Home » WORLD SMME DAY: BUILDING CAPACITY WITHIN THE CONSTRUCTION INDUSTRY

WORLD SMME DAY: BUILDING CAPACITY WITHIN THE CONSTRUCTION INDUSTRY

by Tia

Micro, Small, and Medium-Sized Enterprise Day is on 27 June. This day celebrates and recognizes the SMMEs’ role in creating jobs and promoting economic growth.

The Johannesburg Development Agency (JDA) Economic Empowerment Programme focuses on skills development and capacity within the construction industry in Johannesburg, optimizing the contribution to inclusive economic growth and empowerment and the transformation of the construction industry.

The JDA’s mission directs it to create a conducive environment for economic empowerment and makes use of programmes for the development of SMMEs that aim to:

  • Develop skills and capacity within the construction industry in Johannesburg
  • Optimise the JDA’s contribution to inclusive economic growth and empowerment, and the transformation of the construction industry; and
  • Establish a monitoring and reporting system to measure the impact of the JDA’s managing contractor development programme.

SMMEs are an essential stakeholder group to be engaged in local area projects both for determining the economic conditions and opportunities within areas and for identifying opportunities for enhancing opportunities for small business in development areas and directly in JDA projects, JDA acting CEO Themba Mathibe said.

In terms of small, medium and micro enterprise (SMME)  and entrepreneurial support, the JDA aims to increase  the number of local emerging contractors from previously disadvantaged communities, used in capital projects carried out in various communities, as well as the number  of local construction jobs and Expanded Public Works Programme (EPWP) opportunities created  as well as empowering women and youth in construction.

The JDA has, as part of its economic development programme, supported SMME through subcontracting work in the projects that were running throughout the financial year and by ensuring that procurement focuses on empowering SMMEs. As a result, 48% of the JDA total expenditure was spent on SMMEs. This means that the SMME share of JDA’s operating and capital expenditure was R415,836,847.13.

The agency also recognizes the need to consolidate and  extend these practices by designing and implementing a programme that will drive the achievement of  empowerment objectives, and align projects and approaches to address the challenges facing previously disadvantaged enterprises.

The EPWP as one of government’s key programmes aimed at providing poverty and income relief through temporary work for the unemployed. The programme remains a critical policy instrument to tackle unemployment and reduce poverty as government grapples with high levels of joblessness. For the 2022/23 financial year, the JDA created a total of 368 EPWP jobs created this programme.

In terms of Black Economic Empowerment, for the 2022/23 financial year, the overall BBBEE share of expenditure was R932 219 066 which translates into an achievement of 109% BBBEE claimed.

“The JDA is dedicated to developing skills and capacity within the construction industry, ensuring that our efforts contribute to inclusive growth and the transformation of our economy. The JDA is building a brighter, more prosperous future for all as a collective”, he noted.

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