By Nangamso Mabindla

A R20-million scheme aimed at giving new entrepreneurs in the contracting industry easier access to finance was launched in East London last night.

The scheme, set up by the Department of Roads and Public Works and the Industrial Development Corporation (IDC), will be used to offer financial support and business expertise to emerging contractors in the Eastern Cape.

Enoch Godongwana, the province's MEC for Finance who was the guest speaker at the launch, said Public Works had done well in their efforts to encourage growth in the contracting industry.

"I would like to commend Public Works for what they are doing for the province. But I would also like to see much needed expertise being introduced to further develop skills in this industry," Godongwana said.

Godongwana said the government had spent billions in its efforts to boost the industry, especially to help previously disadvantaged individuals grow and become successful business people.

"This year alone, various government departments have spent over R2-billion to assist entrepreneurs and we are looking to spend more than R5-billion in the next four years," said Godongwana.

Gerrit van Wyk, IDC vice president for sector services, said the corporation had committed itself to be one of the leaders in assisting emerging contractors grow into bigger businesses.

He said there were challenges that needed to be tackled if this objective was to be realised.

"I believe we have got enough skills in the province but the biggest challenge is access to finance. It is difficult for emerging businesses to receive finance. To overcome this we need to promote public and private sector partnership," he said.

The IDC would also assist in transferring skills through mentorship programs which, in turn, would be instrumental in the managing of finances, Van Wyk said.

Roads and Public Works MEC Gloria Barry said the industry faced other challenges besides finance but that these could be tackled.

"I think the greatest challenge facing us is saturation in the contracting industry, because there are many people doing the same thing. That, in turn, leads to unnecessary competition among our people. We would like to encourage entrepreneurs in this industry to be more diverse in their business choices," Barry said.

The MEC said the financial scheme would be instrumental in curbing most of the challenges facing the emerging contractors in the industry.

Van Wyk and Corrie Smit, acting head of the Department of Roads and Public Works, closed the night by signing the agreement between the two parties.

Emerging contractors who would like to find out how the scheme works can contact the Department's Programme Manager Pearl Kadiaka on (040) 609-4691 or Luzuko Ngaxemba on (040) 609-4687.

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