(MOU) with Standard Bank
6 September 2007
North West Public Works and Standard Bank today (Thursday) signed Memorandum
of Understanding (MOU) geared towards supporting, developing and empowering
emerging contractors and suppliers.
The move, described as 'a milestone' in empowering the Small Medium Micro
Enterprises (SMMEs) sector, by Public Works MEC Jerry Thibedi, is the first of
its kind for the department.
Both parties signed on the dotted line in Rustenburg.
The MOU is centred on Standard Bank's contract financing product (CFP) which
allows the bank to lend money to emerging contractors struggling with start-up
capital.
CFP was described as a coup for Standard Bank as no other financial
institution has packaged such a product.
The bank's provincial business support manager, Nick Coetzee, said CFP would
enable the bank to lend money to emerging contractors doing business with the
department of Public Works (North West).
The new arrangement would enable the bank to use the contractor's contracts
as security before lending. Currently banks require collaterals as guarantees
before they can lend money.
"What we hope to address in the end is to ensure sustainable business for
emerging contractors and the SMMEs as a whole," he said.
Thibedi described the SMME sector as 'the centre piece of the development
agenda' in North West.
"Our success as a province will radiate from how we develop SMMEs and the
emerging black business," he said.
Thibedi said the department was mindful of the fact that many emerging
contracts lacked financial and business management skills and the partnership
with the bank will address those ills with monitoring as well as mentoring
programmes.
He added that while the move would ensure great strides in SMME development,
allocation of finance would be preceded by capacity building to ensure
responsible spending by emerging contractors.
Standard Bank's provincial director, Mita Koebe said the signing of the MOU
with the department was also aimed a aligning the bank's business objectives
with that of the province.
Included in some of the objectives is, halving unemployment and poverty by
2014.
Issued by: Department of Public Works, North West Provincial
Government
6 September 2007
