PSDP avails P32m to develop SMEs
| Wednesday November 20, 2013 16:10
The PSDP will run for three years with a budget of 2.3 million pounds (P32 million). It aims to stimulate and sustain growth through diversification of the economy while building the capacities of institutions and human resources that support the private sector.
Under the framework of the Private Sector Development Strategy (PSDS), the Ministry of Trade and Industry and BOCCIM in partnership with the EU and the Centre for the Development of Enterprises (CDE) developed the PSDP, which was launched in May this year.
To date, PSDS has identified the gains achieved thus far, the bottlenecks and interventions that will contribute towards establishing an enabling environment that will spur entrepreneurial development; attract foreign and domestic private investment while at the same time, creating business opportunities.
Speaking at a stakeholders briefing recently, a Ministry of Trade official, Pauline Monare said there is a direct link between the PSDP and the EDD. This is because strengthening the business value chains will enable SMEs to participate well in procurement, which is currently promoted through government’s purchasing power using preference margins based on companies’ turnover threshold.
“In addition, the PSDP is expected to enhance the service delivery of intermediary organisations, especially for BOCCIM to be the real private sector voice,” she stated. Monare said the business environment for SMMEs would be improved, focusing mainly on the reduction of red tape and improved access to finance. “PSDP is linked to the ongoing ease of doing business and national competitiveness reforms,” she said.
She stated that government recognises that the private sector needs strengthening for it to play this important role. “It is in this context that an appropriate private sector organisation such as BOCCIM has been tasked to become the secretariat for PSDS,” she said. It has been recommended that BOCCIM be restructured to be the apex body representing the entire private sector in the country.
In order to take advantage of the programme, Monare urged SMEs to register for assistance.
The deputy executive director of BOCCIM, Norman Moleele said they are building their capacity to be in a good position to roll out the programme to the entire business community in the country. “We are doing everything within the organisation to build capacity so that we serve the business community well,” he said. He added that they intend to reach every business within the country. Monare, who said government is helping BOCCIM to build capacity, supported Moleele’s statement.