Busa, BBC to foster inclusive marketsNov 20, 2013
THE UN Development Programme (UNDP) signed a memorandum of understanding with Business Unity SA (Busa) and the Black Business Council (BBC), yesterday, establishing a forum to collaborate on developing more inclusive markets in South Africa.
The nation of inclusive markets refers to the extension of economic opportunities and choices to all segments of the population while effectively expanding the country’s economic activity. To give focus to inclusive market development in the region, the programme will examine strengthening local supply chains and entrepreneurial development.
In joint statement, the three organisations said it was widely acknowledged that government did not directly make prosperity nor could they become the engine for growth of the economy. They could only provide a conductive environment that would support private sector prosperity with the hope that the prosperity would translate to economic opportunities for all.
The UNDP, Busa, and the BBC said: “The challenge is in enhancing or promoting private sector contribution in expanding economic opportunities beyond providing employment. Failure by the private companies in expanding economic opportunities to its external environment may create cost and risk, particularly dependency.”Busa and the BBC have not been friendly towards each other, with the latter blaming Busa for neglecting the aspiration of black business. This led to the BBC breaking away from Busa earlier this year.
Phumza Manqindi a spokeswoman from UNDP, said that agency wanted to work with both organisations as it did not want the forum to be exclusive.
Sandile Zungu,the general secretary of the BBC, said: “it is important that business can bury the hatchet. This has to be a co-operative effort. We will work with whomever for economic growth.”
Busa said: “thought the inclusive market development programme, the three parties will conduct a global study of successful local procurement experiences, consult with relevant stakeholders on study results and design and implement a programme to facilitate greater inclusive markets.”
In South Africa, the UNDP’s mission is to strengthen capacity for participatory government and pro-poor growth based on normative and inclusive human rights principles.
The three organisations said expanding economic opportunities by linking small business into large companies value and supply chains created an environment for new businesses to enter the market and existing businesses to grow.
“As these businesses grow and gain experience they explore other economic opportunities than ones provided by large companies, thus stimulate innovation, productivity growth and diversification of the local economy,” they said.