Page 32 - IDC

6 CITY PRESS, 23 OCTOBER, 2016

business

OPINION

Minority privilege

is unsustainable

FUMANI MTHEMBI
business@citypress.co.za
A
What does it mean to be a young black female entrepreneur? I am responding
to the question as an operator in the independent energy-generation sector.
Currently, the sector is failing to advance some of our most critical national PROJECT IN
development objectives. The department of energy’s initiative, known as the PARTNERSHIP
Renewable Energy Independent Power Producer Procurement Programme, is a
key vehicle for securing electricity capacity from the private sector for WITH THE
renewable and nonrenewable energy sources, as determined by the minister
of energy. It has been hailed globally as a feat in state procurement.
Its role in supplying the power needed by Eskom to repair its old IDC
infrastructure – and bringing an end to the misery of load shedding – is well
documented. In addition, it has consistently featured in state of the nation
addresses for having attracted foreign direct investment and created jobs.
It is because of this programme that my four business partners and I were
able to move from our garage start-up to become one of the leading
independent power producers in South Africa. So, why would I criticise the
procurement programme that made it possible for a young black woman like
me to participate in our economy as an entrepreneur?
I critique it because I recognise that my private gain, in terms of my ability
to participate in the programme, is less a reflection of the entrepreneurial
genius of my partners and me than it is a reflection of our marginal privileges.
These privileges, which include access to information, networks, education
and employment, are not common among South Africa’s black youth.
Therefore, the fact that our participation hinges on minority privilege reveals
that the sector carries a fundamental sustainability risk.
The programme has defined black people as “rent-seekers”. I use the term
‘rent-seeking’ to mean that we are deemed to be entrepreneurial for seeking
out white or foreign people who have created value, and then attaching
ourselves to them as “transformation partners”.
We are forced into this position as there are no institutions willing to free
up capital for us to do the work of entrepreneurship – to organise all factors
of production for the purposes of power generation. As a result, it is easier
to raise R200 million to be a transformation partner to a white person than
it is to raise R2 million to develop your own power project as a black player.
I am not making a case against BEE, but one for redefining the notion of
economic participation. We need a state programme and procurement
programmes that fund and incentivise our active participation, so that we may
enter into opportunities as partners, not passengers.
Also, the independent power production sector has failed to invest the
requisite resources into the development of energy communities. Despite
decades of evidence that corporate social investment has failed to scale for
impact, the state still seems unable to provide the correct level of governance
for community development. Thus, where we already have a commitment
exceeding R25 billion towards the development of energy communities, we run
the risk of wasteful expenditure. This is because the state lacks the ability to
transfer development priorities, guidelines for engaging communities and
impact targets to the private sector.
These flaws are not unique to the energy industry. They permeate the
economy, reflecting an absence of a coherent, state-led vision for
development. Specifically, it is the unique contribution of business in general –
and black-owned businesses in particular – that is poorly articulated. Yet our
historical context provides sufficient clarity on this question.
South African businesses should exist to innovate for development. They Restless for success
should be judged and supported on their ability to advance the African Restless for success
renaissance – the restoration of Africa’s place among other civilisations.
What is it like to be a young black woman working in this sector? It is an
honour to be at the coalface of one of the country’s newest industries and to
use my position to advocate the just inclusion of all who reflect the beauty
and genius that is Africa.
Mthembi is a co-founder of the Pele Energy Group. She oversees its research
and development consulting subsidiary, Knowledge Pele

The IDC’s first youth hey are young, restless and African products. He described it to City
#SAUnder conference gave Tgiven a chance to ask Press as a “mall in the sky” that will “give
desperate to be heard.
This was the common
the little guy [start-ups and small
36 and served as a forum questions from the floor at the first we believe we have touched the future and
thread when
businesses] a fighting chance”.
entrepreneurs were
“This is innovation and nobody
entrepreneurs a voice
knows how to cultivate it,” he told the
gathering.
During her presentation, Fumani
youth conference hosted by the
Industrial Development Corporation
Mthembi (31), one of the founders of
(IDC) this week. It was held in
the Pele Energy Group, described
Midrand in Johannesburg.
entrepreneurs as “restless spirits”.
to help them become
“We never get a chance from this side
“We believe we have seen the future;
of the table to speak,” an attendee, who
panellists.
manifest in today’s world.”
She added that, in terms of funding,
Another entrepreneur spoke about his
bring their innovative
there was little will to back “our biggest, brightest ideas,
challenges in trying to find funding: “The people with
OPPORTUNITY investment-ready and identified himself as “Mr President”, told the Buti Manamela that it is our responsibility to make that
because those ideas come with a lot of risk”.
money [funders] do not know what we are talking about.”
During a panel discussion on growing and supporting
Yet tapping into that risk was necessary to move South
PLATFORM ideas to market, youth-owned businesses, 25-year-old Tshepang Mahlangu Africa forward, she said.
described a similar struggle he had experienced with
Many speakers – among them, Deputy Minister in the
writes Liesl Pretorius development finance agencies. Presidency Buti Manamela – acknowledged young people’s
frustrations.
Mahlangu is piloting an e-commerce platform for South
Hello, #SAUnder36! ‘Don’t ever assume that you’ve arrived’
The Industrial Development Corporation launched a one-stop platform for young
entrepreneurs at its first youth conference, held in Johannesburg this week.
The #SAUnder36 website, which has been designed for easy access across devices,
aims to provide ongoing support and interaction focused on youth entrepreneurship LIESL PRETORIUS Malefane told City Press that he switched from
and other opportunities. business@citypress.co.za marketing, which was his field of study, to
In addition to serving as a source of information about funding and nonfinancial rehabilitating infrastructure in the construction space –
support opportunities, the website also provides the following: Entrepreneur Neo Malefane calls it his “9/11 moment” – building, plumbing and electrical – after crossing paths
. A networking platform; his first business crash, which was exacerbated by a with a fellow South African in China.
. Ideas Check, a tool through which you can test your idea – big or small – with the R1.8 million bill from the taxman. He ran into this acquaintance back in South Africa
experts; “Everything was in a shambles,” the CEO of Leano and they struck up a conversation, which alerted
. Inspiring stories of entrepreneurs’ successes and what they have learnt from failure; Solutions told attendees at the Industrial Development Malefane to the opportunity in construction.
and Corporation’s youth conference, held over two days this By the age of 24, his business had achieved a turnover
. Practical advice on everything from taxes to developing a business plan. week in Midrand in Johannesburg. of more than R2 million.
Visit saunder36.co.za His tax problems came on top of the collapse of a “I thought I knew it all,” he said.
number of partnerships, which had distracted him from Fast-forward two years and Malefane went through
Advice for entrepreneurs his own business. “It was a matter of diversification “18 months of pain”, during which he had to choose
gone wrong,” he said.
between making bond or car payments in a particular
A host of conference speakers offered sound advice, including these gems: It was then that the 30-year-old realised how little he month.
. Sifiso Ngobese (Founder of Unconventional Media Solutions): Invest in knew about business. This despite having “grown up “I was almost counting the slices in a loaf of bread. I
yourself before someone else invests in you. You cannot be half pregnant. If you have behind a till” and started his first business – a had to go back to my family [for support],” he recalled.
a dream, you have to fight for it. marketing concern – during his second year of study at His tenacity paid off.
. Fazlyn Toeffie (Marketing & new business development manager at the the University of Johannesburg. Today Leano Solutions has 71 employees, operates in
Gordon Institute of Business Science): Entrepreneurs are not necessarily born. Back then, he had no transport or capital. His first two provinces and has received funding from the Small
Planning and perseverance can be taught. loan of R2 500 came from his sister. Enterprise Finance Agency.
. Catherine Wijnberg (Director of Fetola): Too many entrepreneurs are focused His first asset was a computer. It allowed him to His advice to other young entrepreneurs?
on social entrepreneurship. Focus on succeeding as an entrepreneur. prepare quotes from his residence room instead of “The only arrivals terminal you should aim to reach
. Chimene Chetty (Director: Centre for Entrepreneurship at the using the university’s communal computer facilities. is the one at OR Tambo or any another airport. Make
University of the Witwatersrand): Entrepreneurs need to understand themselves “I sold my business as if I was an employee – as if sure that you never reach an arrivals terminal in your
as artists: How do you negotiate the space and what kind of an entrepreneur are you? behind me, there was a big operation,” Malefane said, entrepreneurial journey.”
. Lusapho Njenge (Chief strategy and information officer of the Small to laughter from the audience.
Enterprise Development Agency): Start small, but have a big vision. – Staff “My clients were unaware that I was the only guy Neo Malefane, CEO of Leano Solutions
reporter they would be dealing with.” PHOTO: EUGENE GODDARD