Transnet has a significant role to play in facilitating the expansion and competitiveness of the South African economy by creating policies that support Enterprise and Supplier Development ("ESD") with the goal of enhancing economic access for those who previously lacked it.
However, the historic lack of investment in infrastructure has had a significantly negative impact on local industry, resulting in the loss of scale and a decrease in manufacturing industry capabilities.
To bridge the gap Transnet has entered strategic partnership with National Association of Automotive Component and Allied Manufactures (NAACAM) and the National Empowerment Fund). This ESD initiative is aimed at developing local manufacturing capacity and capability in the core business of Transnet.
This initiative will not only assist in developing a pipeline of suppliers but will also help Transnet accomplish its social, transformation and developmental objectives, whilst supporting South Africa's national B-BBEE priorities. Furthermore, it will contribute towards alleviating our country's triple challenge of inequality, unemployment and poverty.
Transnet's partnership with NAACAM through Enterprise and Supplier Development - aims to develop local manufacturing capacity and capability in the core business of Transnet. This is aimed at increasing local content and reducing the current over reliance on imports.
In order to provide the necessary financial support to the participating enterprises, Transnet has also partnered with NEF through a 50-50 matching principle which will allow the beneficiaries to have access to an additional source of funding, while empowering them in line with Transnet's core operations.
Enterprise Development (ED) and Supplier Development (SD) are important elements that enables Preferential Procurement. The aim is to increase local content and reduce reliance on imports.
Within the borders of South Africa particularly in areas where Transnet has a footprint.
Localize services and products which were previously sourced from abroad by increasing the capability and capacity of the South African Economy.
Suppliers in the rail, ports and automotive manufacturing industry who are 51% - 100% Black Owned and either a QSE/ EME for SD or a vendor that is an EME/QSE that is Black owned for ED.
The growth of small, black-owned suppliers is guided by an ESD Policy, and localization strategy created by the ESD department. The localization approach will be implemented with assistance from NAACAM.
Transnet's ESD Service offerings
- Unlocking the value of local SMMEs and their commercial viability.
- Capability building of SMMEs through technical and business training and supporting aligned with procurement needs.
- Collaborate with strategic partners and industry associations that can provide additional resources and support for ESD initiatives.
- Facilitate access to funding and post funding support thus contributing towards boosting financial viability of the SMMEs.
- Provide supplier development support to enable access to supply chain opportunities.
NAACAM's Key deliverables
- To analyse Transnet procurement categories to determine commodities suitable for localisation.
- To identify availability of local suppliers as well as their relative levels of capability and capacity.
- Conduct market analysis to determine the best tactics and approach to localisation.
- To develop local manufacturing commodities for Transnet as well as other industries and ensure accreditation by the relevant OEM, where applicable.
- To negotiate long term partnerships with international OEMs to support local suppliers.
NEF's Key deliverables
- To provide financial and non-financial support to Transnet suppliers
- Provision of resources such as required equipment to the localisation beneficiaries.
- Address market failure associated with access to finance, through co-funding in terms of this Agreement.
Partnership with NAACAM and NEF
Benefits of the partnership
- Investment Machinery & Equipment.
- Job creation.
- Increased local production.
- Financial and nonfinancial support.
- SMME Funding Opportunities.
- Skills transfer.
- Technology transfer.
- Export opportunities.
Enterprise Development hubs
The typical services that SMMEs can expect at the Transnet Enterprise Development Hub include:
- Procurement Advisory services.
- Central Supplier Database Registration and Queries (CSD) Services.
- CIPC registrations.
- Training (contact branch for more information).