Inclusive Economy generally advocates for the implementation of programs aimed at driving socio-economic transformation and economic empowerment.
Who are we?
The Inclusive Economy business unit advocates for the implementation of programmes aimed at driving socio-economic transformation and economic empowerment. The programmes are a direct response to the prevailing socio-economic issues in the townships. Many enterprises rely heavily on government for support and development.
Measures are being devised to prioritise businesses that are self-sustainable and have potential for growth. Gauteng is exploring measures aimed at building on the rich history of cooperation, collaboration and solidarity in communities and townships.
What we do?
Inclusive Economy is a unit within the Department of Economic Development responsible for Broad-Based Black Economic Empowerment (B-BBEE), Local Economic Development (LED), Small Medium and Micro Enterprises (SMMEs) and Cooperatives Development. Its purpose is to develop and implement programmes and interventions intended to promote equitable and shared economic growth and development. The B-BBEE unit facilitates the empowerment of previously disadvantaged individuals and communities.
The functions of the B-BBEE Unit are to:
- Monitor, evaluate and report on the achievement of B-BBEE targets,
- Create an enabling environment for the implementation of B-BBEE in the province,
- Lobby and advocate for the concept of B-BBEE in the business community,
- Review and align all the government procurement procedures with the B-BBEE Strategy,
- Meaningful and informed monitoring, evaluation and reporting on the impact of the B-BBEE Strategy,
- Monitor the payment of SMMEs and Co-operatives.
The government recognises the importance and potential of township enterprises to support its programme of procuring at least 75% of locally produced goods and services as codified through the Localisation Accord.
While different legal forms of these enterprises will be supported, industrial or manufacturing cooperatives and related service cooperatives will be prioritised in the selection and development of industrial enterprises.
Government working with its partners will:
- Develop programmes to support manufacturing and productive capacity of existing township enterprises,
- Identify, promote and support new opportunities for production of goods,
- Prioritise the development of industrial or manufacturing cooperatives,
- Develop an industrial strategy, targeting eleven identified sectors to grow the Gauteng economy.
Co-operative Financial Institutions (CFIs)
A Co-operative Financial Institution (CFI) is a co-operative that provides financial services to its members. It is the umbrella term for member-based deposit taking financial co-operatives, owned and controlled by their members who have a common bond. Thus a CFI is a cooperative banking system where members borrow money from the cooperative. It is an institution that encourages savings in order to provide responsible credit and other services to its members at a fair rate. Gauteng currently has about 8 registered CFIs with about R130 million in total base assets.
The current CFIs provide different services to their members ranging from savings, loans and business development programmes among others. The provincial government is committed to expanding access to finance for township enterprises and ensuring greater movement towards self-financing by township enterprises. It will continue facilitating the development of cooperative banking and cooperative insurance owned by township households, enterprises and others. This includes the creation of a Township Economy Solidarity Fund and a Cooperative Banks Growth Fund that will comprise key stakeholders, corporative sector and township enterprises.
To start a CFI you will need the following: