Capital Equipment News December 2018

THOUGHT LEADERSHIP – TRANSPORT

Growing transport SME s

to build

SA’s economy

The transport sector presents a myriad of new business opportunities, and with the right support, SMEs in this sector can flourish. By Cecil Ramonotsi , Eskom Development Foundation CEO.

T ransport underpins virtually every economic sector, so having a sustainable transport sector is a good place to start in building a thriving economy. In South Africa, we only have to consider the impact of fuel price on every sector to understand how closely transport is tied to our socio-economic development. The organic growth of the mini-bus taxi sector, the meteoric rise of the app-based taxi era and the rapid growth of logistics networks to support the burgeoning online shopping sector are all examples of how transport helps change the shape of business and daily life, and how the sector creates tens of thousands of jobs. The transport industry, in any country, is the lifeblood of its economy. More work to be done In South Africa, while we have made great strides and significant improvements in the sector, a lot of work still needs to be done. Capitalising on the potential of the transport sector demands, large enterprises have an important role to play in empowering the smaller players to gain traction, grow and contribute to economic growth. Eskom, through its corporate social investment establishment, the Eskom Development Foundation, has played a major role in helping transport SMEs grow sustainably over the past decade. The foundation has created initiatives that help small black-owned enterprises to become sustainable, grow and attain more success. This is all done in an effort to help them create jobs in their respective communities and local economies, thus helping the country in its

fight against underdevelopment, poverty and unemployment.

SME success One of the initiatives is the Eskom

Business Investment Competition (BIC), which rewards black-owned SMEs that are contributing to growing their local economies by giving them an opportunity to boost their operations and create even more jobs. The competition is open to SMEs operating in four key categories; manufacturing, engineering/construction, agriculture/agro-processing and trade/ services. Among others, the competition has benefited companies working in renewable fuel solutions, shuttle and transfers, as well as delivery services. One of the latest beneficiaries is Prodeliver Group, which was the overall winner of the 2018 edition of the competition. For this achievement, the company was rewarded with a cash prize of R300 000 to scale up its operations. Prodeliver Group provides logistics and mining services including transportation of commodities and palletised materials to both private and public sectors. The company was started in 2014 by mining engineer Nyadzeni Makhado, who used to work in gold mines before becoming an entrepreneur. Makhado and his two partners offer transport solutions to producers, receivers, manufacturers and suppliers in the mining sector. They have volume trucks, side tipper trucks and flat-deck trailer trucks to transport commodities including steel, timber, cables, pipes, cement, tools and equipment.

Cecil Ramonotsi, CEO of the Eskom Development Foundation.

With one depot and six employees on its books, the company projects its growth to include two additional depots and a significantly increased staff complement, along with a diversified service offering. Thanks to support and capital investment, the company is even considering harnessing alternative forms of transport, such as drones. Support matters This is just one example of how support and a capital injection can help local SMEs realise their potential, create jobs and contribute to economic growth. As the Eskom Development Foundation, improving life for South Africans, and seeing the growth of small businesses such as Prodeliver is a remarkable reward in itself. While we appreciate that our transport sector has not yet delivered on its full potential, we remain encouraged that it is only a matter of when, not if, it will get there. The Eskom Development Foundation is tasked with implementing Eskom’s CSI strategy in sectors including enterprise development, education, healthcare, social and community development. b we are always inspired to make a meaningful contribution towards

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