SMME Development: Provincial Motor Transport
In 1999, the Provincial Motor Transport worked with Wesbank
to develop a SMME programme aimed at targeting emerging entrepreneurs to give
them a share of government repair contracts. The aim was to pull into the net,
micro business people sitting at the street side, repairing exhaust pipes,
windscreens or undertaking welding work. These businesses will be mentored until
they can take on engine overhauls and the like. The initiative is provisionally
known as Project EMSMA (Emerging Micro Small Medium and Agents).
Underlying Principles of the Project
- Non core services and those that can be performed more
efficiently in the private sector will be outsourced.
- SMME operations will be given preference in all
- Every effort will be made to ensure sustainable
development of SMME in geographical areas where the need has been identified.
- No compromise will be made on the standard and quality
of services rendered in keeping with Department of Transport safety standards.
- The Department remains committed to free and fair
principles (anti corruption and anti fraud).
One of the conditions of the Fleet Management contract
outsourced to Wesbank, is that 80% of the repair work has to be allocated to
emerging contractors. Wesbank is responsible for the allocation of all repair
work. Their present merchant base is 850 of which 593 of these merchants are
categorised according to SMME / EMSMA.
This proposal has been accepted by the Board of the First
National Bank in principle and will be rolled out into the entire corporate
business world of South Africa. The next phase is the implementation. The
project will be advertised as widely as possible and a database for applicants
will be developed.
The following classifications were developed and the project
had been launched by Minister Sbú Ndebele early this year.
|Type of Entity
1 or 2 staff
Work granted < R5 000 p.a.
2 or 5 staff
Work granted R5 000 to R10 000 p.a.
6 to 10 staff
1 qualified artisan
Work granted R10 000 to R150 000
> 10 staff
2 qualified artisans
Work granted > R150 000 p.a.
Capacity rated on size of premises
Accredited agent of Manufacture
Different development plans are put together for each category of merchant,
i.e. the extent of intervention will be greater for an emerging contractor.
In terms of the Road Traffic Act, all vehicles with the Gross
Vehicle Mass (GVM) exceeding 10 000 kg must be fitted with retro-reflective
material by 31 December 2000. This area provided an ideal opportunity for
true development of Previously Disadvantaged Individuals (PDI’s). Mr Mduduzi
Sithole and Qinsela Zulu who are both young and part time students were
identified as one of the suitable candidates for this opportunity. The contract
was, as a result, awarded to them. They are based in Ulundi, hard workers and
passionate about building a future for themselves. Their enthusiasm to succeed
is by far their most outstanding characteristic. Good discount prices were
negotiated on their behalf with suppliers.
The Cabinet has resolved that all Province owned vehicles
must bear registration number plates with a KZN prefix and be fitted with decals
identifying respective Departments. Provincial Motor Transport re-registered all
the vehicles that did not have KZN prefix before registration numbers. This also
provided another area for development of PDI’s. A contract to supply and fit
new registration numbers with a KZN prefix was also awarded to PDI or emerging
The Road Traffic Act requires that all vehicles with a GVM
from 7500 kg and more must be fitted with mud flaps, body under-runs and
speed limit stickers. Mr. Phillip Tabete of Phillip Panel Beaters based at
Hammarsdale has been identified to do the work. Mr. Tabete’s workshop lacks
equipment and is in a poor condition. The revenue generated from this project
will benefit him to improve his workshop conditions and be in a position to meet
required panel beating standards.
Provincial Motor Transport and Wesbank First Auto provide
close guidance, full support and monitoring. Various funding mechanisms are
being considered to facilitate the process. We are looking forward to have more
emerging contractors to mentor once applications have been invited and funding
support mechanisms are in place.
Another field that is promising is development of Transport
Officers at grass root levels as Fleet Managers. Provincial Motor Transport has
approached University of Natal to offer a Fleet Management Diploma with the view
to develop Transport Officers at lower levels. A course module is being put
together with the intention to start the programme in 2001. This is intended to
open opportunities for development and provide career path for our future Fleet
The picture below reflects some of our emerging contractors
busy at workshops, fitting retro-reflective tapes, decals and KZN registration
number plates under the guidance of Provincial Motor Transport staff and