Bhisho to boost East Cape companies

IN a strong move to boost business in the Eastern Cape and expand its economy, the government wants at least 50% of all tenders to be awarded to companies in the province.

This will ensure that the money stays here and jobs are created.

Bhisho’s “Buy Eastern Cape” campaign was highlighted by Finance MEC Sakhumzi Somyo during his budget speech on Friday.

He said there had to be a focus on improving value for money to ensure fiscal prudence.

“The strategic importance of supplychain management in service delivery, value creation, socio-economic transformation and fiscal prudence remains critical,” Somyo said.

He pointed to an alleged dodgy tender for school calculators where the government had not received the best value for its money.

It had paid large amounts for calculators that would have all the functions needed by pupils, but had instead received smaller, more basic calculators.

On how provincial departments and public entities planned to promote economic development in the Eastern Cape, Somyo said: “This will be done through their procurement processes, and in so doing ensure that at least 50% of provincial procurement is spent on goods manufactured and supplied by suppliers from within the province, including SMMEs and cooperatives.

“I must say that we are moving in the right direction on this front, as 59.9% of our R10-billion goods and services budget spend for the 2014-15 financial year went to suppliers that reside in our province, although manufacturing is located elsewhere.

“Through the intensification of campaigns such as ‘Buy Eastern Cape’, we seek to encourage our suppliers to buy products that are manufactured in the province.”

Bay convener of the National African Federated Chamber of Commerce Litemba Singapi said the announcement was a bold step by the MEC.

“To say that they will focus also [on ensuring] that manufacturing is here in the Eastern Cape is welcomed, because if it’s not manufactured here it means we’ve not dealt with the core challenges,” Singapi said.

“The question is, what measures do they have to ensure the red tape is cut?

“You will find SMMEs that are still manufacturing in their backyards and small warehouses, but the problem would be that they won’t meet government criteria and SABS approvals.”

This was not because the quality of the work was inferior, but because some of the small firms might not have the money to register with the various bodies to get specific approvals, Singapi said.

Nelson Mandela Bay Business Chamber chief executive Kevin Hustler said organised business wanted more details about the government’s focus on “Buy Eastern Cape”.

“We want greater transparency on local procurement for goods manufactured and supplied within the province,” he said.

“We want clarity on the much talked about catalytic projects – the Oceans Economy and Renewable Energy Sector, ie Thyspunt – so we can plan ahead to participate in the opportunities presented for local business.”

He welcomed the R155-million allocated to the provincial departments of economic development, environmental affairs and tourism over the next three years for the development of small, micro and medium enterprises.