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First SAMBRA ESD conference provides positive outcomes

ESD Dineshan Moodley AIDC Dionne Kerr Siyakha Richard Green SAMBRA Tsholofelo Moemi SEFA Ithumeleng Mojafi Sumitomo Rubber SA

The 2019 South African Motor Body Repairers’ Association (SAMBRA) Conference, which took place at Emperors Palace in October, was a great success kicking off with a highly-targeted Enterprise and Supplier Development focus, hosted by Richard Green, National Director of (SAMBRA), an association of the Retail Motor Industry Organisation (RMI), and Dionne Kerr of Siyakha Implementation Partners.

Over 120 delegates, representing funders from corporate and government spheres as well as small and micro enterprises, attended the conference which had a clear focus on growth and development in the sector as well as support to Exempted Micro Enterprises (EMEs) and Qualifying Small Enterprises (QSEs) supplying the sector. The conference included showcasing innovation within the sector to stimulate strong collaborative thinking and engagement.

Key messages from the conference included:

Richard Green: “Let’s put an end to the substantial inefficiency in use of funds within the industry’s ESD spend, currently happening due to inadequate collaboration within the industry. We need to develop efficient, collaborative mechanisms among all key role players in the motor body repairers’ industry, including ESD funders, so as to ensure not a single cent is wasted of the available funding.”

Dionne Kerr: “Government has many schemes and adequate funding for ESD, but the private sector is not matching its level of commitment.”

Funding is readily available in South Africa. The Youth Employment Service (YES) will provide employees free to SMMEs.

Ithumeleng Mojafi, Associate Manager: Business Development Sumitomo Rubber South Africa: “Dunlop has initiated a unique ESD programme which has more than 120 branded tyre containers in South Africa Entrepreneurs are enabled to sell tyres from these containers. These aspiring business people are trained and mentored on tyre sales and repair.”

Dineshan Moodley, Executive: Industry Development (AIDC):  “An exciting AIDC’s township ‘hub’ programme to enable money in townships to circulate in townships by equipping motor repair businesses to meet SAMBRA standards of quality. The model piloted on one site, was to create a hub out of converted municipal offices in collaboration with SAMBRA so as to have the correct equipment such as world-class spray-painting booths and chassis straightening equipment exactly to spec for a SAMBRA-accredited business.”

Tsholofelo Moemi, Regional Manager: Gauteng, SEFA (Small Enterprise Finance Agency): “Many small business financing products are available to small committed enterprises with the right skills.”

Renai Moothilal, Executive Director: National Association of Automotive Component and Allied Manufacturers: “Many opportunities will emerge for SMEs as OEMs are required to increase their local content percentage. It is positive for ESD because those OEMs which currently have relatively low local content percentages, will be looking to form partnerships with Tier 2 supplier companies or buy more from local Tier 1 companies. At some point, gaps will be tapped as far as they can be tapped and then the pressure will mount on Tier 1 companies to find what is termed ‘deep local content’, where the Tier 2 and 3 opportunity comes in. There has been recent talk of the establishment by the OEMs of a transformation fund in lieu of their own lack of B-BBEE status to fund black supplier development, also in the retail and after-sale market. One would expect some preferential funding characteristics to come out of this fund.”

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