Gauteng Launches Merchant Development Programme to Boost Township Auto SMMEs

MEC Diale-Tlabela has long been a vocal advocate for transforming the transport and infrastructure sector into a driver of inclusive growth.

In a decisive move to unlock economic opportunity and break systemic barriers in the automotive sector, Gauteng MEC for Roads and Transport, Kedibone Diale-Tlabela, is set to launch the Merchant Development Programme (MDP)—a pioneering initiative designed to integrate small, medium, and micro enterprises (SMMEs), especially those in townships, informal settlements, and hostels (TISH), into the province’s fleet maintenance supply chain.

The official launch will take place on Thursday, July 31, at the Chamdor Automotive Hub in Krugersdorp, Gauteng. The event will bring together a cross-section of public and private sector stakeholders, including members of the Portfolio Committee on Transport and Logistics, Mayoral Committees on Transport, and top executives from WesBank, g-FleeT Management, and the Automotive Industry Development Centre (AIDC).

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Empowering Local Mechanics, Building Township Economies

At its core, the Merchant Development Programme is about inclusive economic transformation. It is spearheaded by g-FleeT Management, a trading entity of the Gauteng Department of Roads and Transport, in partnership with WesBank—one of South Africa’s leading vehicle finance institutions—and the AIDC, known for its capacity-building expertise in the automotive sector.

According to a statement from the department, the programme aims to empower and formalize township-based mechanics and auto repair businesses, giving them the tools and accreditation necessary to become approved suppliers in the provincial government’s vehicle maintenance supply chain.

“The Merchant Development Programme addresses structural barriers to entry and promotes real, sustainable transformation in the automotive industry. By onboarding, training, and accrediting TISH-area merchants, the programme offers a pathway from informality to full participation in public procurement,” the department explained.

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Key Features of the Merchant Development Programme

The MDP is a comprehensive intervention that goes beyond basic support. It includes:

• Enterprise Development and Incubation: Selected SMMEs will receive tailored business support, including access to working capital, mentorship, and compliance assistance.

• Technical Skills Training: Through the AIDC, participants will undergo formal training in mechanical repair, diagnostics, and fleet servicing standards.

• Accreditation and Quality Assurance: Mechanics will be supported in obtaining necessary compliance certifications, ensuring they meet both industry and government procurement standards.

• Onboarding into Government Supply Chain: Once qualified, merchants will be placed on the g-FleeT panel of service providers, giving them direct access to contracts for servicing government-owned vehicles.

• Location-Specific Targeting: The focus on TISH areas ensures that the programme benefits businesses in some of the province’s most underserved communities.

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A Step Toward Radical Economic Inclusion

MEC Diale-Tlabela has long been a vocal advocate for transforming the transport and infrastructure sector into a driver of inclusive growth. Speaking ahead of the launch, she noted that the Merchant Development Programme is a critical component of Gauteng’s broader township economic revitalisation strategy.

“We are not just launching a programme; we are launching opportunity. We are building an automotive economy that reflects the full diversity of our province—where township mechanics no longer sit on the margins, but operate as core contributors to public service delivery and job creation,” she said.

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Strategic Partnerships Driving Sectoral Innovation

The collaboration with WesBank provides SMMEs access to financial literacy tools, asset finance knowledge, and innovative credit support systems—an often overlooked barrier to scaling township enterprises. Meanwhile, AIDC’s technical and institutional capacity ensures that training is aligned with current industry standards, helping to future-proof the workforce as automotive technology continues to evolve.

g-FleeT Management, which oversees fleet services for the Gauteng provincial government, will serve as the implementation anchor, helping to match trained merchants with real procurement opportunities.

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Chamdor Automotive Hub: The Ideal Launchpad

The choice of Chamdor Automotive Hub as the launch venue is strategic. As a dedicated centre for automotive enterprise development, Chamdor offers state-of-the-art facilities for training, diagnostics, and enterprise incubation, and has been central to several of the province’s automotive industrialisation programmes.

The hub is poised to become a nerve centre for township-based automotive innovation, and the launch of the MDP there is expected to strengthen its role as a national model for public-private development partnerships.

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Looking Ahead

The Gauteng Department of Roads and Transport envisions scaling the programme across the province in the coming months, with continuous intake cycles, mentorship pathways, and a monitoring and evaluation system to track progress, impact, and replication potential.

By bringing together government, finance, and industry, the Merchant Development Programme represents a bold step in dismantling exclusion in one of the country’s largest economic sectors.