Question NW1693 to the Minister of Employment and Labour

Reply:

There was no spending/Allocation on (ii) cooperatives, (iii) township enterprises and (iv) rural enterprises during FY 2021/22, 2022/23 and 2023/24 (April 2023)

Below is a summary of spending on SMME’s:

	2021/23	2022/23	2023//24 Current
(i) small-, medium- and micro-enterprises	32%	2.3%	0%

In a drive to transformation, the department has amended and implemented in its policy and processes, the allocation of points through specific goals based on the new regulation (PPR 2022).

Goal	Points	Motivation
Women	5	In recent years, the President announced that Government allocated budget ought to be channel to women owned businesses. Allocating 5 points to all the Departmental procurement will address this requirement.
SMMEs	6	Promotion of businesses with an annual turnover of less than R10M
HDI	4	Promotion of companies that are owned by historically disadvantaged individuals
Disability	3	Granting opportunities to persons living with disability
Locality	2	The locals ought to be given the first preference on procurement of goods and services happening in their area.

The table below depicts the allocation of specific goals where SMME`s have been allocated the highest points:

2. CCMA

The Commission for Conciliation, Mediation & Arbitration spent thirty-five (35) percent of the total supplier expenditure to SMMEs. There was no expenditure relating to cooperatives, township enterprises and rural enterprises. The organisation did not implement the set-aside policy, however implemented preferential procurement policy provisions.

3. NEDLAC

2021/22:

i: 97%

ii: 0%

iii: 0%

Note: The remainder was awarded to entities larger than SMME.

2022/23:

i: 99%

ii: 0%

iii: 0%

Note: The remainder was awarded to entities larger than SMME.

2023/24 thus far:

i: 84%

ii: 0%

iii: 0%

Note: The remainder was awarded to entities larger than SMME.

4. SEE

Comprehensive breakdown of the procurement allocation for SEE entity in terms of the percentages allocated (2022/23 financial year):

1. 62.06% business was awarded to small -enterprises
2. 9.93% business was awarded to medium -enterprises
3. 8.86% business was awarded to micro -enterprises
4. 17.73% business was awarded to Cooperatives
5. 1.42% business was awarded Township and Rural enterprises

Of the above categorises 1.42% business was awarded to people with disabilities.

Since 1 April 2023 till 19 May 2023:

1. 83.33% business was awarded to small, medium and micro -enterprises
2. 16.67% business was awarded to Cooperatives
3. 0% business was awarded Township and Rural enterprises

Of the above categorises 2.78% business was awarded to people with disabilities.

Of the above categorises 58.33% business was awarded to Women.

Of the above categorises 13.89% business was awarded to youth.

5. PRODUCTIVITY SA

There were no spending on (ii) cooperatives, (iii) township enterprises and (iv) rural enterprises during 2021/22, 2022/23 and 2023/24 (April 2023)

Below is a summary of spending on SMME’s and other service provides: Detailed list is on excel.

	2021/23	2022/23	2023//24 Current
(i) small-, medium- and micro-enterprises	3%	9%	6%
Other	97%	91%	94%

6. UIF

i. Small-, Medium- and Micro-enterprises

(aa) (2021/ 22 Financial year)

• Procurement allocation to Small-, Medium- and Micro-enterprises is 100%.
• Unable to separate allocation percentage between Rural and Township due to system limitations.

(bb) 1 April 2023 until 31 April 2023

• The procurement allocation is 100%. However, we are unable to separate allocation between rural and township due to system limitations.

ii. Cooperatives

(aa) 2021/ 22 Financial year- procurement allocation is 0%.

(bb) 1 April 2023 until 31 April 2023- Procurement allocation is 0%.

iii. Township and Rural enterprises

(aa) (2021/ 22 Financial year)

• Unable to separate procurement allocation due to system limitations.

(bb) 1 April 2023 until 31 April 2023

• Unable to separate procurement allocation due to system limitations.

7. Compensation Fund

For the 2021/22 financial year, R767 million was allocated for the procurement of goods and services including capital assets. Whilst in April 2023 financial year a total of R13 million from the Fund’s operational budget was allocated for the procurement of goods and services including capital assets.

The Fund’s Procurement is done in terms of the Preferential Procurement Policy Framework Act. In terms of this Act for procurement less than R50 million, bids are scored at a maximum of 20 points for Historically Disadvantaged Individuals while for procurement more than R50 million at the maximum score is 10 points.

For Procurement less than R50 million the maximum 20 points are allocated as follows:                                                                                                                                    Woman                                                      8 points

Youth                                                         6 points

People living with disability                        1 points

Locality                                                   5 points

For procurement above R50 million the maximum 10 points is allocated as follows:

Woman                                                      4 points

Youth                                                         3 points

People living with disability                        1 points

Locality                                                   2 points