Transnet yesterday announced the launch of the NEF-Transnet SMME Fund to support areas core to its business, as well as boost localisation and South Africa’s manufacturing capabilities.
This as it partnered with the National Association of Automotive Component and Allied Manufacturers (Naacam) and the National Empowerment Fund (NEF).
“The five-year partnership in which Transnet, NEF and Naacam will together implement a programme of about R224 million is expected to contribute to the resurgence of local manufacturing and lowering logistics costs,” it said.
In order to provide the necessary financial support to the participating enterprises, Transnet said it had partnered with NEF through a 50-50 matching principle, which would allow the beneficiaries to have access to an additional source of funding, while empowering them in line with Transnet’s core operations.
NEF CEO Philisiwe Mthethwa said the NEF-Transnet SMME Fund would operate under the administration of the NEF and would “focus on the transformation of Transnet’s value chain while positively impacting communities where Transnet operations are located”.
Transnet’s partnership with Naacam through enterprise and supplier-development aimed to develop local manufacturing capacity and capability in the core business of Transnet.
Naacam executive director Renai Moothilal said, “Naacam has experience in implementing programmes aimed at using localisation and supplier development as a tool for increasing domestic competitiveness especially in original equipment manufacturer-driven value chains. There are learnings out of the automotive sector that can benefit the Transnet logistics sector.”
BUSINESS REPORT