The Diplomatic Society

 
  • Increase font size
  • Default font size
  • Decrease font size

Ministry of SME’s needed in South Africa

By MPHAHLELE KUNENE

“It’s about time that our country [South African] creates a ministry of Small Medium Enterprises (SME). This will be important in addressing the concerns and challenges of this sector which has been largely ignored.”  These were the words of  Sello Motsei, Founding Member of Kgwebong Communications Company  after returning from Indonesia.
Motsei had been invited by the Municipality of Tasikmalaya and the Chamber of Commerce in Indonesia to film a documentary for 10 days about the SME’s role in that country.

IMG_0232
IMG_0303
IMG_0326
IMG_0421
IMG_0452
IMG_0862
1/6 
start stop bwd fwd

Motsei said the SME’s in Indonesia were vital in creating jobs, contributing to the country’s economy and alleviating the levels of poverty. He further said this was due to the policy and framework adopted by the Indonesian government in 2008- after the country realised that big companies were closing down due to the global economic meltdown.
“In our country SME’s are not taken seriously unlike in Indonesia. If our government can look at the model of Indonesia we can learn a lot from it and in the near future we can see tangible results just like what they did five years ago,” said Motsei.
The Indonesian government in 2008 created two types of financial institutions in Indonesia, namely banks and non-banks. Banks were categorized as commercial banks and rural banks.  The commercial banks had access to the payment system and offered a full range of banking products. Rural banks are comprised of relatively small sized banks compared to the commercial banks. They do not have access to the payment systems and do not have to open an account at the Central Bank. Rural banks, in addition, must not deal with foreign exchange transactions and must not deal with foreigners neither in Rupiah nor in other foreign currencies,” explained Motsei.
This strategy was seen by many citizens in Indonesia as a model that can assist the government in growing the Gross Domestic Products (GDP).  In the  short term this policy increased the productivity and export value of cooperatives and SMEs’.
Among the policies adopted include;  expand the businesses of cooperatives and SMEs to agribusinesses; raise the number of new enterprises based on science and technology; and increase the capacity of micro enterprises particularly for the under privileged group in rural and underdeveloped regions.
Motsei emphasised that based on his observation and interactions with small business in South Africa some of the challenges faced by the SME sector were: limited access to financial resources; lack of technological skills and management; limited human resource capability and a friendly environment of operating in.
While in Indonesia, Motsei proposed a library be built in Tasikmalaya which will also support the community in studying about trends of running a business. This included a letter of intent which further states that there should be a cooperation in development of the community. Among the signatories were Wahyu Tri Rachmadi of Tasikmalaya City of Chamber of Commerce and Industry, Rector of Siliwangi University Professor  H. Kartawan and as a witness was  the First secretary of the Political Section at the South African Embassy in South Africa, Moses Phahlane.

 


 
Saturday, 23 May 2015
_________________________________________________

Feb-Mar 2015 Edition

 
_________________________________________________

Translater

Weekly Digital Newsletter


Chai Emporium
 

Singapore turns 50 The High Commission of Singapore in Pretoria hosted a reception to celebrate Singapore’s 50th year of nationhood. Mr Bernard Baker, High Commissioner of Singapore welcomed... <|> Thailand - Precious Gem of the East by K Bhana Discovering Thainess was the program organized by Deputy Head of Mission Surasak Suparat of Thailand to South Africa and Pahwinee Chansamran, First... <|> Help Survivors of The Earthquake in Nepal   By Srimal Fernando, Global Editor, The Diplomatic Society Eight million people have been affected by the massive earthquake in Nepal - more than a... <|> The Complexities of Migration Ethnicity, Nationalism, African Renaissance and Global Cosmopolitanism: Prisoner’s Dilemma in managing the complexities of international migration for South Africa ... <|> Freedom Day celebrated in Tokyo, Japan From left to right: 1st prize winner Karin Hiramatsu, Ambassador Mohau Pheko, 3rd prize winner Kyoko Ishiguro, Ms Nosicelo Mbele, Minister Plenipotentiary,... <|> PDA Gala Dinner {besps}stories/PDAGD|width=350|height=300|align=3{/besps} The Pretoria Diplomatic Association (PDA) hosted its annual dinner in fine style in Pretoria ‘Your Red Carpet PDA Gala... <|> The Spirit Lives On - ANZAC {besps}stories/ANZACD|width=350|height=300|align=3{/besps} 100 years of ANZAC was commemorated at Freedom Park in Tshwane, South Africa to pay respect to and to... <|> UAE launches “International Corner” at Morula Library Pictured at the handover of the new books are (from left front) Ms. Thuli Nduli, from Morula Casino and Hotel, Mr. Andries Magagula an... <|> Promoting Fisheries and Aquaculture, and Maritime Safety and Security Cooperation in Indian Ocean Region Opening address by South African International Relations and Cooperation Deputy Minister... <|> Former US President Clinton visits Clinton Foundation Projects in Kenya    (R ) Former US President Clinton and Chelsea Clinton attend an event with over 5,000 secondary school scholars... <|>
copyright 2013 the kianja project cc
best viewed in IE 10 or Mozilla Firefox V23.0.1