Current Edition >> Archives Section >> SMME Information >> Dec 2000 / Jan 2001

Interview with Deputy-Minister of Trade & Industry, Ms. Lindiwe Hendricks

On 7 November 2000 at the annual Award Ceremony for Export Excellence from the Free State Province, the Deputy-Minister of Trade & Industry, Ms. Lindiwe Hendricks, was the keynote speaker. The following are excerpts form an interview afterwards with her by the Editor of The Business Bulletin, Dr. Johann Dannhauser.

The SMME Division of your department has recently been restructured with a view to an even sharper focus on the SMME sector. What are the main points in this respect ?
It is true that our SMME division, which was until recently called the Center for Small Business, is being restructured and will now be called Enterprise Development. More effort and capacities are going to be dedicated into co-ordination of SMME initiatives in order to harness the resources and energies towards a more coherent SMME strategy with maximum impact. The central task for the Enterprise Development Unit will entail facilitation and mobilization of resources and formulation of programs, provision of advisory services and co-ordination of efforts across governmental, parastatal and private sectoral lines. The task of effective provision of resources and support directly to enterprises will, however, remain the core function of specialized support agencies like Khula and Ntsika.

The Khula Equity Fund is being applied in a new role - could you elaborate briefly ?
The Khula Private Equity Fund is a new scheme that Khula has launched only this year and targets poor rural communities, handicapped people and black rural women. This fund does not use collateral as the only thing that will be considered before one receives funds. This in my view sets this program apart form all other funding institutions and should go a long way in opening doors to business ownership to many people coming from poor and underprivileged communities.

And the role of the National Employment Fund - again concisely ?
The main objective of this fund is to facilitate the redressing of economic inequality which resulted from the past unfair discrimination against some parts of our population. One of the methods is to provide an opportunity for underprivileged people to acquire shares in state owned enterprises. The fund will therefore help in making medium and long term risk capital investment into start-up ventures and unlisted companies that offer a combination of commercially attractive returns with strong commitment to economic empowerment.

What is your message to the SMME sector ?
I would like to assure our SMME sector and those individuals who have interest in entering this sector that the Department of Trade and Industry considers it to be a very important vehicle for many of our people to enter into the economic mainstream. We have re-designed the SMME division and are introducing the Local Economic Development Unit, which, we know, will facilitate growth and development of SMME's at local level. We need to see more and more people owning their businesses and making profits for themselves. This is the only way I believe freedom and democracy will have meaning to our people. The development of SMME's is therefore key to our economic empowerment of the previously underprivileged and is the only thing that can put meaning into our people's lives. I have a personal interest in this particular sector and as such I will never rest until our poor rural mothers and the handicapped are able to provide for themselves. Therefore I and several women ministers form other African countries have begun a process of establishing an African women's bank. I know that this bank together with the insurance company that will be started alongside it, will also help in funding people who want to start their own businesses.