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WHERE LIES THE WEALTH FOR SUPPLIERS - SMMEs

WHERE LIES THE WEALTH FOR SUPPLIERS - SMMEs. Presented by Carol Nkambule 03 February 2011 1 st Limpopo Provincial Supply Chain Management Summit. Outline . Services offered SMMEs Business linkages / tenders LIBSA facilitated Budget 2009-11 Budget for year 2010/11 Infrastructure Budget

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WHERE LIES THE WEALTH FOR SUPPLIERS - SMMEs

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  1. WHERE LIES THE WEALTH FOR SUPPLIERS - SMMEs Presented by Carol Nkambule 03 February 2011 1st Limpopo Provincial Supply Chain Management Summit

  2. Outline • Services offered SMMEs • Business linkages / tenders LIBSA facilitated • Budget 2009-11 • Budget for year 2010/11 • Infrastructure Budget • Government spending per Dept 2009/10 • Government spending – empowerment 2009/10 • Government Spending • Inputs required • Basic infrastructure inputs • Basic goods and services inputs • Where is the wealth? • Challenges • Proposed solutions

  3. Services offered SMMEs • Business profiles – databases and tenders • Business plans • Tender advice / business linkages – leads Anglo Platinum • Training • Incubation • Access to finance – Bridging finance LimDev

  4. BUSINESS LINKAGES / TENDERS LIBSA FACILITATED

  5. Budget 2009-11

  6. Budget for year 2010/11

  7. Infrastructure Budget

  8. Government Spending • Infrastructure – Roads, Schools, Hospitals, Govt offices, houses, water reticulation infrastructure • Goods – Stationery, Furniture, protective clothing, linen, • Services - Catering, accommodation cleaning security ,

  9. Inputs required • Infrastructure – Bricks, cement, sand, crushed stone, doors and window frames, pipes, roofing, plumbing material, electrification material, • Goods – Food, stationery (books, files, pens, calendars, diaries, etc), wood for furniture making

  10. BASIC INFRASTRUCTURE INPUTS

  11. BASIC GOODS AND SERVICES INPUTS

  12. Where is the wealth? • Infrastructure inputs • Goods and services inputs • New manufacturing enterprises for the inputs • New wholesalers, fresh produce market for local small scale farmers

  13. CHALLENGES • Current legislation provides for awarding contracts or orders to the first tier suppliers • Tenders issued for one big project with no requirements for the supplier to buy locally and from SMMEs and PDIs • Current empowerment point system looks at the main suppliers disregarding the manufacturers, distributors • Manufacturing capacity not yet fully developed for some products • Some inputs are monopolized • Suppliers are tied to distributors/wholesalers with easy access to credit even though it is at higher prices

  14. PROPOSED SOLUTIONS • Impose BEE requirements to the suppliers of suppliers or manufacturers of inputs • Support new manufacturers for specific products to be linked to bigger infrastructure projects – buy directly from manufacturers • Develop incentives for suppliers buying locally from PDIs • Government proactive and deliberate ring-fencing of specific products so manufacturers can be developed for established markets.

  15. Thank you

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