Purpose of the meeting

1. Purpose of the meeting • To engage with other government departments to assess the progress made to implement the ANC 53rd conference resolution on development of SMMEs and Cooperatives through public procurement and infrastructure spend. • To assess progress made by government departments to implement the 70% local procurement policy.

2. Purpose of the meeting • To assess progress made by government departments in implementing the 30% procurement from SMMEs and Cooperatives policy. • To assess progress made by the Department of Small Business and Cooperatives Development on the signing of transversal agreements with other government departments. • To assess progress made by the DSBCD in developing guidelines and a template for development of SMMEs and Cooperatives inline with the Poverty Reduction and Job Creation model adopted by the Portfolio Committee .

3. The Poverty Reduction & Job Creation focused model • The Portfolio Committee on Small Business and Cooperatives Development adopted a Poverty Reduction and Job Creation focused model. • The model seeks to create an exit of poor families from the social grant register and indigent registers of municipalities inline with the NDP goal of reducing poverty and enabling communities to become active in the process of their own development.

4. The Poverty Reduction & Job Creation focused model 3. It identifies government departments, state owned companies as a sustainable market for SMMEs and Cooperatives inline with the resolution of the 53rd ANC conference on development of SMMEs and Cooperatives through public procurement and infrastructure spend. 4. It identifies the presidential poverty nodes as priority areas for development and poverty reduction inline with the NDP and 2013 SONA in terms of development of underdeveloped areas and creation of new towns.

5. The Poverty Reduction & Job Creation focused model • It identifies the target group for development in this order of priority: • Child Headed households • Women headed households with no source of income. • Households dependent on the social grant of a pensioner or a disabled person. • Households on the indigent register of municipalities. • Unemployable youth due to lack of skills and other reasons such as skills that do not match the needs of the market or youth with prison records. • Unemployed youth with skills

6. The Poverty Reduction & Job Creation focused model • The Minister of Small Business and Cooperatives Development has added destitute former freedom fighters in the list of the target group. • It aligns skills training of the target group to service delivery needs and job creation so as to maximise benefits of limited resources inline with the budget statement framework of the Minister of Finance on shifting budget towards productivity.

7. The benefits of the model • Increased revenue base for municipalities as indigents become self-sufficient and afford to pay for services rendered by municipalities. • Alignment of programmes and resources to achieve maximum results. • Service delivery goals achieved during training phase. • Reduced dependence of poor families on government social grants and free services. • Moves the country towards becoming a developmental state with active communities.

8. Expected from Presentations of Government Departments • Has there been an interaction between the department invited here today and the DSBCD to plan on how the two departments would work together to develop SMMEs and Cooperatives with the aim of reducing poverty, inequalities and creating jobs ? • What market and skill development opportunities exist in each departments?

9. Expected from Presentations of Government Departments 3. What is the total budget expenditure on good and services of each department? 4. What steps have been taken by the department to achieved the target of 70% local procurement? 5. What steps have been taken by the department to achieve the target of 30% procurement from SMMEs and Cooperatives?

10. Expected from Presentations of Government Departments • What role is played by the department to influence big companies who are suppliers to the department to use their Corporate Social Responsibility budget in a developmental manner e.g. • RAF, Hibiscus Coast Local Municipality and SANCO Development Institute partnership on Potholes Repair Programme. • ACSA, Ludeke Primary School and SANCO Development Institute partnership on upgrading of Schools Bad Sanitation and Schools Maintenance programme.

11. Expected from Presentations of Government Departments 7. Is there a system in place in the department that encourages investment of suppliers in underdeveloped areas? • Does the department adhere to 30 days payment policy for SMMEs and Cooperatives? • Is there a person in the procurement unit of the department who has knowledge and understanding of the cooperatives concept and benefits of supporting cooperatives in the process of developing communities to become self- sufficient and self-reliant?

12. Expected from Presentations of Government Departments 10. How aligned is the strategic plan of the department is to the strategic plan of the Department of Small Business and Cooperatives Development in order to achieve the NDP goals of reducing poverty to 0% by 2030 and 11 million more jobs by 2030.