Topic: How Masilonyana Local Municipality is using its procurement spend to boost local smme

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Topic How Masilonyana Local Municipality is
using its procurement spend to boost local smmes?

• Presented by
• Me Hloni Maboe - Phike, Municipal Manager for
  Masilonyana Local Municipality

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• ABOUT THE MUNICIPALITY
• A peri-urban, level 3 municipality situated in
  the Free State.
• We fall under Lejweleputswa District
  municipality.
• Head Office is in Theunissen and there are four
  other towns in the area, Brandfort, Winburg,
  Verkeerdevlei and Soutpan.
• We have 371 employees in the municipality

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• SOCIO-ECONOMIC PROFILE
• 67 of young population (that is people younger
  than 35), must enter labour market.
• There is an unemployment rate of 26-28 and
  economically-not- active 38
• Low skilled workers (56)
• elementary occupations (33)
• with only 20 white collar workers.

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• SOCIO-ECONOMIC PROFILE
• Mining dominates GDP at (24)
• Agriculture (17)
• Community Services (13)
• Manufacturing/retail are small contributors who
  need a new injection and focus
• Low household incomes.

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• SOCIO-ECONOMIC PROFILE
• In the District the average household income is
  R1824 while in Masilonyana Local Municipality the
  average income is at (R 1371)
• There is low schooling levels among community
  members.
• Conclusion There is a dire need for job creation
  and sustainable projects and proper accredited
  training.

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• BROAD OBJECTIVES TO DEAL WITH ECONOMIC
  CHALLENGES
• Aggressive Local Economic Development strategy
  and procurement policy to address the challenges
  of the community.
• Human development critical given challenges of
  illiteracy.
• Create sustainable jobs for our people
• Working in collaboration with the mines,
  agricultural sector and other established local
  businesses

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• BROAD OBJECTIVES TO DEAL WITH ECONOMIC
  CHALLENGES
• To establish and support cooperatives to convert
  second economy businesses in Masilonyana radius
  into the first economy businesses.
• To focus on agro-processing and exports of
  agricultural products.
• To also attract both national and international
  investors to the municipality
• To establish an organization with the capacity of
  national expansion.

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• KEY STAKEHOLDERS to work with for economic
  development

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• SECTORS TO DRIVE GROWTH

CORE SECTORS
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• CONSTRUCTION SECTOR - FACILITATE PARTNERSHIPS
• Bucket eradication program presented opportunity
• None of local companies had the necessary cidb
  level of grading.
• A strategy was then developed to link local
  constructors with main Constructor.
• Key elements of the strategy were to ensure that
  local companies participate fully in the
  projects.

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• CONSTRUCTION SECTOR - FACILITATE PARTNERSHIPS
• Set up Masilonyana Business Forum
• Municipal officials to not get involved with this
  process
• This process must not interfere with the legal
  tendering processes.
• Benefits of this process resulted in local
  contractors moving to better CIDB grades.
• We are working on replicating this in our other
  projects like R30/R34 and N1 roads construction.

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• CONSTRUCTION SECTOR - FACILITATE PARTNERSHIPS
• The strategy was to ensure that any tender
  awarded allocates 30-50 of the project value to
  local contractors.
• Challenges arose as to the criteria of matching
  companies.
• A transparent, fair, clean and participatory
  processes were established and followed.
• The sharing of the procurement spend must be
  across various towns within the municipal area.

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• SOME COMPANIES THAT BENEFITED FROM OUR EFFORTS
• Naledi Construction Situated in
  Theunissen/Masilo.
• Have completed an R8m bucket eradication project
  in Theunissen/Masilo.
• Scope was as follows Construction of 762
  toilets with connections and 7.7 km of pipeline.

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• SOME COMPANIES THAT BENEFITED FROM OUR EFFORTS
• Zigana Mbele construction situated in
  Brandfort/Majwemasweu.
• They have completed a R5.2m bucket eradication
  project in Brandfort/Majwemasweu successfully.
• Scope of work was as follows construction of
  1050 toilets with connections.
• Numerous joint ventures and sub contractors also
  benefitted from this process.
• Skills training and transfer needs to be improved

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• BEYOND PROCUREMENT MINE COMPANIES
• Partnerships with mining companies to develop the
  local economy.
• We work with mines in our jurisdiction towards
  achieving the above (Honouring mining charter).
• They are Beatrix, Harmony and Star Diamond as
  well as new mines in establishment phase in our
  jurisdiction.
• Eg. They are all committed to building a
  Business Development Centre for the municipality
  with other government departments .

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• CONCLUSION
• We should continue to strife to uncover new areas
  where communities should be empowered to explore
  and benefit from the economies across our country
  and beyond.
• As Masilonyana Municipality motto dictates
  Together well Succeed
• !!!RE A LEBOGA!!!