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MAC roll-out in SA: Exciting success story of Major SMME development

One of the rare success stories from the public sector in SMME development in SA, is the roll-out of the government's MAC (manufacturing advice centres) Programme, especially as it has materialized during the past year. The high relevance of this is being borne out by the fact that manufacturing is one of the few sectors which expands the capacity of the economy, creates job opportunities and adds value to economic growth. The MAC Programme entails support centres on the ground in the various provinces in order to enhance the development and competitiveness of manufacturing SMME's (small, medium and micro enterprises).

PERMAC and DUMAC
After NAMAC was launched in 1997, its first practical result was the establishment of the Port Elizabeth Regional Manufacturing Advice Centre (PERMAC) in 1998. The latter was an instant success, having also opened up a satellite office at Queenstown. PERMAC was closely followed by DUMAC in Durban in the same year and which to date has subsequently branched out to Pietermaritzburg, Port Shepstone and Richards Bay.
The two regional pilots in Durban and Port Elizabeth have, by working with more than 995 existing small and medium manufacturing businesses, achieved incredible success: Most businesses have been put on a sustainable growth path and MAC interventions have been instrumental in sustaining in excess of 24 024 jobs and assisting in facilitating 724 new jobs. Thanks to the MAC Programme, the transformation of the economies of the two regions has received a considerable boost. The two pioneering centres have invested over R2 million with service providers in assisting their SMME clients.

Roll-out 2001
Having processed the teething problems unavoidable in a pioneering exercise such as this, especially on the technical advice side and in implementing an affective benchmarking system, the MAC programme got into stride this year by having produced since October GAUMAC with three operational centres on the East Rand, West Rand and in the Vaal area respectively; CAPEMAC in Cape Town; NORTMAC in Pietersburg; and MPUMAC in Witbank. Meanwhile WESTMAC in Mafikeng, with operational centres in Rustenburg and Klerksdorp, is scheduled to open early in 2002, with FSMAC in the Free State and NCMAC in the Northern Cape both at advanced stages of planning.

Manufacturing in SA
Making-up 23,9% of the GDP, the manufacturing sector contributes approximately R126 billion per annum to the economy and employs approximately 1,5 million people. It therefore has the ability to create not only the most jobs, but also the most enduring jobs. Following from this the value-adding process in manufacturing creates sustainable growth for the economy as a whole and lasting wealth for individuals. Once the national network of nine Section 21 comapnies, 12 centres and 17 satellite MAC centres are operational, the projected input to the economy is likely to be measured in billions of rand.

SMME manufacturing advice
It is consequently logical and imperative that the emerging manufacturing sector in SA be encouraged, guided and supported to the fullest extent possible. Not only is this crucial to the growing of the economy, but also to promoting exports from SA, especially in the wake of the continuing weakening of the rand. For the present the value of exports has already shot up to around 25% of GDP, i.e. around R20 billion per annum.
Since the entrepreneurial drive to manufacture does exist in SA, the question is how best to harness this potential. Manufacturing entrepreneurs have to be advised as regards critical matters such as most suitable equipment, product quality, business management, effective marketing, optimal utilization of resources, ISO standardisation, global competitiveness, etc. It is precisely this role that the MAC Programme is fulfilling and it is therefore most commendable that practical results are being put on the table.

Geared
Surveying the NAMAC structure and its scientific and professional operation at this stage, it is clear that the Programme is excellently geared to support and help develop manufacturing SMME's across the SA economic spectrum. The further roll-out of the MAC Programme is therefore indeed to be followed with anticipation.
On pages 8 and 9 of this edition of The Business Bulletin more detail is given on how and where persons interested in the MAC Programme can get involved.