Gauteng government backs township-based firms with contracts

Paul Snell is managing editor at Supply Management
27 October 2015

The Gauteng Provincial Government in South Africa has pledged to give all contracts worth less than R500,000 to township-based businesses.

This commitment was made as the authority also announced a target of spending 30 per cent of its budget with township firms.

At the launch of its ‘fix your business’ campaign in Ivory Park, Johannesburg, Lebogang Maile, member of the Gauteng executive council for economic development, environment agriculture and rural development, said: “From now on there will be no excuses for any government department or agency to overlook township businesses in procurement processes.”

Maile said township firms are providing linen to provincial hospitals, and 40 per cent of the fresh produce hospitals purchase comes from black farmers. There is a target to double this figure by 2016.

“This government takes the mission to revitalise township economies very seriously,” Maile added.

The ‘fix your business’ campaign intends to register 10,000 township SMEs with a turnover lower than R1 million. The hope is that by registering small businesses in townships, large companies will not be able to ignore them.

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