MunMEC aims to foster collaboration

On a mission to foster collaboration between the provincial and local spheres of government, the MEC for economic development and tourism, Makhosazane Masilela, convened a virtual MunMEC on April 22.

The MunMEC is a structure, comprising provincial municipalities and Masilela, which ensures mutual consultation, policy co-ordination and aims to achieve a coherent government for effective provision of support to rural and township businesses.

In order for the seventh administration to realise its key priorities – to drive inclusive economic growth and reduce poverty, as a department and as municipalities – we need a deliberate a coherent approach as we deal with economic development matters in the province. Working together with our municipalities we should be able to drive meaningful economic growth that will, in turn, contribute towards creating much-needed jobs and the eradication of poverty,” said Masilela.

This structure has been established to ensure that interaction and engagement are strengthened between MMCs for local economic development and the department, in order to improve the functioning of local economic development and the manner in which support for small enterprises is co-ordinated.

The MunMEC deliberated on the township revitalisation programme. The department has already developed a red tape reduction strategy to provide support to municipalities aimed at simplifying doing business with small enterprises and the broader informal sector.

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The department has committed to strengthening partnerships with municipalities, to ensure that the regulatory environment in the townships and rural areas is conducive for businesses to thrive, without experiencing cumbersome red tape.

The feedback on this was that more emphasis should be placed on economic transformation through the continued support and nurturing of the informal sector.

Masilela urged municipalities to assist spaza shop owners, who are compliant with the relevant regulations, to apply for financial support from the R500m Spaza Shop Fund recently launched by the Department of Small Business Development.

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“Let us take advantage of the fund, meant to support spaza shops that are compliant with the regulations. We have a responsibility to assist them to register, because the fund is meant for the whole country and Mpumalanga must also benefit from it,” said Masilela.