Thembi’s story
Deep in the hustle and bustle of Egoli, historically known as the city of gold, lies a seed of hope. A seed of hope to alleviate poverty, unemployment, crime and to bolster the country’s economy. Conceived by Thembi Gumede, a young entrepreneur, this seed of hope is known as Tees Techno Solutions. This SMME has positioned itself as an innovative service provider to address the escalating digital needs of Johannesburg.
Thembi personifies the typical South African dream, catalysed by resilience, determination, and a courageous spirit. But there’s a thunderhead emerging over Thembi’s enterprise. This threat isn’t fierce market competition, nor is it the shortage of skills and talent. It is the vile venom of corruption which proliferates through various systems within South Africa, threatening to ravage the dreams of entrepreneurs like Thembi.
Thembi’s opportunity came in the form of a tender from a state-owned enterprise and Tees Techno Solutions, with its cutting-edge technology and driven workforce, rose ahead of its rivals as a serious contender. Her company had won a tender to provide a transformational digital solution for Johannesburg’s transportation system. When her company won the bid, Thembi’s heart leaped as the result of her team's dedication and commitment.
The elation, however, was swiftly supplanted. Thembi was discreetly approached by a high-ranking company official. He made it unambiguous with an unpleasant smirk that while Tees Techno Solutions had won the bid on paper, the actual cost of obtaining the contract would be a “donation” paid under the table: a bribe. The amount demanded was sufficient to rattle the SMME’s financial stability. Thembi would have to part with 50% of the contract value.
Thembi made the challenging choice to pay the bribe. Fearing the repercussions for her employees and the eventual demise of her enterprise if she lost the contract, she felt had no other option. Nevertheless, the triumph had lost its appeal; it was tarnished, a hollow victory. Tees Techno Solutions suffered tremendously as a result of the payment. The corrupt were given resources intended for innovation and employee growth. The SMME’s growth stalled, employees had salaries reduced, and the planned digital transformation of Johannesburg’s transportation system was thwarted by financial limitations as a result of the bribe.
While Tees Techno Solutions was being applauded in the public eye for securing a major contract, an invisible battle was raging in the background. Thembi, once an embodiment of the burgeoning entrepreneurial spirit in South Africa, was left angry and wrestling with a deep sense of disillusionment.
In fiction lie the facts
Thembi and her story are, of course, a composite which we have knitted together for a purpose. Her story serves as a sobering reminder of the hidden costs of corruption in South Africa, which include squandered opportunities, thwarted innovation, and an erosion of the morale of those who dare to dream.
Despite this, the tenacity and indomitable spirit of South Africa's entrepreneurs shine on, beacons of hope amid the shadows of bribery and avarice. There are many real companies out there, just like the fictional Tees Techno Solutions, trying to navigate the turbulent oceans of corruption. Their struggles to stay afloat are not fictional.
Over the decades, corruption in South Africa has morphed into a notorious adversary which has cast a shadow over the nation. Small, medium, and micro enterprises (SMMEs) have played an instrumental role in advancing South Africa's economic development agenda since the country's transition to democracy. As in numerous other developing countries, these businesses have been viewed as the primary generators of job creation and the propellants of progress.
Transparency International research found that SMMEs in South Africa have experienced corruption to varying degrees, ranging from payments to gain contracts to nepotistic hiring practices to outright extortion. SMMEs are deprived of the necessary resources for survival and expansion due to this corruption tax, which is both visible and invisible.
According to the National Development Plan, SMMEs are likely to be the source of a significant portion, over 90%, of the 11 million employment opportunities projected to be created by 2030. Statistics SA found in 2020 that, in terms of turnover by business size, small enterprises contributed R2.3 trillion (or 22%) of the total R10.5 trillion.
But corruption persists as a critical problem that needs to be tackled swiftly.
The growth and profitability of these enterprises and of the broader economy is being impeded by corruption. It grossly undermines legitimate competition, hinders investment, diverts resources from essential services, and diminishes public confidence in institutions of government. To make it possible for SMMEs to flourish while generating employment opportunities and contributing to South Africa's sustainable economic development, corruption must be dealt with.
The pernicious grip of government corruption creates an enormous obstacle to the development and success of SMMEs. The corrosive repercussions of corruption may hamper these enterprises' potential and hinder innovation as they seek to contribute to job creation and economic growth. Corruption destroys the foundation that SMEs need to thrive by diverting resources, fostering unfair competition, and cultivating a climate of mistrust.
Action must be taken swiftly and decisively because only by working together can we ensure that SMEs remain the lifeblood of our economy and engines of progress.
Government corruption has evolved into a voracious parasite that feeds on the lifeblood of SMMEs, inhibiting their growth and depriving them of their fundamental opportunities to prosper. This might be the era to unravel the chains of corruption, freeing SMMEs to thrive and paving the way for a future in which morality reigns, innovation thrives, and economic growth becomes an unstoppable force for South Africa.
Nonhlanhla Metsing is a corporate executive who has over 15 years’ experience across diverse sectors, namely FMCG, logistics and more recently oil and gas. Her expertise lies in leading successful teams in the corporate sector. She holds a Wits MBA and an M.Phil with a focus on corporate strategy from GIBS. She is also a Wits Business School certified leadership coach and served as a non-executive director and the chair of the ethics committee at Blendcor. She is passionate about ethical leadership, governance and participating purposefully in the private sector. She also spends her time mentoring and coaching, specifically entrepreneurs and women leaders.
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