WeeklySA_AdminGROWTH: Newly launched initiative part of a bold move by the provincial government to ensure township-based automotive businesses are integrated into the state fleet maintenance supply chain…
By Own Correspondent
The newly launched Merchant Development Programme is set to unlock opportunities for township-based automotive businesses in Krugersdorp.
The programme was launched by Gauteng MEC for Roads and Transport, Kedibone Diale-Tlabela yesterday.
Diale-Tlabela said the initiative is a bold move by the Gauteng Provincial Government to promote inclusive economic growth. The programme is aimed at boosting township-based automotive businesses by integrating them into the government’s fleet maintenance supply chain.
“This is not just another project. It is a bold and deliberate step toward realising the Gauteng Provincial Government’s commitment to inclusive economic growth, as proclaimed by Premier Panyaza Lesufi that 60% of the provincial budget must be spent within townships. This initiative will guarantee that we successfully transition from intention to execution,” she said.
The initiative provides skills development, training, onboarding, accreditation and assistance for future integration into the government’s fleet maintenance supply chain.
The programme is championed by g-FleeT Management, the trading Entity of the Gauteng Department of Roads and Transport, in partnership with the Automotive Industry Development Centre (AIDC) and WesBank, to address barriers to entry.
Township spending by the Fleet Maintenance Unit of g-FleeT Management increased from 7% to 10% as of October 2024, with a clear goal to reach 30% by the end of 2025.
“Each rand invested in township merchants contributes directly to job creation and community development. This programme is about more than numbers. It is about impact, dignity and participation.
“In partnership with the private sector, we will continue to build an economy that values ambition and rewards ability, regardless of one’s location,” the MEC explained.
Meanwhile, AIDC Chief Executive Officer, Andile Africa, stated that they are proud to play a key role in this initiative by hosting, supporting and developing the merchants at Chamdor Automotive Hub.
He said AIDC provides the infrastructure, compliance support, training, and broader ecosystem benefiting merchants from being in a secure, Retail Motor Industry Organisation (RMI)-approved facility.
“[The] Merchant Development Programme is more than just repairing vehicles. It’s about repairing the structural inequalities of the past, building sustainable businesses, and creating real opportunities for people in our communities,” he said.
WesBank’s national contract manager for fleet services, Marcellus Mbanda, spoke to the RT46 contract, business model, and beneficiation approach to the townships, informal settlements and hostels (TISH) areas.
WesBank plays a key managing role in the RT46 contract, which is a transversal government contract designed to streamline the acquisition, financing, and disposal of vehicles for national and provincial departments.
The RT46 contract is a transversal term contract managed by the National Treasury for providing fleet management services.
“Currently, the bank is working with about 243 merchants sitting outside the hub, benefiting through RT46,” said Mbanda.
Mbanda further confirmed that since 2021, the amount spent towards repairs by township merchants has risen to R37 million in terms of allocation of work. – SAnews.gov.za
