New Transnet initiative aims to nurture small enterprises

Transnet SOC today launched its Enterprise Development Hub in Johannesburg as the state-owned company’s drive to expand opportunities for smaller enterprises and new entrants, especially black-owned entities, gathers momentum. The Hub, the first of which will be at the Carlton Centre – Transnet’s head office – will be a one-stop shop for entrepreneurs and potential suppliers to Transnet. Services on offer include business development, business registration, procurement advisory services, tax registration and compliance, financial support and guidance on black economic empowerment requirements. The plan is to roll out the concept across the country. Speaking at the launch attended by Public Enterprises Minister Malusi Gigaba, Transnet group chief executive, Brian Molefe said: “We have identified the need to create an enabling environment for small players to take full advantage of the economic opportunities presented by our investment programme. Additionally, our intention is to assist black-owned entities that struggle to build their businesses into sustainable and profitable entities.” Gigaba said statistics showed that while small businesses in developed countries contributed around 50 percent to the economy, South Africa’s small businesses contribute a disappointing 30 percent to Gross Domestic Product. The Hub, which operates five days a week with a staff complement of 10 people, is a partnership with the South African Revenue Service, Gauteng Enterprise Propeller, BEE Verification Agency, National Youth Development Agency, Small Enterprise Development Agency and the Department of Trade and Industry’s Companies Intellectual Property Commission. Transnet provides the bulk of the funding while the partners provide advice and expertise on their respective areas. Molefe said the partnership was expected to cultivate strategic relationships between Transnet, provincial and national economic development institutions, and provide small businesses access to financial and non-financial support.