The government needs to restore the trust entrepreneurs have in the state, and then they too will deliver on what is expected from them, according to Gauteng Enterprise Propeller (GEP) CEO Saki Zamxaka. This was why the Gauteng government was lobbying to increase R250-million that was allocated to it to assist SMMEs in the province to R500-million.
Zamxaka said that the GEP had resolved to increase the R250-million that was allocated to it last year to finance various funds to help SMMEs in the province. “The economy of Gauteng is very central to the economy of the country,” he said. “We have been given R250-million from government, but (we saw that) the most important thing was that we needed to (collaborate) with other partners to increase it from R250-million to 500-million or R1-billion.
“Of several partners we have the Industrial Development Corporation and the Small Enterprise Finance Agency, and they will be putting one Rand for each Rand we put to generate funds for SMMEs,” Zamxaka said. He said GEP would boost SMMEs in the township rental and retail sectors, amongst others, with blended financing.
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“We will be providing financial assistance through a mixture of loans, credit and grant funding with reasonable repayment terms so that we can also lessen the risks involved our side and not make it unsustainable for the government financially,” the CEO explained. Zamxaka, who was appointed CEO in April this year, told Vutivi News that the agency was looking to improve its internal controls so that it was not distracted from its mandate.
He was referring to a probe by the Special Investigating Unit on allegations of corruption and maladministration. One of the cases involved the awarding of a tender for the Township Entrepreneur Awards in 2017. The GEP’s mandate is to provide SMMEs in Gauteng with services like financial and business development support and to facilitate a conducive business environment.
“There have been some governance issues that led to some investigations, but what gave me comfort was that this was picked up by an internal audit, and we were the ones that picked up some of these challenges and (reported) them to the SIU, so it’s not like we were caught off-guard,” he said.
“We are focusing on these, because they need to be resolved quickly. Appropriate action will be taken where necessary.” Zamxaka also told Vutivi News that the agency was committed to help small businesses that were damaged during the recent civil unrest.
“We had discussions with some of the property landlords (from affected areas) and some of the retailers, and one of the issues that came up was security,” he said. “We need the police to give entrepreneurs comfort and assure business owners that they can restore their confidence and law and order when required.
“We want entrepreneurs to trust that we will be able to come in and assist those that need rebuilding of their premises. Some of them will be needing working capital because they need to pay bills and buy stock,” Zamxaka said.
