The City of Cape Town has again shown that it is committed to enabling businesses to operate in a sustainable manner by paying for the majority of goods and services within a month.
The City has surpassed its own targets for the timeous payment of service providers and suppliers by paying 97% of them within the first month of a service having been delivered, where possible. This is for the last quarter of the previous financial year. Late payments weaken the economy on all levels, therefore having a negative effect on job creation and growth.
‘This is another example of how good governance is an absolutely vital pillar of economic and social opportunities. If one looks at the South African context, great challenges are experienced by service providers when it comes to the timeous payment by the State and other government levels such as municipalities.
‘Many small businesses simply go under when they have to wait months on end for payment of a service that they had provided. Small- and medium-sized businesses especially do not have the capital resources to wait for lengthy periods of time for payment. It is therefore very important that government ensures their sustainability and enables their growth, which leads to increased job creation and ultimately to social stability,’ said the City’s Mayoral Committee Member for Finance, Councillor Johan van der Merwe.
The City is constantly looking at all of its financial and operational processes to ensure that improvements are made where possible. This is in line with our Organisational Development and Transformation Plan which seeks to position Cape Town as a globally competitive business city by forging relationships between government and the private sector to encourage growth and job creation.
For further information, residents should please visit the City’s website.