PORTFOLIO COMMITTEE ON SMALL BUSINESS DEVELOPMENT

Mr. Mthokozisi MpofuActing DDG: Programmes & Projects

INTRODUCTION The DoE fully supports the development of SMMEs and Cooperatives and

understands the role the SMMEs and Cooperatives play in reversing in equalities that exist in our economy.

In the midst of high record of unemployment ,SMME & Cooperatives are a major contributor to job creation.

SMMEs and Cooperatives are important in improving the living and working conditions of people, facilitating essential infrastructure and services even in the most nodal areas and bringing about sustainable development.

In respect of the above ,DoE will collaborate with the Department of Small Business Development in four priority areas:o Integrated Energy Centres (IeCs)o Independent Power producers (IPPs) o Solar Water Heaters (SWH)o Solar Home Systemso Biofuelso Payment of invoices of SMMEs and Cooperatives in 30 dayso Public awareness on business opportunities within the energy sector

Independent Power Producers (IPPs)

Economic Development Requirements of the programme

Economic Development Requirements The Economic Development Elements, which have been structured to

address the objectives of the Department are as follows:

Economic Development

Element

Specific Focus Areas Period in which Applicable

Job Creation • South African Citizens• Black People• Skilled Black People• Local Communities

Construction Measurement Period and Operating Measurement Period

Local Content South African services and products Construction Measurement Period

Ownership • Shareholding by Black People and Local Communities in the Project Company

• Shareholding by Black People • EPC Contractor• O&M Contractor (if any)

Construction Measurement Period and Operating Measurement Period

Management Control

Involvement of Black People and Black Women in management

Construction Measurement Period and Operating Measurement Period

Economic Development Requirements

Economic Development

Element

Specific Focus Areas Period in which Applicable

Preferential Procurement

Focuses on subcontracting to:•B-BBEE Procurement•Qualifying Small Enterprises and Exempted Micro Enterprises (SMMEs)•Women Owned Vendor Procurement

Construction Measurement Period and Operating Measurement Period

Enterprise Development

Enterprise Development Contributions and those on Local Communities

Operating Measurement Period

Socio-Economic Development

Socio-Economic Development Contributions and those on Local Communities

Operating Measurement Period

SOLAR HOME SYSTEMS

Solar Home Systems

• This part of the electrification programme aimed at achieving 90% of households through high-quality non-grid solar home systems to address the current and future backlogs.

• In collaboration with the DSBD and municipalities DoE has facilitated the establishment of 8 Cooperatives in the Eastern Cape ( 2 in Engcobo &6 in Mbashe).

• 2 cooperatives in KZN (Ingwe/Ubuhlebezwe) that are still under registration.• More efforts to establish additional Cooperative to for the installation of 500

Solar Home Systems are underway. • Cooperatives are currently receiving training on business and technical skills

on how to install and maintain Solar Home Systems. Training is provided by SEDA.

• A process is also underway to assist Cooperatives with their applications for the Incentive Scheme.

INTEGRATED ENERGY CENTRES (IECS)

DOE IeC Programme

IeCs focuses on:-

Ensuring access to affordable, accessible, clean energy and energy services

Contributing towards job creation and poverty alleviation

Enterprise development through community co-operatives & Trusts

nodal areas as per Comprehensive Rural Development Programme

DOE Partners in IeCs

IeCs model is based on partnership between: o other government departments, o communities, o municipalities and o oil companies

Small Enterprise Development Agency and DTI have a collaborative relationship with DoE on IeCs in respect of :-o enterprise development;o capacity building; and o co-operative incentive scheme.

Information on operational IeCs to be obtained

PAYMENT OF INVOICES OF SMMES& COOPERATIVES WITHIN 30 DAYS

RECOMMENDED WAY FORWARD

• The Department of Small Business should provide the Department with areas of interest where they would like the DoE to collaborate with them.

• DoE will then have an agreement with the above Department and have an well monitored implementation plan.

THANK YOU