in Business & Finance

SAA signs MoU with DTI to develop and support inclusive supplier sourcing and procurement

Posted 20 May 2015 · Add Comment

South African Airways (SAA) has announced that the airline has signed a Memorandum of Understanding (MOU) with the Department of Trade and Industry (DTI) in a commitment to develop and support inclusive supplier sourcing and procurement.

As national carrier SAA intends to lead transformation in South African aviation supplier development. The move also comes as the Board resolved to accelerate its enterprise development programme and focus on inclusive opportunities for black owned, women owned, disabled and youth owned businesses. Successful implementation of the new 3-year SAA Supplier Development Programme will see up to 50% of all consumable supplies sourced from empowered enterprises by end 2018. 

In partnership with the DTI the airline will source potential suppliers and provide training and development assistance through regular seminars and engagement sessions around the country. “There is immense value in nurturing entrepreneurs,” says SAA chairperson Duduzile Myeni, “while SAA will continue to derive value from competitive procurement. We are in the business of empowering entrepreneurs from disadvantaged backgrounds and levelling the playing field to deliver inclusive opportunity.” 

Deputy Minister of Trade and Industry, Mzwandile Masina says that “this is a historic milestone. As the DTI we are excited to be engaged in this partnership with SAA. It proves that our efforts as drivers of industrial policy are systematically linking together the various divisions of the state towards a common objective and qualitative outcomes of economic transformation.” 

“It is our intention to assume an active leadership role in enterprise development in South African aviation,” said Myeni. “Transformation and inclusive participation in the economy does not begin and end with employment equity alone. It is the responsibility of every South African company to provide opportunities, assist in developing and supporting emerging entrepreneurs. Small business drives our economy and represents the vast majority of the formal and informal sector; it employs the majority of South Africans.” 

Masina added: “The facilitation of black industrialists has to be deliberately undertaken in order to overcome the historically embedded barriers to entry that define the market mechanisms of our economy. The government and all public institutions must creatively utilise their public procurement capabilities to leverage the emergence and support for this entrepreneurial class of black industrialists that must drive the broad transformation of our economy.

 

“In undertaking this signing of the MoU, SAA correctly asserts its developmental mandate as a public entity. Our principles of consolidating a developmental state oblige us to establish a culture of socially responsive public institutions that act to promote the productivity of society. This combines the functions of institutions serving their direct mandates as well as helping various social groupings to benefit from the resources that public institutions have at their disposal”.

 

Myeni said that the up and downstream potential benefit will deliver to local, regional and the national economy. According to a 2013 study by Oxford Economics, the SAA Group contributes R 9.2 billion to the South African GDP (0.3%) of which R 1,6 billion is contributed through spending by employees and the company’s supply chain. The study also notes that 16 400 jobs are created directly through SAA’s supply chain. “Imagine when next a study reveals that SAA, or any company for that matter, has directly contributed to the development of new companies, new employment opportunities; this SAA initiative’s intent is to directly and positively impact this ideal.

 

“The public procurement arm of SAA has massive capacity to incubate an efficient and dynamic group of black industrialists. This will be a first step towards a broad procurement strategy by all State Owned Enterprises and government departments to incrementally set procurement targets that will boost the entrepreneurial efforts of these black industrialists,” said Masina.

 

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Etihad Aviation Group and Emirates Red Crescent support group travelling for Umrah as part of 'Year

Etihad Aviation Group (EAG) has taken part in an exciting philanthropic collaboration with Emirates Red Crescent, to support a group of 15 travellers in experiencing the holy pilgrimage of Umrah.

Family fortunes...

South African Express (SAX) and South African Airways (SAA) may be separate companies, but their corporate identities and destinies are closely intertwined. As Victoria Moores found out, both companies are battling a stagnant market

UAE Space Agency and Algerian Space Agency strengthen ties

The UAE Space Agency has signed a Memorandum of Understanding with its Algerian counterpart the Algerian Space Agency.

Boeing reports first-quarter results

The Boeing Company reported higher first-quarter earnings and operating cash flow compared to the previous year, driven by solid execution on production programmes and services.

Botswana terminal takes next step towards 2020 vision

The Government of Botswana says the construction of a temporary terminal building at Maun International Airport will be completed in May this year, although the rest of the infrastructure expansion project is due to be completed in

A new way to Scout out web booking

An innovative new charter sales platform, Jet Scout, has been introduced to the African and Middle East market. Vincent Chappard finds out why it is receiving a positive reaction.

EBACE17 SK0103240517
See us at
Aviation Festival BT25114617GroundHandling BT0303280917EBACE17 BT0103240517