2017-2018 BUDGET: City injects more resources into SMME development

24 May 2017

 

The City of Johannesburg plans to increase the number of its SME Hubs from the existing seven to 14 in the 2017-2018 financial year.

 

Member of the Mayoral Committee for Finance Cllr Rabelani Dagada announced the major move as he tabled the City’s R55.9 billion Budget at Metro Centre in Braamfontein on Tuesday May 23. This will bring the total expenditure on the hubs to R16 million in the new financial year.

“Our goal is to have two hubs in each of Johannesburg’s seven regions, where young prospective entrepreneurs can receive support. We expect to increase the number of SMMEs supported through the SME Hubs per month to 1 250 by June 2018,” MMC Dagada said.

He said by helping about 2 000 SMMEs per month by 2021, the City would increase the SMME programmes fourfold. Although the previous administration had set the investment and business facilitation target for SMMEs at R4.5 billion in the 2016-2017 financial year, Cllr Dagada said the new administration intended to increase it to R8.5 billion in 2017-2018 and ultimately to R25 billion in 2019-2020.

“The Executive Mayor, Councillor Herman Mashaba, has made it clear that there are no silver bullets to job creation. We will not be announcing fanciful projects in this Budget to create jobs because economic growth in our city depends on a much broader approach to growing the economy.

“Through the provision of services, we need to create the environment for economic growth. It is without doubt that this administration is putting its money where its mouth is – to grow the economy and create jobs for our people,” the MMC said.

Cllr Dagada also announced that R12 million had been allocated to the commissioning and operations of the Alex-Marlboro Automotive Hub and the Alexandra Shared Industrial Production Facility to boost economic activity.

He said equipping the youth with skills and expertise, which would allow them to participate in the economy, was an important intervention to ensure the economy grew and created jobs. Cllr Dagada added that R10 million had been allocated for artisan development training programmes in the 2017-2018 financial year.