President Cyril Ramaphosa says that small, medium and micro-enterprises and cooperatives will play a key position in South Africa’s Covid-19 recovery.
In a media briefing this week, the president stated that in lots of developed and creating economies, SMMEs typically account for over 90% of all formal companies.
“They contribute considerably to GDP and create and maintain heaps of jobs in these international locations. In South Africa, whereas 98% of formal companies are SMMEs, they make a much smaller contribution to employment and GDP.
“If we are to achieve the goal of the National Development Plan for SMMEs to create at least 90% of the targeted 11 million new jobs by 2030, we need to pay far closer attention to developing small businesses.”
As the nation make the transition from aid to recovery, Ramaphosa stated it’s essential to offer assist to allow corporations to get better.
At the identical time, authorities must introduce new business processes, applied sciences and gear to help them to regulate to the brand new actuality, he stated.
“The era of big corporates creating thousands of jobs has passed. We have recognised that this is the era to open opportunities to entrepreneurs and we have set procurement targets to empower this sector.”
Ramaphosa stated that one other key ingredient of the Economic Reconstruction and Recovery Plan is localisation.
“We expect SMMEs and co-operatives to play a central role in driving localisation. They are nimble and have great insights.”
“Some work has already been done by this department to introduce SMMEs and co-operatives to wholesalers and retailers. We really need our corporates to come on board for us to build strong local capabilities.”
Ramaphosa added that authorities was not asking corporates to purchase items only for the sake of shopping for regionally.
“We are saying that they need to purchase native high quality items that may compete with those that they’re importing and that create a lot wanted jobs within the nation.
“In this regard, the state, including our state-owned enterprises, must take the lead. ”
Ramaphosa stated that the Department of Small Business Development is already supporting those who want help with certification, high quality enhancements, compliance and the like.
“There is really no excuse for not buying locally.”
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