over a year later.
For close to 30 years, the Trust has worked closely with South Africans to achieve a society that will offer liberty, justice and freedom from poverty.
To celebrate this momentous milestone in history, Kagiso Trust in partnership with various tertiary institutions, media and other tactical partners, has planned a two-year long celebration marked with a series of events which are scheduled to take place in strategically selected locations around the country.
Join the conversation on Twitter @Kagiso_Trust or #KT30Years
For more about the Kagiso Trust, refer to www.kt30years.co.za.
To view other NGO press releases, refer to www.ngopulse.org/group/home-page/pressreleases.