City of Johannesburg SMME Expenditure Analysis: Supporting Small Businesses in 2021/2022
The City of Johannesburg's expenditure report for the 2021/2022 financial year reveals detailed spending on goods and services, with a focus on supporting Small, Medium, and Micro Enterprises (SMMEs). The report showcases expenditure breakdown by enterprise size, highlighting the substantial investment in SMMEs as well as designated groups like youth, women, military veterans, and people with disabilities. The City's initiatives to support SMMEs through procurement regulations and sector-specific spending are also outlined.
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CITY OF JOHANNESBURG SMME s EXPENDITURE REPORT CITY OF JOHANNESBURG
2021/2022 FINANCIAL YEAR EXPENDITURE ON GOODS AND SERVICES FOR THE CITY OF JOHANNESBURG (CORE) AMOUNTED TO R 4 216 575 048,81
EXPENDITURE BREAKDOWN THE EXPENDITURE REPORT IS BASED ON THE ENTERPRISE SIZE AS FOLLOWS: EME - ARE THE SMALLEST ENTITIES WITH THE ANNUAL TURNOVER OF LESS THAN R10 MILLION. QSE ARE THOSE ENTITIES WITH THE ANNUAL TURNOVER OF BETWEEN R10 MILLION AND R50 MILLION. BOTH QSE AND EME ARE CLASSIFIED AS SMME s. GENERIC / LARGE ENTITIES ARE LARGE ENTITIES WITH A TURNOVER EXCEEDING R50 MLLION.
THE PERFORMANCE OF THE EXPENDITURE SUPPORTING SMME TOTAL SPEND ON SMME R 2 130 928 078,31 TOTAL EXPDENDITURE R 4 216 575 048,81 Total Expenditure for the 2021/2022 Financial Year 49% 51% SMMES SPENT LARGE COMPANIES Spent
PERFOMANCE ON SUPPORTING DESIGNATED GROUPS YOUTH OWNED COMPANIES SPEND R49 938 686,52 Percentage spend on Youth owned Entities 1% Youth Total 99%
WOMEN OWNED COMPANIES R316 322 916,47 Percentage spend on Woman Owned Entities 7% Woman Owned Total Expenditure 93%
MILITARY VETEREN R90 770 408,79 2% Military Veterans Total Expenditure 98%
PEOPLE WITH DISABILITIES R3 587 790,04 Percentage spend on Entities owned by People with Disabilities 0.08% People with Disabilities Total Expenditure 99.92%
INITIATIVES THAT THE CITY EMBARKS ON TO SUPPORT SMME s The City abide by the PPPFA 2017 Regulation 9 when it comes to Sub-Contracting as condition of tender, where feasible. Regulation 8 Local production and content, to boost the local economy by supporting designated sectors. Regulation 4 - Pre Qualification Criteria for Preferential Procurement. The City spend a majority of its budget of goods and services on the following commodities: ICT, Attorneys, Construction, Fleet services, among others.
INITIATIVES THAT THE CITY EMBARKS ON TO SUPPORT SMME s Early Payment Improve supplier financial sustainability through improved cash flow by providing early payment from invoice receipt date (Merchant Payment) Mentoring and training Conduct tender process information sharing sessions e.g. SMME supplier day(DED) Establish SMME Help Desk to provide instant assistance/one stop shop (DED) Proactive Tender Engagement Create a database of all registered SMME s per commodity and proactively alert them of available tender opportunities to participate
