Diepsloot Industrial Development Park Project
Partner name: Century Property Developments
Project name: Diepsloot Industrial Development Park
Funding round: CFP 2
Funding: Jobs Fund grant R405 971 300
Matched Funding R520 321 000
Website: http://www.riversandsihub.co.za
Window: Infrastructure
Location: Diepsloot, Gauteng
Partners: ABSA, Diepsloot SMME Forum, Gauteng Department of Economic Development and Gauteng Enterprise Propeller
Problem statement:
Diepsloot is a marginalised residential area with high unemployment levels. It was originally designed for temporary accommodation and has since grown into its current state. In most cases, employed residents spend an average of 40 percent of their salary on transport costs. Job retention is also low due to the unreliability of public transport and the necessity to change vehicles (taxis) a number of times before they arrive at work. SMMEs and established businesses have always been located in different areas because of associated costs like rent and infrastructure. This prevents integration and the ability of SMMEs and established businesses to leverage each other’s resources and capabilities. The primary barrier to large-scale industry using SMMEs is quality, security of supply, compliance with quality standards and cost.
Century Property Developments was established in 1975 primarily as a developer of shopping centres and has since diversified into exclusive residential estates and commercial developments. For this project, Century has partnered with ABSA, the Diepsloot SMME Forum, the Gauteng Department of Economic Development and the Gauteng Enterprise Propeller.
This project will create an SMME incubation hub with large industry. The large businesses can mentor the SMMEs on a daily basis and build up the products and services offtake until SMMEs become a major part of their production. This quality assurance will be further strengthened through the incubation programme, where expertise from finance to engineering will be provided to the SMMEs at no cost. The Riversands incubation hub is located in the heart of the new Riversands Commercial Park and has the potential to transform the socio-economic environment of nearby Diepsloot. The hub’s incubation programme nurtures small and micro enterprises – principally, but not exclusively from Diepsloot – by mentoring and supporting them to become fully fledged, formal businesses. Emphasis is on small and micro enterprises that fulfil a market demand. A number of black economic empowerment benefits will accrue to corporates participating in the hub. The goal is to attract SMMEs that will provide goods and services at quality and price levels that make them an asset to any company supply chain.
Expected results:
New permanent jobs 1 440
New short-term jobs 1 081
Training completed 1 440