The eThekwini Municipality, the KwaZulu-Natal Oils (Pty) Ltd group, and the Department of Economic Development, Tourism and Environmental Affairs of KwaZulu-Natal (EDTEA) plan to sign a Memorandum of Understanding (MoU). The goal of this agreement is to provide support to 20 small, medium, and micro enterprises (SMMEs).
Support Program Concept
The proposed collaboration between the eThekwini Municipality and KwaZulu-Natal Oils Group (Pty) Ltd aims to remove obstacles faced by entrepreneurs in urban and suburban areas. In a report presented to the council on Tuesday, the municipality indicated that the KZN Oils Enterprise and Supplier Development (ESD) Project 10X Unicorn program was developed in October 2024. This was done in response to entrepreneurial challenges related to limited market access, insufficient funding, fragmented mentorship support, and weak operational systems.
Initiative Implementation Mechanism
The ESD initiative was launched during the Municipality's Business Fair seminar in Durban in 2024. According to the municipality, the main outcome of the seminar was the intention to support 20 SMMEs, with KZN Oils acting as the custodian and organizer of the six-month ESD program. Although about 74 SMMEs applied, selection criteria focused on compliance requirements, business tenure, growth potential, alignment with the KZN Oils Group value chain, potential community impact, and the presence of entrepreneurial mindset with improved operational readiness.
Partnership Terms and Support
The Municipality is preparing to sign a three-year Memorandum of Understanding with KZN Oils, also including the Department of Economic Development, Tourism and Environmental Affairs of KwaZulu-Natal (EDTEA) as a strategic partner of the program. The Municipality, EDTEA, and KZN Oils must establish a steering committee to fulfill the goals of the MoU and support the programs. These programs include a structured six-month mentorship and coaching program for businesses.
Under this MoU, all three parties will combine their resources, expertise, and infrastructure to assist SMMEs. Support will include the transfer of technical skills in business management, provision of procurement opportunities, and access to financing. The Municipality emphasized that this collaboration should contribute to sector growth, job creation, and poverty reduction in eThekwini.
Role Distribution and Financial Assistance
The powers and responsibilities of each interested party are defined as follows: EDTEA will provide financial support of up to R10,000 for each eligible SMME, but no more than for 25 such enterprises, and will also offer additional assistance to improve competitiveness and sales performance. The Municipality, in turn, will provide non-financial support jointly with KZN Oils and EDTEA to facilitate SMMEs' access to resources to enhance their potential, and will oversee the awards ceremony.
The Municipality stated that designated officials will meet monthly to analyze progress, identify issues, and propose corrective measures. The Memorandum of Understanding will establish clear mechanisms for the effective implementation, coordination, and monitoring of joint initiatives aimed at enterprise development.