Mogale City executive mayor, the Honourable Clr. Koketso Calvin Seerane’s keynote address at the Mogale City Plato Project launch held at the Banquet Hall, Krugersdorp Civic Centre, Mogale City 23 May 2007

23 May 2007

Clr. Noluthando Mangole, Speaker of Council;
Clr. Caroline Setsiba, Speaker of the Randfontein Municipality;
Members of the Mogale City Mayoral Committee in attendance this evening;
Chief Whip Clr. Boyce Maneli
Mr. Dan Mashitisho, our Municipal Manager;
Delegation from Bitou Municipality;
Miss Lien De Zutter from the Flanders Chamber of Commerce and Industry in Belgium;
Mr. Cristopher Verhaeghe, beneficiary of the Plato Project in Belgium;
Municipal Managers from our sister municipalities in the West Rand;
Senior management of Mogale City Local Municipality;
Representative from the Small Enterprise Development Agency;
Representatives from the Gauteng Enterprise Propeller;
Mrs. Noluyolo Malgas and Mrs. Patience Keebine, Mogale City Plato project mentors;
Members of the Board of the West Rand Development Agency;
SMME owners in Mogale Ci:ty;
Other officials from Mogale City Local Municipality;
Distinguished guests and Ladies and Gentlemen:

Programme director, Mogale City is part of a province that is said to be the economic hub of Southern Africa. Gauteng is divided into six municipal governance areas made up of three metropolitan and three districts municipal councils, including our own West Rand. Our province accounts for 33% of the country's GDP, and according to the recent statistics quoted in the Gauteng Growth and Development Strategy, its economy is growing at 3.3%. But according to the National Development Agency, despite this positive outlook, Gauteng has an unemployment rate of between 28% and 38%, depending on whether you want to adopt a narrow or a broad definition. Without a doubt, our province exemplifies the nations theory of first and second economy, where the first economy is a section of our country that is benefiting from the country's much-talked about economic growth, and the second economy being the section that is characterized by low levels of education and skills, and therefore unable to benefit from the country's technology and information driven growth. The second economy makes the bulk of the 38% unemployment.

In our city, like in many other parts of our country, there are vastly affluent parts that have well-organised and powerful communities, who are influential; and extremely poor areas that are found inside and on the outskirts of Black townships, and in peri-urban areas isolated in remote parts of our city. In these areas communities are organized in groups that are characterized by internal strife, and without capacity – both human and financial. It is this second economy, together with the rest of it in the entire province, that makes up a large portion of the 10.9% that is Gauteng's share of the country's national poverty problem.

It is no secret, Programme director, that our country requires an economy that can meet the needs of all our economic citizens in a sustainable manner. This is possible if our economy builds on the full potential of all persons and communities across the length and breadth of our country. Accordingly, government enacted a number of specific laws to address economic inequalities in our country, some of which focused on SMMEs. In 1995, a national strategy for the development and promotion of small business in South Africa was tabled in Parliament. The creation of new Black-owned and Black-controlled enterprises was seen as a key component of the strategy. The National Small Business Act was introduced in 1996 to provide an enabling environment for small, medium and micro-enterprises (SMMEs) and, to establish several institutions to provide financial and other support to entrepreneurs. These institutions, Khula and Ntsika, have targeted substantial proportions of their programmes at Black entrepreneurs.

Government further pronounced on public sector procurement reform. The approach here recognized that government, as the largest buyer of goods and services in the economy, had the responsibility to leverage this purchasing power in support of its economic policy objectives of broad-based black economic empowerment, small enterprise development, and labour-intensive construction. For our part in Mogale City we have mechanisms in place to give effect to a preferential procurement policy. These include, amongst others, that the tendering process be made more accessible to all communities, particularly previously disadvantaged communities; that tenders be 'unbundled' into smaller tenders to allow more smaller enterprises to tender for work; a point system to award tenders on the basis of the combination of price and preference for targeted groups, with specific focus on local enterprises, race and gender considerations.

While there is some progress in ensuring that all of the above is realized such that more and more people can grow towards being significant participants in the economy, much still needs to be done. It is also clear that in pursuing these objectives, we cannot ignore the importance of partnerships. And so when we delivered our State of the City address on March 14 2007, we also announced the relationship with the Voka East-Flanders' Chamber of Commerce in recognition of the role partnerships play in assisting us to realize our objectives.

We understand the aim of the Plato Project to be the transfer of Plato-know-how from Voka-Chamber of Commerce of East-Flanders (Voka KvkOV) to its South-African partners, and its Mogale partner in particular. The project owners believe that the creation of a sustainable Plato-network is an answer to the needs of Small, Micro and Medium-sized Enterprises (SMMEs) in our city in particular. We note also that the Plato project seeks to align itself with our country's economic policy, and we acknowledge that with appreciation. The network of professional coaching to SMME-owners by managers from major Mogale City companies is an innovative approach. It creates a multi-sectoral, economical and international network and addresses key aspects and challenges faced by SMME owners.

We encourage our SMME owners to take advantage of this opportunity. It is part of our efforts to create an environment in which they can prosper as entrepreneurs. The knowledge and skills they acquire must be used not only to change their businesses for the better but to also assist other smaller and struggling SMME owners to also succeed. Our city is experiencing fast growth, and with it comes business opportunities. While as the local authority we do our bit in ensuring that this growth gives preferential treatment to local enterprises, these opportunities will not just land on someone's plate from heaven. As entrepreneurs you must go out there and seek these opportunities. You have to know that information and knowledge are power because unless you know your destination, there is no way you will be able to chart a course to reach there.

In his book titled Capitalist Nigger - The Road To Success, a national bestseller, Chika Onyeani writes: "The battle for the accumulation of money and wealth is a battle that needs the greatest amount of preparation and the possession of enough knowledge to ensure victory. The question is do we as a people have the capacity to possess the knowledge or information necessary to play in the big leagues? Right now, it would appear that the present generation prefers to dwell on the accomplishments of their forebears…. We dwell on our forebears who invented this or that, which invariably were denied to them before exploiting its marketability. A Capitalist Nigger does not dwell on the accomplishments of others. He does not dwell on self-pity. He has no time for blaming the system of having denied him this or that. The greatest thing about this age we live in is that whatever information you need, it is available to you." I am not saying we must now go around calling each other niggers, but I am saying that the passionate sense of outrage and collective self-reproach contained in this message is powerful. The beginning of self-reform is self-criticism.

So use this Plato project to empower yourself with knowledge and information. Seek other information platforms, attend seminars, read as much as you can, network as if there is no tomorrow, and ultimately, know what you want and what leaps you have to take to get there. This is the reason we brought this initiative to you.

Twentieth century German humanitarian, organist and doctor, Albert Schweitzer once said: "At times our own light goes out and is rekindled by a spark from another person. Each of us has cause to think with deep gratitude of those who have lighted the flame within us."

To Plascon and the South African Revenue Service - thank you for participating in this project. It is corporate citizens like yourselves that are needed in this city so that together we confront all the socio-economic ills that our people are faced with.

To our Belgian partners - the Voka East-Flanders' Chamber of Commerce - we thank you and salute you. The people of our city receive your partnership with a deep sense of gratitude. Please go back home and tell them that you now have a second home. Science tells us that this is where humanity began. So tell them that you have a home in the City of Human Origin.

Let me also take this opportunity to once more thank our sister municipality of Bitou, in Plettenberg. Your friendship as a city is very progressive. Thank you for linking us with Voka Chamber of Commerce. We understand that the next stop from here is the launch of the Bitou chapter of the Plato project. We wish you well.

Ladies and Gentlemen, let the work begin.

I thank you.