Striving to expand opportunities for smaller black owned enterprises, Transnet has opened the first of its Enterprise Development Hubs in Johannesburg.

Situated at the Carlton Centre, Transnet’s head office, the Hub will be a one-stop shop for entrepreneurs and potential suppliers to Transnet. Services on offer include business development, business registration, procurement advisory services, tax registration and compliance, financial support and guidance on black economic empowerment requirements.

The plan is to roll out the concept across the country.

Brian Molefe, Transnet Group Chief Executive, says, “We have identified the need to create an enabling environment for small players to take full advantage of the economic opportunities presented by our investment programme.  Additionally, our intention is to assist black-owned entities that struggle to build their businesses into sustainable and profitable entities.”

Although the Hub will primarily target potential suppliers to Transnet, budding entrepreneurs will also receive advice on a broad range of opportunities.

Malusi Gigaba, minister of Public Enterprises, speaking at the opening of the Hub said, “Statistics show that while small businesses in developed countries contribute around 50 percent to the economy, South Africa’s small businesses contribute a disappointing 30 percent to Gross Domestic Product.”

“Our aim is to increase the participation of small businesses in the mainstream economy, as they have been identified as being key to unlocking economic growth. More than 12 million South Africans rely directly on small businesses for their livelihood.  Small enterprises in South Africa employ between 60% and 70% of the employable population. I therefore believe that it is our responsibility as government to harness this opportunity. “

The Hub will operate five days a week with a staff complement of 10 people, and is a partnership with the South African Revenue Service, Gauteng Enterprise Propeller, BEE Verification Agency, National Youth Development Agency, Small Enterprise Development Agency and the Department of Trade and Industry’s Companies Intellectual Property Commission.

Transnet provides the bulk of the funding while the partners provide advice and expertise on their respective areas.

Gigaga concludes, “It is our firm belief that the Hub will provide meaningful contribution in supporting and promoting viable and sustainable SMMEs that will have direct impact on the economy through job creation. In that regard, we have committed the SOCs under our stewardship to taking the lead in this drive. I am proud to open and announce this Hub as the first of our initiatives.”

Transnet’s other current enterprise development initiatives include:

•  Transnet Itireleng Fund is a collaborative effort between Transnet and the Gauteng Enterprise Propeller (GEP) aimed at encouraging the participation of SMMEs in the green economy, agri-processing, manufacturing (steel-related industries) and construction. This fund provides financial and non-financial support to black women-owned, black-owned, black youth-owned, and people living with disabilities companies in Gauteng.

•  Transnet, Shanduka Black Umbrellas Incubation is a non-financial support service aimed at incubating 100 percent black-owned SMMEs, which meet Transnet’s supply chain needs. The initiative is set to benefit the KwaZulu-Natal, Richards Bay and Eastern Cape (Coega) areas.

•  Transnet, SEDA Supplier Development offers non-financial support services aimed at strengthening the performance of suppliers, enabling them to be globally competitive. The target market is black-owned suppliers within Transnet’s database.

•  The Transnet Canteen Project  was set up  to accelerate the development of Black women-owned Exempted Micro Enterprises through varied non-financial support services such as office space, the use of equipment, furniture as well as specific training and mentoring interventions. The fund targets catering businesses.