The Square Kilometre Array (SKA) SA has received R34.5 million funding.
Big four bank Absa has partnered with SKA SA and NMC Civils in an enterprise and supply chain initiative to develop and support small and medium enterprises (SMEs) in the Northern Cape through the SKA programme.
The SKA will be the world's largest radio telescope - a hundred times bigger than any current radio telescope - and is set to revolutionise the world's understanding of the universe.
It will be built in two phases - SKA1 and SKA2 - starting in 2018. SKA 1 will include two instruments: SKA1 MID (to be built in SA) and SKA1 LOW (to be built in Australia); they will observe the universe at different frequencies.
The investment is a shot in the arm for SA which faces inadequate funding in science and technology. Delivering her budget speech last month, science and technology minister Naledi Pandor lamented that the country is not investing enough in science, technology and innovation.
"The SKA remains a major platform for cutting-edge innovation in domains such as supercomputing the high-speed transmission and processing of massive data sets," Pandor said.
According to SKA SA, the funding is essentially coming from SKA, which has appointed NMC on a tender. A localisation clause is included in this contract that requires local contractors benefit from the contract. To assist the involvement of the SMEs on the contract, SKA has approached Absa to assist with providing bridging finance to the companies.
Under the partnership, Absa will fund qualifying SMEs that have been sub-contracted to provide goods and services to NMC Civils - a member of the NMC Construction Group. NMC is the main contractor for the construction of a road linking Carnarvon in the Northern Cape and the SKA SA Losberg site.
SKA SA has invested in the local contractors through various initiatives. The SKA SA, NMC Civils and Absa partnership follows training by SKA SA and NMC Civils, during which local contractors from Carnarvon, Williston, Vosburg, Brandvlei and Van Wyksvlei were taught business and technical skills to participate in various subcontract work packages in the project.
By partnering with Absa, SKA SA and NMC Civils, the companies say they are helping to create market linkage and access to funding opportunities for the local contractors in the Northern Cape.
The funding will be allocated to the SMEs subcontracted by NMC Civils, a portion of which has been managed by NMC prior to this partnership. The project is envisaged to conclude by the first quarter of 2017.
"The investment in the Karoo and in local business in Carnarvon and surrounds is of paramount importance to SKA SA. We have rigorous community development programmes in place that focus on five areas and this partnership speaks directly to the focus areas of community upliftment and supporting the development of SMEs in the communities," says Dr Rob Adam, project director of SKA SA.
KeaObaka Mahuma, head of enterprise and supply chain development at Absa, says the collaboration with SKA SA and NMC Civils is in line with the bank's strategic approach to support the sustainable development and growth of SMEs through providing funding and facilitating links into the supply chains of established corporates operating in local communities.
"As a bank, we recognise the importance of SMEs as an engine of economic growth and we are committed to partnering with our corporate clients to develop sustainable SMEs in local communities in which our clients operate.
"By collaborating with SKA SA, Absa will be able to provide SKA SA's SME suppliers with access to development finance. These are SMEs that would not ordinarily qualify for lending through traditional channels. All funding advanced under the Supply Chain Development programme will be linked to a business development support package to improve the business owners' business and financial management skills, as well as provide them with networking opportunities and access to markets," says Mahuma.
"The NMC Construction Group is proud to have its civils division, NMC Civils, be a part of this exciting initiative. Its aim as a role player in this initiative is to create a conducive environment for the partnership to succeed and allow the local contractors to flourish. NMC Civils' support of this programme forms part of the group's ongoing commitment to enterprise and supplier development," says Bonke Simelane, director of group corporate services at NMC Civils.