Standard Bank
6 September 2007
North West Public Works and Standard Bank today (Thursday) signed a
Memorandum of Understanding (MoU) geared towards supporting, developing and
empowering emerging contractors and suppliers.
The move, described as 'a milestone' in empowering the Small, Micro and
Medium 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 contractors' contracts as security before lending. Currently
banks require collateral 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 centrepiece 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
Source: North West Provincial Government (http://www.nwpg.gov.za)
