Local Enterprise Authority (LEA) CEO, Racious Moatshe has called for greater procurement from local entities, saying Small, Medium and Micro Enterprises (SMMEs) have the potential to grow the economy and create employment.
“All government procurement should be reserved for local businesses in order to resuscitate them,” he told BusinessWeek on Wednesday.
“This will help to actually propel production within those products and services and that will have the effect of actually sustaining and creating additional employment.”
Moatshe said SMMEs would have a significant role to play within agriculture, as part of the recovery from the coronavirus (COVID-19) pandemic, for the sector has the potential to revive the economy.
He called for relevant authorities to avail more support and funding for SMMEs. Moatshe revealed as part of its strategy, LEA has targeted the agricultural sector as a way of reviving SMMEs.
According to the CEO, LEA has started training people at Glen Valley preparing them
Moatshe said they have divided their SMMEs’ portfolio according to their needs as a way of assisting them.
“We would like to measure total contribution of SMME to the GDP of the economy, the wealth that has been created, import and export opportunities as well as export-led contribution,” he said.
“Until we get this right, we will not be able to drive the right policy at the national level and be able to adequately resource the SMME development in a more sound way.”
Moatshe said in order to meet the needs of SMMEs, LEA needs to be flexible in its approach, free to respond to the changing dynamics of the business landscape.