STRATEGY/POLICY FOR SMMEs AND COOPERATIVES DEPARTMENT OF MILITARY VETERANS. DATE: 05 August Together We Move South Africa Forward PRESENTATION TO PORTFOLIO COMMITTEE ON SMALL BUSINESS DEVELOPMENT (SBD).

Presentation outline 1. DMV Mandate 2. General Information 3. DMV`s Brief response on SMMEs and Cooperatives 4. Executive Authority`s (EA) Priorities 5. Conclusion 2 Together We Move South Africa Forward

1. DMV Mandate DMV derive its Legislative Mandate from the Military Veterans Act No. 18 of 2011 which state that: To provide national policy and standards on socio-economic support to military veterans and their dependents, including benefits and entitlements to help realise a dignified, unified, empowered and self-sufficient community of military veterans. 3 Together We Move South Africa Forward

2. General Information Vision "A dignified, unified, empowered and self-sufficient military veterans’ community” Mission “To facilitate delivery and co-ordinate all activities that recognize and entrench the restoration of dignity and appreciation of the contribution of Military Veterans to our freedom and Nation Building”. Values Service Charter that Underpins the Delivery of Services to Military Veterans We, as Department, pledge to: –Manage and administer the affairs of Military Veterans with dignity and compassion and to ensure that the unique needs of all Military Veterans are provided for. –This will be achieved through overall coordination and facilitation of the activities of Government and that of the private sector to ensure the provision of coherent assistance to all Military Veterans. 4 Together We Move South Africa Forward

3. DMV`s Brief response on SMMEs and Cooperatives (1) 1.Has there been an interaction between the DMV and the DSBD to plan on how the two departments would work together to develop SMMEs and Cooperatives with an aim of reducing poverty, inequalities and creating jobs?Response: No, not directly with the newly formed Department. However, formerly with the DTI and with the SEDA and SEFA as their agencies. An MOU has been concluded with SEFA, draft MOU with SEDA. We would welcome further interaction with the new Department 2. What market and skill development opportunities exist in DMV? Response: Response: The DMV offers Skills and Business Development and Training programmes for all military veterans as per Section 5(1)(d) of the Military Veterans Act and Section 11 of the Military Veterans Benefits Regulations. MVs cooperatives are registered into the DMV SCM database. MVs are trained on the establishment of Cooperatives and how to develop business plans by SEDA in all provinces and by service providers of their own choice. The DMV has also attended the International Co-operatives day in Taung with a group of 40 military veterans to expose them to what the essence of co-operatives is 5 Together We Move South Africa Forward

3. What is the total budget expenditure on good and services for DMV? Response: Response: The total budget expenditure is R263.2M 4. What steps have been taken by the DMV to achieve the target of 70% local procurement? Response: Response: Much of the DMV procuremtn is local and attempts are being made to increase the number of military veterans from procurement is sourced. 5.What steps have been taken by the DMV to achieve the target of 30% procurement from SMMEs and Cooperatives? Response: Response: They are registered on the database for exposure in business opportunities. DMV to organise tender training for MVs. DMV is also planning on hosting a military veterans co-operatives indaba to outline what they need to do to comply for enhanced scope for procurement from them Together We Move South Africa Forward6 3. DMV`s Brief response on SMMEs and Cooperatives (2)

3. DMV`s Brief response on SMMEs and Cooperatives (3) 6.What role is played by the DMV to influence big companies who are suppliers to the department to use their Corporate Social Responsibility budget in a developmental manner? Response: Response: DMV has not played a role in this regard as it still need further engagement with big companies. At the present moment there is MOUs in place for training and job opportunities for MVs, e.g. TATA, PiLog, DMV is planning to host A Cooperative Indaba during the current financial year. 7. Is there a system in place in the DMV that encourages investment of suppliers in underdeveloped areas? Response: No, it is something to be considered going forward but at a lower level there is assistance during burial times for needy Mil Vets wherein the service is done freely. 7 Together We Move South Africa Forward

3. DMV`s Brief response on SMMEs and Cooperatives (4) 8. Does the DMV adhere to 30 days payment policy for SMMEs and Cooperatives? Response: Response: Only legitimate invoices which are compliance to are paid within the 30 days payment as espoused in the FOSAD implementation plan. 9.Is there a person in the procurement unit of the DMV 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? Response: Response: No, is not available at the Department and the DMV will appreciate if the DSBD can assist with specific requirements for such person. 8 Together We Move South Africa Forward

3. DMV`s Brief response on SMMEs and Cooperatives (5) 10. How aligned is the strategic plan of the DMV to the strategic plan of the Department of Small Business Development in order to achieve the NDP goals of reducing poverty to 0% by 2030 and creation 11 million more jobs by 2030.Response: The Department has not necessarily engaged with the Strategic Plan of the Department of Small Business Development but there is resonance with the goals of the NDP as captured below:  Through the establishment of cooperatives and training provided.  Through the Executive Authority Priorities wherein the following are taken into cognisance: Chapter 3: Economy and Employment Creation of access to employment, opportunities for productivity In 2015/16FY, the department will target a reduction of 3 % unemployment in the military veteran community, Provide Military Veterans with the capabilities to seek economic opportunities. Chapter 9: Improving Education, Training and Innovation DMV will also conduct Recognition to Prior Learning (RPL) interventions to facilitate credits for learning attained by Military Veterans; and to enhance transferability of skills attained also to dependants of Military Veterans 9 Together We Move South Africa Forward

4. Executive Authority`s Priorities (1) 1.Facilitation of employment placement  Ninety seven (97) co-operatives were registered during 2014/15FY for MVs.  140 MVs were trained on cooperatives. 2015/16 DMV Projects for Employment Placement Project 1 : 98 military veterans names were provided for selection of 45 personnel for DMV security posts; Project 2 : 40 military veterans names provided for auctioneering training on DOD Obsolete Assets Disposal programme; Project 3 : 12 military veterans names provided to DMV HR for addition to Cleaning Staff; Project 4 : PiLog Project - Data Integrity Tender: 33 Names with CVs provided for consideration; Project 5 : TransNet (Admin Posts): 3 Names and CVs submitted; and Project 6 : SASSA Job opportunities in Eastern Cape: 200 names provided for 76 EPWP opportunities in SASSA in the Eastern Cape. 10 Together We Move South Africa Forward

4. Executive Authority`s Priorities (2) 2.Facilitation of or advice on business opportunities  For business opportunities, a draft plan has been developed for visiting provinces to provide training for MVs who have indicated an interest in registering cooperatives;  The DTI and SEDA will provide the training with the DMV funding training workshops as well as the registration of the cooperatives;  636 MVs were invited for Business Development Support Training (in conjunction with Small Enterprise Development Agency (SEDA);  368 Military Veterans have undergone a co-operatives assessment and training programme and are ready for registration with the Companies and Intellectual Property Commission (CIPC); Of this target, 228 have been assessed for registration on the SEDA Support Database and 140 have attended training. 268 have not responded to invitation for training; 97 MVs were registered for Co-operatives on Business Development Support database; and Memorandum of Understanding for providing access to business funding concluded with Small Enterprise Funding Agency (SEFA). 11 Together We Move South Africa Forward

5. Conclusion DMV will appreciate if the PC on SBD take cognisance of the following: MVs participate fully on the procurement processes through vigorous training; DSBD engage the department on matters that affect the welfare of military veterans; and Advices the department on business ventures that benefit the military veterans. 12 Together We Move South Africa Forward

Thank you 13 Together We Move South Africa Forward