ENTERPRISE DEVELOPMENT PILOT PROJECT
- Reference: P-ZA-IE0-003
- Approval date: 23/04/2015
- Start date: 12/11/2015
- Appraisal Date: 29/08/2014
- Status: OngoingOnGo
- Implementing Agency: --
- Location: Country-Wide
1Project Objectives: The overall development objective is to contribute towards job creation and poverty reduction through supporting enterprise development in South Africa. 2 Project Components: The major activities under each of the three mutually reinforcing components of the pilot project are summarized in the sections below while further details are found in Annex I.
3 Component 1: Supporting Local Economic Development (LED)
Five key activities shall be conducted under this component, to support LED in six pilot District Municipalities and provide develop opportunities for SMME growth. The six pilot District Municipalities shall be following: Sekhukhune, Lejweleputswa, West Rand, Nkangala, Waterberg and Bojanala. The six District Municipalities comprise a total of 31 Local Municipalities with a total population of 6,020,461.00 . The following are the main activities:
Supporting skills, infrastructure and enterprise development in South Africa.
The Industrial Park Revitalisation and Resuscitation Programme is anchored in South Africa's New Growth Path (NGP, 2010) and the Industrial Policy Action Plan (IPAP, 2014-2017) and the Programme is formulated to contribute to the attainment of the goals of the countries Industrial Policies and Strategies. In order to achieve the GoSA's objective of creating 5 million jobs and reducing the unemployment rate to 15% by 2020, the NGP aims to increase annual economic growth to sustainable rates of between 6% and 7% between 2010 and 2020. The New Growth Path identified job drivers to which the provinces of the country are to align their development plans in accordance with their comparative and competitive advantages. The Industrial Policy Action Plan (2014 - 2017) has equally reemphasised the key sectors in which provinces should prioritise their industrial development efforts on in order to support employment creation as contained in the National Industrial Policy Framework and the Provincial Employment, Growth and Development Plans. These sectors include infrastructure; the agricultural value-chain; the mining value-chain; the green economy; and the manufacturing sectors.
In order to migrate from the resource-based economic development and growth, the GoSA has recognized the need to strengthen the manufacturing sector of the economy and to provide the required socioeconomic infrastructure. The promotion of Industrial Parks contributes to the attainment of this objective through the implementation of industrialisation, diversification and regional development of the country. The support to be provided under the proposed project will enable the development of a blue print and a model to guide the revitalization of state-owned Industrial Parks in South Africa and thereby contribute towards sustaining industrial growth, accelerating industrial restructuring and raising the level of competitiveness of the economy. The support will enable the conducting of a Detailed Pre-Investment Study for the upgrade and expansion of State Owned Industrial Parks located in the former homelands and townships of South Africa; and the development of a Long- Term Strategic Plan (Implementation Model) for the revitalization of the Industrial Parks. The Strategic Plan shall include a sustainable capital investment programme (bankable subprojects) and define options for revitalising existing Industrial Parks and developing new ones.
The Implementation Model for the Industrial Parks Programme (Strategic Plan) shall provide details on:
(i) the expected development of the market, infrastructure requirements and institutional arrangements for the operation of revitalized Industrial Parks;
(ii) the optimal market positioning of the Industrial Parks Programme, taking into account National Policies on industrialisation and regional development as well as support to underserviced areas and to SMMEs in the manufacturing sector;
(iii) the appropriate business strategy to enable the GoSA to enhance the viability of existing Industrial Parks and implement new ones; and
(iv) the short and long-term capital investments required for the implementation of the Strategic Plan.
The major outputs of the pilot project will be the following:
BESONG Raymond Eyoh - OSHD1