Gauteng MEC for Roads and Transport, Kedibone Diale-Tlabela, launched the Merchant Development Programme, a transformative initiative aimed at unlocking opportunities for township-based automotive businesses in Krugersdorp.
The programme is championed by g-FleeT Management, the Trading Entity of the Gauteng Department of Roads and Transport, in partnership with the Automotive Industry Development Centre (AIDC) and WesBank to address barriers to entry.
This ground-breaking initiative provides skills development, training, onboarding, accreditation, and assistance for future integration into the government’s fleet maintenance supply chain.
Speaking at the event, MEC Diale-Tlabela said this initiative is a bold move by the Gauteng Provincial Government to promote inclusive economic growth.
“This is not just another project, it is a bold and deliberate step toward realising the Gauteng Provincial Government’s commitment to inclusive economic growth”, MEC Diale-Tlabela said.
As proclaimed by Premier Panyaza Lesufi that 60% of the provincial budget must be spent within townships. “”This initiative will guarantee that we successfully transition from intention to execution”, MEC Diale-Tlabela hinted.
Township spending by the Fleet Maintenance Unit of g-FleeT Management increased from 7% to 10% as of October 2024, with a clear goal to reach 30% by the end of 2025.
“Each rand invested in township merchants contributes directly to job creation and community development; this programme is about more than numbers, it is about impact, dignity and participation.” MEC Diale-Tlabela added.
“In partnership with the private sector, we will continue to build an economy that values ambition and rewards ability regardless of one’s location,” MEC Diale-Tlabela concluded.
The AIDC CEO, Andile Africa, stated that they are proud to play a key role in this initiative by hosting, supporting, and developing these merchants here in Chamdor Automotive Hub.
Mr. Africa said that the AIDC provides the infrastructure, compliance support, training, and broader ecosystem benefiting merchants from being in a secure, Retail Motor Industry Organisation (RMI) approved facility.
“Merchant Development Programme is more than just repairing vehicles, it’s about repairing the structural inequalities of the past, building sustainable businesses, and creating real opportunities for people in our communities, shared Mr Africa.
WesBank’s National Contract Manager for Fleet Services, Mr Marcellus Mbanda, spoke to the RT46 contract, business model, and beneficiation approach to the townships, informal settlements, and hostels (TISH) areas.
WesBank plays a key managing role in the RT46 contract, which is a transversal government contract designed to streamline the acquisition, financing, and disposal of vehicles for national and provincial departments. RT46 contract is a transversal term contract managed by the National Treasury for providing fleet management services.
“Currently, the bank is working with about 243 merchants sitting outside the hub, benefiting through RT46,” said Mr. Mbanda, who emphasised that the Merchant Development Programme offers a dual approach to townships.
Mr Mbanda further confirmed that since 2021, the amount spent towards repairs by township merchants has risen to R37 million in terms of allocation of work.
