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Role of seda to the development of the Second Economy vis a vis The Objectives of Asgi-SA

Role of seda to the development of the Second Economy vis a vis The Objectives of Asgi-SA Outline of the presentation Introduction Outreach Model 2007/08 Statistical Achievements 3 Pillar Strategy of Government Government interventions for Second Economy seda Support for Second Economy

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Role of seda to the development of the Second Economy vis a vis The Objectives of Asgi-SA

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  1. Role of seda to the development of the Second Economy vis a vis The Objectives of Asgi-SA

  2. Outline of the presentation • Introduction • Outreach Model 2007/08 • Statistical Achievements • 3 Pillar Strategy of Government • Government interventions for Second Economy • seda Support for Second Economy • seda’s Target Market • Conclusion

  3. Introduction • Two exciting and challenging years under the belt • Brand is growing in recognition with visible infrastructure in • place

  4. Outreach Model for 2007/8 2006/7 2007/8 8 8 PROVINCIAL OFFICES 39 Add 4 new branches = 43 BRANCHES OUTREACH UNITS = EICs / Mobile units 102 110

  5. ROLL-OUT STATUS till end March 2007 102 EICs 39 branches 8 provincial offices

  6. + 24 EICs seda Outreach : 14 973 Clients assisted 4.1 Roll-outEASTERN CAPE Existing Offices To be established in 2007/ 2008

  7. + 9 EICs seda Outreach : 6 269 Clients assisted 4 4.1 Roll-outFREE STATE

  8. + 9 EICs seda Outreach : 5 951 Clients assisted 4.1 Roll-outKWAZULU-NATAL

  9. + 11 EICs seda Outreach : 6 599 Clients assisted 4.1 Roll-outLIMPOPO Existing Offices To be established in 2007/ 2008

  10. + 12 EICs seda Outreach : 11 750 Clients assisted 4.1 Roll-outMPUMALANGA

  11. + 4 EICs seda Outreach : 24 953 Clients assisted 4.1 Roll-outNORTH WEST

  12. + 3 EICs seda Outreach : 3 117 Clients assisted 4.1 Roll-outNORTHERN CAPE

  13. + 8 EICs seda Outreach : 11 904 Clients assisted 4.1 Roll-outWESTERN CAPE Existing Offices To be established in 2007/ 2008

  14. + 24 EICs seda Outreach : 10 249 Clients assisted 4.1 Roll-outGAUTENG

  15. Statistical Achievements SUCCESS STORIES TOTAL = 366 SUCCESS STORIES

  16. Government’s Interventions for The Second Economy

  17. Three Pillar Strategy of Government • Growing the first economy • Addressing problems in the second economy • Building the social security net

  18. Government programmes for second economy intervention • Integrated and Sustainable Rural Development Strategy • ‘Designed to attain socially cohesive and stable rural communities which have viable institutions and sustainable economies’ • Urban Renewal Programme • ‘Aims to inject life into urban areas experiencing serious decay and ravaged by social ills that that discourage potential investors’ • Expanded Public Works Programme • ‘Aimed at addressing critical economic policy challenges of poverty; employment; growth and infrastructure provision’

  19. Government programmes for second economy intervention • National Spatial Development Perspective • ‘NSDP seeks to provide national principle-led guidance in all forms of planning for infrastructure investment and development spending’ • Agriculture and Land Reform Programme • ‘Contributes to poverty alleviation in rural and urban areas by reducing food prices; creating employment; increasing real wages and improving farm income’ • Small Enterprise Development and Support • ‘Provide support and development to small enterprise sector’

  20. seda support for the Second Economy

  21. TargetMarket Approximately 20% of seda’s focus will be on Medium enterprises whilst the Small, Micro (Formal, Informal) and co-operative enterprises will get 80% of the Agency’s focus

  22. Second economy interventions • Fresh produce and street trading • Linking small scale farmers to retailers • Provide training and business support to cooperative arrangements • Replicate current PTA/JHB fresh produce activities to other areas • Link street traders with small scale farmers in areas not covered by fresh produce markers • Explore possibility of cooperative formation

  23. Second economy interventions • SMME’s and micro-credit • Establishing partnership agreements with DFI’s • Work in collaboration with commercial banks and other funding institutions • Through seda branches conduct workshops on funding opportunities

  24. Second economy interventions Asgi-SA Priority Sectors Agriculture and agrarian reform: • Link with NAFU and other agricultural departments on development programmes • Link with bio-fuel development • Provide business skills to enhance commercialisation e.g. Fort Hare Nguni cattle breeding • Dialogue with Land Bank for access to finance

  25. Second economy interventions Asgi-SA Priority Sectors Tourism: • Make use existing toolkit for addressing PPP for SME participation • Partnership with tourism boards and other authorities • Do training of SME’s in collaboration with relevant institutions

  26. Second economy interventions Asgi-SA Priority Sectors Biofuels: • Work closely with DME to understand strategy development • Establish partnership with relevant research institutions in identifying opportunities for SME’s • Assist in development of small scale farmers in identified crops including NAFU

  27. Second economy interventions Asgi-SA Priority Sectors Chemicals: • Expand current initiatives with Thumisano Trust in Technology Partnership Stations (TPS) to include other areas • Explore possibilities of linking up with Chemcity in Sasolburg

  28. Second economy interventions Asgi-SA Priority Sectors Creative industries: • Identify and expand markets for craft producers through shows and exhibitions • Diversification of craft products through training and development • Assist in securing procurement of products to eliminate exploitation • Provide access to international markets

  29. Second economy interventions Asgi-SA Priority Sectors Clothing and textiles: • Assist small scale manufactures by linking them with retail buyers • Support existing industry by focusing on niche markets • Replicate and expand Clotex model into other targeted areas • Identifying opportunities for retrenched workers • Linkage with design development initiative e.g. Fashion week or Vukani Fashion Awards

  30. Second economy interventions Asgi-SA Priority Sectors Downstream minerals beneficiation: • Jewellery Cooperatives • Identify and register cooperatives • Foster partnership with mining companies • Forge closer relations with small-scale miners • Dimension stone • Encourage investment in rural communities • Mining Tourism • Implement outcomes of the studies • Capacity Building • Identify and capacitate project members

  31. OPPORTUNITIES • Better structured collaboration with partners • Growing leveraging off provincial government resources • Income generation through agency function • Cost reduction from sharing our infrastructure • Improving capacity of staff that have been through the operations cycle • Learning from mistakes that have been made • Growing awareness of seda • Opportunity to be innovative without rigid assumptions

  32. CONCLUSION • Whether seda delivers or not is not just up to seda • Seda requires a lot of support • Not the least of which is financial • Full impact will be seen in the medium to longer term

  33. THANK YOU

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