1. PORTFOLIO COMMITTEE ON SMALL BUSINESS DEVELOPMENT Mr. Mthokozisi Mpofu Acting DDG: Programmes & Projects

2. INTRODUCTION  The DoE fully supports the development of SMMEs and Cooperatives and understands the role the SMMEs and Cooperatives play in reversing in equalities that exist in our economy.  In the midst of high record of unemployment,SMME & Cooperatives are a major contributor to job creation.  SMMEs and Cooperatives are important in improving the living and working conditions of people, facilitating essential infrastructure and services even in the most nodal areas and bringing about sustainable development.  In respect of the above,DoE will collaborate with the Department of Small Business Development in four priority areas: o Integrated Energy Centres (IeCs) o Independent Power producers (IPPs) o Solar Water Heaters (SWH) o Solar Home Systems o Biofuels o Payment of invoices of SMMEs and Cooperatives in 30 days o Public awareness on business opportunities within the energy sector

3. Independent Power Producers (IPPs)

4. Economic Development Requirements of the programme Economic Development Job CreationLocal ContentOwnership Management Control Preferential Procurement Enterprise Development Socio- Economic Development

5. Economic Development Requirements  The Economic Development Elements, which have been structured to address the objectives of the Department are as follows: Economic Development Element Specific Focus AreasPeriod in which Applicable Job Creation South African Citizens Black People Skilled Black People Local Communities Construction Measurement Period and Operating Measurement Period Local ContentSouth African services and productsConstruction Measurement Period Ownership Shareholding by Black People and Local Communities in the Project Company Shareholding by Black People EPC Contractor O&M Contractor (if any) Construction Measurement Period and Operating Measurement Period Management Control Involvement of Black People and Black Women in management Construction Measurement Period and Operating Measurement Period

6. Economic Development Requirements Economic Development Element Specific Focus AreasPeriod in which Applicable Preferential Procurement Focuses on subcontracting to: B-BBEE Procurement Qualifying Small Enterprises and Exempted Micro Enterprises (SMMEs) Women Owned Vendor Procurement Construction Measurement Period and Operating Measurement Period Enterprise Development Enterprise Development Contributions and those on Local Communities Operating Measurement Period Socio-Economic Development Socio-Economic Development Contributions and those on Local Communities Operating Measurement Period

7. SOLAR HOME SYSTEMS

8. Solar Home Systems This part of the electrification programme aimed at achieving 90% of households through high-quality non-grid solar home systems to address the current and future backlogs. In collaboration with the DSBD and municipalities DoE has facilitated the establishment of 8 Cooperatives in the Eastern Cape ( 2 in Engcobo &6 in Mbashe). 2 cooperatives in KZN (Ingwe/Ubuhlebezwe) that are still under registration. More efforts to establish additional Cooperative to for the installation of 500 Solar Home Systems are underway. Cooperatives are currently receiving training on business and technical skills on how to install and maintain Solar Home Systems. Training is provided by SEDA. A process is also underway to assist Cooperatives with their applications for the Incentive Scheme.

9. INTEGRATED ENERGY CENTRES (IECS)

10. DOE IeC Programme IeCs focuses on:-  Ensuring access to affordable, accessible, clean energy and energy services  Contributing towards job creation and poverty alleviation  Enterprise development through community co-operatives & Trusts  nodal areas as per Comprehensive Rural Development Programme

11. DOE Partners in IeCs  IeCs model is based on partnership between: o other government departments, o communities, o municipalities and o oil companies  Small Enterprise Development Agency and DTI have a collaborative relationship with DoE on IeCs in respect of :- o enterprise development; o capacity building; and o co-operative incentive scheme.  Information on operational IeCs to be obtained

12. PAYMENT OF INVOICES OF SMMES& COOPERATIVES WITHIN 30 DAYS

13. RECOMMENDED WAY FORWARD The Department of Small Business should provide the Department with areas of interest where they would like the DoE to collaborate with them. DoE will then have an agreement with the above Department and have an well monitored implementation plan.

14. THANK YOU