CO-OPS TO GET HELP

Small companies
to get City cash

By Tabisa Mntengwana
05 May 2009

SOME 30 co-operatives and small, medium and micro enterprises (SMME) are set to gain from the R1,5-million Co-operative Development Fund.

The fund is the result of the Co-operative Campaign, run throughout Buffalo City in March.

Organised by the department of local economic development, tourism and rural development, the campaign was aimed at providing a platform for upcoming and established co-operatives. It also enabled the department to visit various areas to promote its services.

Co-operatives participating in the campaign came from various industries, including cleaning services, catering, grass cutting and agricultural services. Some could work as municipal suppliers or service providers through these initiatives.

The municipality has invited co-operatives to submit their applications through the department. To qualify, they should have been up and running for at least one year, be registered, have a letter of endorsement from a ward councillor, and three months’ bank statements.

The fund is aimed at supporting primary co-operatives through buying equipment, assets and material. “The City is set to provide financial support to primary co-operatives based in Buffalo City,” said Mzwanele Dlova, the municipality’s business development manager.

Those co-operatives chosen to benefit will be announced before the end of the month.

Dlova said the fund was a pilot project. Depending on its success, the City would replicate it in the next financial year. “The funding is also aimed at bridging the gap between the first and second economy.”

During the selection process, municipality officials would visit the applicants; the chosen co-operatives would be monitored after the selections had been made “to ensure that they are sustainable”.

Dlova said these SMMEs and co-operatives contributed significantly to the local economy through their job creation aspects. The City will officially hand over the funds before the end of the 2008/2009 financial year.