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Changing the unemployment rate of this country

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When Public-Private Partnerships Work!

Published on July 4, 2018

Property Point and The Department of Small Businesses have joined forces to support 16 entrepreneurs in the property sector.

In a landmark partnership for collective economic growth in South Africa, the Department of Small Business Development (DSBD) has joined forces with Property Point, a Growthpoint Properties initiative, to develop more small businesses for South Africa’s property sector.

DSBD has allocated a R5 million grant to Property Point for a one-year small business development programme as part of its Enterprise Incubation Programme (EIP). This breakthrough initiative is the first public-private partnership of its kind in the property sector.

It will develop 16 small businesses in the property sector of which two- thirds are youth- and woman-owned.

Shawn Theunissen, head of Property Point and head of Corporate Social Responsibility for Growthpoint Properties, says: “Property Point’s objective has always been to contribute to South Africa’s economic growth. Using a best practice model, we have delivered positive results in the property sector for the last decade.

Now, our new partnership with government will escalate our impact on transforming the economy at a crucial time when South Africa is dealing with high unemployment and low economic growth.”

After their participation in the programme, the beneficiaries have created 59 direct and 47 indirect jobs and have accessed R21,9 million in contracts.

Upon meeting the 16 business owners at a networking function in March 2018, Edith Vries, the Director General of the DSBD highlighted that this partnership will help to cultivate more small businesses, breathing life into the economy and giving young people the opportunity to grow their own enterprises. She praised the market-focused initiative for adding to the steady, but significant positive momentum South Africa is achieving in making its small business sector a key player in the economy.

Property Point has been a driver of transformation and small business growth within the South African property industry in the 10 years since it was founded by Growthpoint in 2008.

Already, it has created 2066 jobs and R842 million in procurement opportunities for the 130 SMEs that have participated in its two-year development programmes. These small businesses have reported 43% growth in revenue.

The partnership with government leverages Property Point’s deep- rooted success in growing competitive small businesses in the property sector over the last 10 years and expands it for bigger impacts on small enterprise development, job creation, economic growth and a more inclusive economy for South Africa.

For this unique 16-business intake, Property Point’s programme is powerfully market driven. It will raise the profile of the entrepreneurs and strengthen their competitiveness, with a deep focus on market integration.

The programme aims to create market linkages for these small businesses that will see them included in procurement opportunities in the broader property sector, as well as Growthpoint. It is expected to set new benchmarks for small business integration into private sector supply chains.

Estienne de Klerk, CEO of Growthpoint South Africa, says: “We believe in the principles of social and economic transformation and empowerment on all levels, and we are committed to achieving this. As a hands-on property owner, we own and manage our buildings – we recognise our unique position to develop small businesses to increase their access to market opportunities. We are proud to contribute to this pioneering public-private partnership designed to deliver on South Africa’s transformation, small business, economic growth and job creation objectives.”

The programme beneficiaries are: Richard Chauke, Value Waste Recycling; Thabiso Makgoka, Mokibelo Investments; Flavia Tau, Tumagole Trading Enterprises; Malusi Ndebele, VM Refrigeration; Mandla Ndlovu, G and Sons Construction; Thabang Tauatswala, Ecco Environmental Waste Recycling; Sibusiso Ngwane, E-Security; Luanda Wagener, JJSL Vukuzakhe Construction; Tshepo Lekoloane, Leruo Baueng Trading Enterprise; Moyana Ntimane, Rumocco Eco Cleaning; Senzeni Masitenyane and Zoleka Ngema, Senzee Trading; Sibulele Kweyama, Sophistique; Remi Tshikororo, Tshiko Electrical; Teko Motlhabi, Techmo Prop; Sibongile Shikwambana, Sandwind Coatings.

For more information on the Property Point ESD Programme or to contact us please email info@propertypoint.org.za or call 011-833-0340

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