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 seda ’ s Target Market Conclusion

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

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

ROLL-OUT STATUS till end March 2007 NUMBER OF EICs PROVINCE EASTERN CAPE FREE STATE GAUTENG KWAZULU- NATAL LIMPOPO MPUMALANGA NORTH WEST NORTHEN CAPE WESTERN CAPE PROVINCIAL OFFICES Bhisho Bloemfontein Durban Polokwane Nelspruit Mafikeng Kimberley Cape Town NUMBER OF BRANCHES provincial offices 39 branches 102 EICs

Roll-out EASTERN CAPE Provincial Office: Bisho Nelson Mandela Port Elizabeth Chris Hani Queenstown O R Tambo Mthatha Amathole East London Alfred Nzo Mount Ayliff Ukhahlamba Barkley East Cacadu Jeffrey’s Bay 4.1 Existing Offices To be established in 2007/ 2008 seda Outreach : Clients assisted 24 EICs +

Roll-out FREE STATE Provincial Office: Bloemfontein Mangaung Bloemfontein Thabo Mofutsanyane Betlehem Xhariep Trompsburg Fezile Dabi Kroonstad Lejweleputswa Welkom 4 seda Outreach : Clients assisted EICs +

Roll-out KWAZULU-NATAL Provincial Office: Durban Umgungundlovu Pietermaritzburg Uthungulu Richards Bay Amajuba Newcastle Uthukela Ladysmith Ugu Port Shepstone Sisonke Kokstad Ethekwini Durban seda Outreach : Clients assisted EICs +

Roll-out LIMPOPO Provincial Office: Polokwane Capricorn Polokwane Vhembe Thohoyandou Mopani Tzaneen Sekhukhune Groblersdal Modimolle Waterberg Existing Offices To be established in 2007/ 2008 seda Outreach : Clients assisted EICs +

Roll-out MPUMALANGA Provincial Office: Nelspruit Ehlanzeni Nelspruit Nkangala Witbank Gert Sibande Secunda Bohlabela Bushbuckridge Nkomazi Malelane seda Outreach : Clients assisted EICs +

Roll-out NORTH WEST Provincial Office: Mafikeng Central Mafikeng Southern Klerksdorp Bojanala Rustenburg Bophirima Vryburg Madibeng Brits seda Outreach : Clients assisted EICs +

Roll-out NORTHERN CAPE Provincial Office: Kimberley Frances Baard Kimberley Namakwa Springbok Kgalagadi Kuruman Pixley ka Seme De Aar Siyanda Upington seda Outreach : Clients assisted EICs +

Roll-out WESTERN CAPE Provincial Office: Cape Town City of Cape Town Belville Eden George Boland Stellenbosch Central Karoo Beaufort West (satellite) Overberg Bredasdorp West Coast Mooreesburg Existing Offices To be established in 2007/ 2008 seda Outreach : Clients assisted EICs +

Roll-out GAUTENG Provincial Office: ? Tshwane Pretoria seda Outreach : Clients assisted EICs +

Statistical Achievements SUCCESS STORIES TOTAL = 366 SUCCESS STORIES

Government’s Interventions for The Second Economy

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

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 ’

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 ’

seda support for the Second Economy

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 Target Market

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

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

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 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

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 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 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 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 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 Second economy interventions Asgi-SA Priority Sectors

 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 OPPORTUNITIES

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

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