/ 8 November 2007

Cabinet gives green light for spending on SMMEs

The Cabinet has approved 85% of government spending on a number of products and services procured from small, medium and micro enterprises (SMMEs). This measure is intended to grow SMMEs and increase demand for goods and services from the sector, government communications head Themba Maseko said on Thursday.

The Cabinet has approved 85% of government spending on a number of products and services procured from small, medium and micro enterprises (SMMEs).

This measure is intended to grow SMMEs and increase demand for goods and services from the sector, government communications head Themba Maseko told a media briefing on Thursday.

The products and services include advertising, media and communications, interior and exterior cleaning services and product supplies, clothing and textiles, and computer equipment and consumable supplies.

Others are interior and exterior furniture and decor, events coordination and management, maintenance, repairs, construction and office space, travel coordination and shuttle services, food perishables and supplies, and stationery and printing.

Maseko said government-funded small-enterprise support agencies will provide dedicated financial and non-financial procurement-based support for these products.

The National Treasury will issue guidelines to all national and provincial departments to ensure implementation, monitoring and reporting.

Wednesday’s forthnightly Cabinet meeting also agreed that the 30-day payment rule to small enterprises for goods and services rendered to all government departments will be enforced with immediate effect.

”Government is of the view that this measure will facilitate better cash-flow management and ensure the sustainability of small enterprises,” Maseko said.

This measure will be monitored and enforced through, among other things, inclusion in the performance contracts of all accounting officers.

The Small Enterprise Development Agency (Seda) will set up a call centre to handle complaints from SMMEs about late payments by departments.

The Auditor General will also be asked to report on this matter in the annual audit reports.

Maseko said the Trade and Industry Department will enhance its capacity to coordinate all efforts to implement the integrated small-enterprise development strategy across all spheres, monitor implementation, and ensure that SMME intervention is synchronised with initiatives of state-owned enterprises. — Sapa