Address by Phelisa Nkomo on behalf of the Gauteng MEC for Economic Development, Environment, Agriculture and Rural Development on the Occasion of the WOVSA International Women’s Co-operatives Indaba on 23 August 2016.
Honourable Deputy Ministers
Honourable MEC
Programme Director
Esteemed Guests
Members of Media
Ladies and Gentlemen
It is our esteemed honour as the GCR government to be a part of this groundbreaking Indaba and to be given an opportunity to contribute in a manner that will help direct co-operative development within Gauteng City Region.
In the post 1994 dispensation whilst poverty has declined in general for South Africans as a whole, statistics tell us that females are much more likely to be poor than males. In fact, African and coloured females still experience high poverty rates relative to Asian and white females. In South Africa, females account for more than half the population and yet statistics tell us that females and female-headed households have, on average, lower access to both public and private assets than males and male-headed households. There has been much progress made over the past twenty years or so in bridging the economic gap between males and females, but clearly much more still needs to be done to improve the lot of females.
Programme Director
In investing in women and working to eliminate inequalities, poverty can be eliminated and the entire country can better its chances of competing and being a strong global player. When we talk about emancipating women, we are talking about enhancing and developing the capacity of women to bring about economic change for themselves, through their own initiatives without any unjust, unfair social hindrances limiting them. In Gauteng City Region (GCR), we have made a commitment as government to build lasting, transformative partnerships that will lead to a transformed, re-industrialised , sustainable and inclusive economy that brings millions of black people, women, youth and people with disabilities into productive economic activity and ownership of the wealth of the nation.
We have focused on Transforming, Modernising and Re-industrialising the GCR economy, with a specific emphasis on revitalising the township economy out of a firm realisation that GDP growth is not enough if it does not come with mass job creation capabilities. A growth path that does not contribute to tackling poverty, inequality and the marginalisation of women is unsustainable and undesirable for us.
Esteemed Guests
Our TMR drive is underpinned by the realisation that SMMEs and Co-operatives are significant drivers of economic growth and job creation as highlighted in the NDP. SMMEs and co-operatives have a critical role to play in driving more inclusive and sustainable development, are vital for development of industries and corporations (Black Industrialisation) and critical for improving living standards, raising productivity and achieving inclusive economic growth as well as social cohesion.
In this regard, we as GCRs government have undertaken certain interventions that we believe will create successful SMMEs and Co-operatives that will contribute towards building a thriving economy that has concrete benefits for a large majority of its citizens.
We are:
- Looking at developing a SMMEs and Co-operatives Ecosystem at the beginning of 2017 to ensure the realisation of our TMTR agenda and the resuscitation of the labour-intensive manufacturing sector. The Ecosystem will bring SETAs, institutions of higher learning, the private sector, government, funders, research bodies and experts together with the aim of developing sustainable SMMEs and Co-operatives to the point where they play a catalytic role in growing the GCR economy and improving lives. Here we intend to assist SMMEs and Co-operatives with manufacturing, marketing and project preparation skills. The development of quality products, decent productive skills and attraction of investment in the envisaged Ecosystem will assist in addressing the skills deficit, low level of exports and local content that our economy has in the past been characterised by.
- We have established about 9 co-operative banking institutions in GCR, serving about 13000 member-owners with nearly R100 million of member savings, about R93 million low-cost loans issued to members and combined assets of R124 million.
- More co-operative banking institutions are in the process of being established by community and worker organisations within GCR and we are playing a critical role in driving this.
- Plan to host a National Indaba on co-operative banking within GCR.
- We have committed to giving increased finance for financial co-operatives, worker co-operatives and consumer co-operatives through structured capacity building programmes using our agencies and funding institutions.
- We have engaged over 250 JSE listed firms that have committed to supporting the township economy revitalisation drive through SMME and Co-operative development.
- The Public Investment Corporation has put aside funding worth billions of rands for the development of SMMEs and Co-operatives in order to help us revitalise and mainstream the township economy.
- We have committed to working through our agencies to increase the number and scale of township enterprises, including co-operatives involved in manufacturing and productive activities.
- Our broadband rollout throughout the province is geared towards benefitting and developing township SMMEs and co-operatives.
- Our agencies are working hard at easing the cost of doing business for SMMEs and co-operatives, giving financial and technical support, clustering co-operatives together so they can enjoy the benefits of large scale production and collective bargaining.
- We are partnering with the private sector to create access to new markets for co-operatives and give them a share of the manufacturing and productive value chain as well as opening up new markets within the rest of Africa for them through our investment engagements, as part of our drive to take the lead in the re-industrialisation of Africa.
- We are promoting community-owned retail stores in order to encourage local control of township based retail and wholesale stores as well as develop township markets.
- There are massive opportunities for co-operatives in our township tourism programme which identifies and clusters township experiences in 20 prioritised townships in all regions in GCR. Tourism has low barriers to entry for employment and entrepreneurial opportunities and has the added benefit of creating employment right where people live. We are also working at linking strategic townships within GCR with African markets.
- We have identified exciting opportunities within the agricultural sector, specifically within agro-processing where co-operatives can find expression and capture a significant share of the value chain. We have identified agro-processing as a sector that has the potential to give us the industrial impetus that can create jobs and address macro-economic challenges. (aquaculture, horticulture).
- We want to elevate the anchor role played by stokvels, burial societies, township taxi/transport economy and related value chain opportunities, Cooperative Financial Institutions, township waste economy, micro-enterprises and profile the diverse and unique characteristics of the Township economy.
- The GCR government has established a Working Group on Burial Societies and Stokvels to work towards the convening of the first Provincial Burial Society and Stokvel Conference which will be preceded by regional meetings where participants will identify key projects and activities to empower burial societies and stokvels and their members.
- There are also significant opportunities for co-operatives within waste management and the waste economy. Our five developmental corridors have a responsibility to better manage and minimise waste. This responsibility is enforced through Gauteng Waste Minimisation Policy and implemented by municipalities.The environmental economy offers higher job creation possibilities than conventional technologies. Studies investigating job creation potential in the sector show that the sector has great job creation potential. SMME and co-operative development is also a natural off-shoot of the environmental economy. With the appropriate incentives and outsourcing, there is an opportunity for SMME and co-operative development in the supply chain of new industry.Job creation and SMME (co-operative) development potential exists in the waste sector and water demand management.
- We have set ourselves a goal of 30% of our procurement spend going to township enterprises by 2019 (great news for co-ops) and are aiming to have 50% of our procurement spend going to women-owned enterprises by 2020. We currently have over 400 enterprises owned and operated by women benefitting from our procurement spend.
Our goal is to transform, modernise and re-industrialise the GCR economy with SMMEs and Co-operatives at the forefront of that agenda. We are working hard, in partnership with various stakeholders at creating new industries, new economic nodes that will build our economy, create jobs, improve lives and bring about the structural transformation that is necessary to make GCRs economy sustainable and beneficial to all. We encourage you to take advantage of the opportunities created to build sustainable co-operatives that will contribute positively in this regard.
Malibongwe Igama Lama Khosikazi.
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