Transnet: infrastructure development hand-in-hand with supplier development

MmadibokaChokoe.jpgThe DTI’s B-BBEE Codes of Good Practice (2007) define Enterprise Development as monetary and non-monetary contributions to beneficiaries, with the objective of contributing to the development, sustainability and financial and operational independence of those beneficiaries. The aim is to address certain key challenges facing qualifying small enterprises and exempted micro enterprises and, more specifically, black-owned businesses that struggle to survive.

Speaking to SmartProcurement, Mmadiboka Chokoe, Executive Manager Transnet Supplier Development, said that Transnet realises the importance of small businesses to the economic growth of South Africa, that over 12-million South Africans rely directly on small businesses for their livelihood and that small businesses provide work to almost 60% of South Africa’s employable population.

Transnet’s R300-billion infrastructure development strategy – an extensive expansion of rail, port and pipeline infrastructure across South Africa – offers solutions to the national challenges of infrastructural development; training and skills transfer; and unemployment reduction for a transformed South Africa.

The strategy, which will help the state-owned utility achieve its business objectives, involves facilitating the acceleration of enterprise development and supplier development initiatives to realise the best return on investment.

Transnet’s vision of delivering freight reliably requires substantial investment and effort in expanding its infrastructural and operational resources, while adhering to its mandate to help transform and build South Africa’s economy.“ Supporting and developing local suppliers is crucial for the sustainable achievement of this vision,” said Chokoe

Transnet Enterprise Development (ED) Programme

“ED is clearly aligned with our mandate as a state-owned company and serves as our contribution to the achievement of Government’s socio-economic objectives.” However, Transnet’s commitment to enterprise development (ED) reaches further than just compliance, said Harvey Marole, Senior Manager BBEEE and Enterprise Development.

Poverty reduction strategies will not bear fruit without the necessary financial and infrastructure support in the form of access to finance, training and mentoring of small businesses.

Consequently, economic growth is essential in addressing unemployment, inequality and poverty alleviation in South Africa. “ED is an important fundamental for economic growth.

Transnet ED Initiatives

Transnet’s commitment to social and economic change has inspired a wide range of development initiatives including an innovative and integrated approach to supplier and enterprise development.

Transnet is in the process of creating an exciting range of developmental products and services for SMMEs, which will be targeting specific sectors within the Transnet supply chain.

These will include:

  • Business incubation.
  • Developmental loan facilities to companies in manufacturing and related services.
  • Micro-lending facilities.
  • Grants for enterprises in rural areas.
  • Business development and support services.
  • Business mentoring.

These initiatives will expand opportunities for small businesses, and will target black-owned enterprises with a turnover of less than R35-million to cover a broad range of designated groups with a key focus on:

  • Start-up and micro-enterprises in identified rural areas.
  • Black women-owned enterprises.
  • Black youth-owned enterprises.
  • People living with disabilities-owned enterprises.

For more information on Transnet’s Enterprise Development and the selection criteria, please contact Nico Mookeletsi ( or Given Somo (

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