Localisation and ESD


Transnet has a significant role to play in facilitating the expansion and competitiveness of the South African economy by creating policies that support Enterprise and Supplier Development ("ESD") with the goal of enhancing economic access for those who previously lacked it.

However, the historic lack of investment in infrastructure has had a significantly negative impact on local industry, resulting in the loss of scale and a decrease in manufacturing industry capabilities.

To bridge the gap Transnet has entered strategic partnership with National Association of Automotive Component and Allied Manufactures (NAACAM) and the National Empowerment Fund). This ESD initiative is aimed at developing local manufacturing capacity and capability in the core business of Transnet.

This initiative will not only assist in developing a pipeline of suppliers but will also help Transnet accomplish its social, transformation and developmental objectives, whilst supporting South Africa's national B-BBEE priorities.

Furthermore, it will contribute towards alleviating our country's triple challenge of inequality, unemployment and poverty.



Enterprise and Supplier Development ("ESD")

Transnet's partnership with NAACAM through Enterprise and Supplier Development - aims to develop local manufacturing capacity and capability in the core business of Transnet. This is aimed at increasing local content and reducing the current over reliance on imports.

In order to provide the necessary financial support to the participating enterprises, Transnet has also partnered with NEF through a 50-50 matching principle which will allow the beneficiaries to have access to an additional source of funding, while empowering them in line with Transnet's core operations.



Why, Where, What, Who & How?

 

WHY: Enterprise Development (ED) and Supplier Development (SD) are important elements that enables Preferential Procurement. The aim is to increase local content and reduce reliance on imports.

WHERE: Within the borders of South Africa particularly in areas where Transnet has a footprint.

WHAT: Localize services and products which were previously sourced from abroad by increasing the capability and capacity of the South African Economy.

WHO: Suppliers in the rail, ports and automotive manufacturing industry who are 51% - 100% Black Owned and either a QSE/ EME for SD or a vendor that is an EME/QSE that is Black owned for ED.

HOW: The growth of small, black-owned suppliers is guided by an ESD Policy, and localization strategy created by the ESD department. The localization approach will be implemented with assistance from NAACAM.


 

Fables Template

Transnet's ESD Service offerings



Unlocking the value of local SMMEs and their commercial viability.


Capability building of SMMEs through technical and business training and supporting aligned with procurement needs.


Collaborate with strategic partners and industry associations that can provide additional resources and support for ESD initiatives.


Facilitate access to funding and post funding support thus contributing towards boosting financial viability of the SMMEs.


Provide supplier development support to enable access to supply chain opportunities.



NAACAM's Key deliverables

To analyse Transnet procurement categories to determine commodities suitable for localisation.

To analyse Transnet procurement categories to determine commodities suitable for localisation.

Conduct market analysis to determine the best tactics and approach to localisation.

To develop local manufacturing commodities for Transnet as well as other industries and ensure accreditation by the relevant OEM, where applicable.

To negotiate long term partnerships with international OEMs to support local suppliers.

NEF's Key deliverables

To provide financial and non-financial support to Transnet suppliers

Address market failure associated with access to finance, through co-funding in terms of this Agreement.

Address market failure associated with access to finance, through co-funding in terms of this Agreement.



 

Fables Template

Partnership with NAACAM and NEF



Benefits of the partnership:


Investment Machinery & Equipment


Job creation


Increased local production


Financial and nonfinancial support


SMME Funding Opportunities


Skills transfer


Technology transfer


Export opportunities



 

Enterprise Development hubs

The typical services that SMMEs can expect at the Transnet Enterprise Development Hub include:


Procurement Advisory services

Central Supplier Database Registration and Queries (CSD) Services

CIPC registrations

Training (contact branch for more information)


ED HUB Application Form


 

Frequently Asked Questions


How do I get onto the Transnet ED Hub supplier list?

Our application form is available on the website or alternatively you can visit your nearest operating branch for the application form.

Why are companies registered on the database and not called for quotations?

We are in the process of improving our systems to allow for constant review of our procedures which is intended to help distribute opportunities among the target groups.


How can I access Transnet tenders?

By visiting www.etenders.gov.za, you can view all available Transnet tenders on this website.

How do I become a partner with Transnet ED Hub?

Contact your nearest operating Transnet ED Hub branch for information.


What training is provided at the Transnet ED Hub?

What training is provided at the Transnet ED Hub?

Can I get a bursary from Transnet?

To view our bursary/learnership/ internship opportunities please visit Transnet website and click "Careers"


Where do I apply for Transnet vacancies?

To view our employment opportunities please visit our website on Transnet website, and click "Careers"