By: Noxolo Majavu
A total of R1.0 billion has been spent on procuring from smaller businesses by the Coega SMME Development Programme, which is linked to the Coega Development Corporation’s Special Economic Zone (SEZ) in the Eastern Cape. It was announced this week that R501.8 million was spent on SMMEs owned by black men in the 2023/24 financial year, R364.5-million on SMMEs owned by black women, and over R97.9 million on those owned by youth.
“This achievement equates to 69.42% of the total spend for the year and relates to the overall spend allocated to SMMEs across the organisation’s diverse infrastructure development portfolio, which includes the Department of Health, the Department of Education, and the Department of Public Works and Infrastructure, amongst others,” reads a media statement.
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Meanwhile, Coega’s SMME Development Programme Manager, Unathi Maholwana explained that over R400 million was reported in the last quarter of the financial year, representing 40% of the total spend. “We have a strategic outcome which speaks directly to increasing economic opportunities for the marginalised through, amongst other programs, advancing the meaningful economic participation and gainful employment of SMMEs,” Maholwana explained.
In addition to developing and operating the 9,003ha SEZ and Nelson Mandela Logistics Park in the Nelson Mandela Bay Municipality, Coega also facilitates as an implementation agent on various government contracts for a range of infrastructure and facility maintenance projects. During the 2023/24 financial year, Coega trained 150 SMME beneficiaries across various skill sets to the value of over R320,000.
“Coega’s SMME Development Programme places a strong emphasis on the training and upskilling of beneficiaries. Our training focused mainly on Construction Supervision NQF level 4 and New Venture Creation NQF level 2,” added Maholwana. The SMME programme facilitates the growth of small to medium-sized businesses during the construction process of various infrastructure projects.
Speaking on how SEZs could be beneficial to SMMEs, Cosatu Parliamentary coordinator Mathew Parks said that these zones could elevate smaller businesses by pooling together critical infrastructure, support, resources, value chains, customers, and skilled workers needed by emerging businesses to grow. Parks added that SEZs were key to growth in emerging economies such as China and Vietnam.
However, impediments to SMME growth could include geographic inaccessibility, a lack of awareness, insufficient financial capital, and a fear of not attracting customer orders. “The government needs to ensure SEZs are supported by access to infrastructure, including ports, rail, and roads, as well as electricity, water, and security, are close to workers, and have in place potential customers and access to credit,” Parks noted.
He also said that the current SEZs were still mostly in their infancy and needed more support and attention, including from the private sector, as the government on its own could not do everything. “Whilst we welcome such initiatives, it’s important they include the needs of workers to earn a living wage, to have their labor rights protected, and create jobs and investments for local communities,” Parks said.
