South Africa - Enterprise Development Pilot Project

The Enterprise Development Pilot Project aims to stimulate entrepreneurship by supporting SMMEs, municipalities and the Industrial Parks Program. The intervention will, in particular, enable the conducting of a detailed pre-investment study that will lead to bankable investment projects under the Industrial Parks Revival Programme. It covers a MIC Grant of UA 1.2 million to the Government of the Republic of South Africa to support Enterprise Development through Local Economic Development Strategies, pilot Specialized Industrial Platforms and a Detailed PreInvestment Study for Industrial Parks. In its implementation, the project will promote an integrated approach to SMME development by supporting demand-side and supply-side interventions in the sector. The feasibility study for the revitalization of the Industrial parks and integration of Local Economic Development (LED) in Municipal Development Plans will enable the generation of economic activities that will increase the demand for goods and services from SMMEs in the second economy. On the other hand, improving access to technology and skills to these SMMEs in the second economy will improve their ability to efficiently supply the goods and services demanded in their municipalities. The synergies from these interventions will improve job creation, lead to reduced poverty amongst the youth in particular and foster inclusive growth in the economy as a whole, through increased participation from the second economy. Furthermore, training for district municipalities shall include aspects of managing industrial relations, which are currently having a negative impact on the competitiveness of the South African economy.