By Ntsako Mabunda
Gauteng Department of Roads and Transport MEC Kedibone Diale-Tlabela launched the g-FleeT Management's Merchant Development Programme in Chamdor, in Krugersdorp, West Rand on Thursday, 31 July 2025.
The MEC was joined by acting Head of Department Mr. Japhter Makhafola, Mogale City's MMC for Transport, g-FleeT Management's acting CEO Poobalan Govender, CEO of Automotive Industry Development Centre (AIDC) Mr Andile Africa and a representative from Wesbank.
g-FleeT Management is the trading entity of the Department and is a provider of vehicle leasing and fleet management services for the public sector in the country. Its clients include national, Gauteng Provincial and local governments.
The programme aims to address barriers of entry into the automotive sector by empowering small, medium, and micro enterprises (SMMEs) to become sustainable suppliers oof fleet maintenance services. It targets merchants in townships, informal settlements and hostels (TISH) areas with onboarding, training, accreditation and integration into government supply chain in key sector departments and the private sector.
Giving her keynote address, MEC Diale-Tlabela recognized the work that has been done in the West Rand, including providing training for merchants, giving them opportunities to gain valuable mechanical and entrepreneurial skills to progress and establish own workshops.
She added that this initiative is a bold move by the Gauteng Provincial Government to promote inclusive economic growth.
"This is not just another project, it is a bold and deliberate step toward realizing the Gauteng Provincial Government's commitment to inclusive economic growth". She further noted that "in partnership with the private sector, we will continue to build an economy that values ambition and rewards ability regardless of one's location.".
MEC Diale-Tlabela added that "each rand invested in township merchants contributes directly to job creation and community development; this programme is about more than numbers, it is about impact, dignity and participation".
The MEC also announced that township spending by the entity's Fleet Maintenance Unit increased from 7% to 10% as of October 2024, with a clear goal to reach 30% by the end of 2025.
AIDC CEO Mr. Andile Africa indicated the organization is proud to have played a key role in this initiative by hosting, supporting, and developing merchants at the Chamdor Automotive Hub.
"Merchant Development Programme is more than just repairing vehicles, it's about repairing the structural inequalities of the past, building sustainable businesses, and creating real opportunities for people in our communities" noted Mr. Africa.
He added the AIDC provides infrastructure, compliance support, training, and broader ecosystem benefiting merchants from being in a secure, Retail Motor Industry Organisation (RMI) approved facility.
The AIDC is a subsidiary of the Gauteng Growth and Development Agency (GGDA), a state-owned entity, playing a vital role in attracting investment and new business to the province.
WesBank's Mr. Marcellus Mbanda spoke to the RT46 contract, business model, and beneficiation approach to the townships, informal settlements, and hostels (TISH) areas.
He indicated WesBank plays a key managing role in the RT46 contract, which is a transversal government contract designed to streamline the acquisition, financing, and disposal of vehicles for national and provincial departments.
Mr. Mbanda further shared that the bank "is working with about 243 merchants sitting outside the hub, benefiting through RT46."
He also announced that, since 2021, the amount spent towards repairs by township merchants has risen to R37 million.
The Merchant Development Programme is a transformative initiative and provincial government's contribution at unlocking opportunities for township-based automotive businesses.
The West Rand District municipality welcomed the programme that will serve as a catalyst for economic transformation recovery and job opportunities.