Empowering SMMEs through Costing and Pricing Training in Pixley Ka Seme District

On 11 September 2024, the Department of Economic Development and Tourism, in collaboration with various stakeholders, conducted a Costing and Pricing Training in Colesberg to capacitate SMMEs in the Pixley Ka Seme District Municipality. The training was designed to equip small and medium-sized enterprises (SMMEs) with essential skills in accurate pricing, costing methods, compliance, and successful bidding for government tenders.

The training focused on promoting compliance with procurement regulations, improving SMMEs' access to opportunities, and enhancing their competitiveness within the Northern Cape. It also aimed to assist sector departments and public entities in meeting their Broad-Based Black Economic Empowerment (B-BBEE) compliance requirements. Key objectives included increasing the uptake of procurement opportunities by local SMMEs and facilitating the effective implementation of the Northern Cape Preferential Procurement Framework.

The Northern Cape Provincial Government faces significant capital flight, with approximately 65% of procurement transactions benefiting suppliers outside the province. This capital flight deprives local suppliers and SMMEs of vital opportunities to support economic growth and job creation within the region. The training addressed challenges such as inadequate costing and pricing strategies, which hinder SMMEs' ability to access government procurement prospects.

To provide comprehensive support, the B-BBEE portfolio of the Economic Empowerment Sub-Programme partnered with the Northern Cape Provincial Treasury, the Small Enterprise Development Agency (SEDA), Umsobomvu Local Municipality, the South African Revenue Service (SARS), and the Department of Cooperative Governance, Human Settlements and Traditional Affairs (COGHSTA). This collaborative effort aimed to create an enabling environment for SMMEs, ensuring they are well-positioned to take advantage of government procurement expenditures, as outlined in the B-BBEE Act.

The effective implementation of the Northern Cape Preferential Procurement Framework remains contingent upon the National Treasury's resolution of concerns following the February 2022 high court ruling that set aside the Preferential Procurement Regulations of 2017. Ongoing monitoring and evaluation of compliance with this framework will be crucial in both the public and private sectors within the province.

The Costing and Pricing Training in Colesberg highlights the Northern Cape’s commitment to empowering local SMMEs, enhancing their ability to grow and compete, and ultimately contributing to sustainable economic development and job creation.