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PORTFOLIO COMMITTEE ON SMALL BUSINESS DEVELOPMENT
Mr. Mthokozisi MpofuActing DDG: Programmes & Projects
INTRODUCTION The DoE fully supports the development of SMMEs and Cooperatives and
understands the role the SMMEs and Cooperatives play in reversing in equalities that exist in our economy.
In the midst of high record of unemployment ,SMME & Cooperatives are a major contributor to job creation.
SMMEs and Cooperatives are important in improving the living and working conditions of people, facilitating essential infrastructure and services even in the most nodal areas and bringing about sustainable development.
In respect of the above ,DoE will collaborate with the Department of Small Business Development in four priority areas:o Integrated Energy Centres (IeCs)o Independent Power producers (IPPs) o Solar Water Heaters (SWH)o Solar Home Systemso Biofuelso Payment of invoices of SMMEs and Cooperatives in 30 dayso Public awareness on business opportunities within the energy sector
Independent Power Producers (IPPs)
Economic Development Requirements of the programme
Economic Development Requirements The Economic Development Elements, which have been structured to
address the objectives of the Department are as follows:
Economic Development
Element
Specific Focus Areas Period in which Applicable
Job Creation • South African Citizens• Black People• Skilled Black People• Local Communities
Construction Measurement Period and Operating Measurement Period
Local Content South African services and products Construction Measurement Period
Ownership • Shareholding by Black People and Local Communities in the Project Company
• Shareholding by Black People • EPC Contractor• O&M Contractor (if any)
Construction Measurement Period and Operating Measurement Period
Management Control
Involvement of Black People and Black Women in management
Construction Measurement Period and Operating Measurement Period
Economic Development Requirements
Economic Development
Element
Specific Focus Areas Period in which Applicable
Preferential Procurement
Focuses on subcontracting to:•B-BBEE Procurement•Qualifying Small Enterprises and Exempted Micro Enterprises (SMMEs)•Women Owned Vendor Procurement
Construction Measurement Period and Operating Measurement Period
Enterprise Development
Enterprise Development Contributions and those on Local Communities
Operating Measurement Period
Socio-Economic Development
Socio-Economic Development Contributions and those on Local Communities
Operating Measurement Period
SOLAR HOME SYSTEMS
Solar Home Systems
• This part of the electrification programme aimed at achieving 90% of households through high-quality non-grid solar home systems to address the current and future backlogs.
• In collaboration with the DSBD and municipalities DoE has facilitated the establishment of 8 Cooperatives in the Eastern Cape ( 2 in Engcobo &6 in Mbashe).
• 2 cooperatives in KZN (Ingwe/Ubuhlebezwe) that are still under registration.• More efforts to establish additional Cooperative to for the installation of 500
Solar Home Systems are underway. • Cooperatives are currently receiving training on business and technical skills
on how to install and maintain Solar Home Systems. Training is provided by SEDA.
• A process is also underway to assist Cooperatives with their applications for the Incentive Scheme.
INTEGRATED ENERGY CENTRES (IECS)
DOE IeC Programme
IeCs focuses on:-
Ensuring access to affordable, accessible, clean energy and energy services
Contributing towards job creation and poverty alleviation
Enterprise development through community co-operatives & Trusts
nodal areas as per Comprehensive Rural Development Programme
DOE Partners in IeCs
IeCs model is based on partnership between: o other government departments, o communities, o municipalities and o oil companies
Small Enterprise Development Agency and DTI have a collaborative relationship with DoE on IeCs in respect of :-o enterprise development;o capacity building; and o co-operative incentive scheme.
Information on operational IeCs to be obtained
PAYMENT OF INVOICES OF SMMES& COOPERATIVES WITHIN 30 DAYS
RECOMMENDED WAY FORWARD
• The Department of Small Business should provide the Department with areas of interest where they would like the DoE to collaborate with them.
• DoE will then have an agreement with the above Department and have an well monitored implementation plan.
THANK YOU