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Summary African community Reinvestment Act

Article written and sponsored by MATLA

 

The proposed African Community Reinvestment Act (“ACRA”) seeks to expand community development, investments and services that support, enable or facilitate projects or activities in poor communities. The affected institutions (Banks, Development Funding Institutions and Economic Clusters of Government (including SASSA) will be required to submit a consolidated ACRA strategic plan per region for public participation, and thereafter submit five-year ACRA plans for approval.

 

These documents must include annual measures for tackling the investment, service, and funding needs of ACRA. ACRA compliance will be a legal requirement, and affected Institutions will be expected to be proactive in developing strategies in line with the Act. Similar to BBBEE, the proposal is that should be   require government to consider ACRA performance when conduct business with private sector, in addition to technical requirement. ACRA contribution and performance to be used as part of the assessment criteria.

 

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Who is MATLA

 

The Act will increase equitable distribution of investment, transparency and oversight on where investments are made and their evaluation processes. There will be arguments about its necessity and effectiveness, but MATLA believes that the affected institutions are not doing enough reengaging in poor community development activities. Through enforcement of the Act, ACRA investment will improve the capita income of the country, and most importantly, Africans.

 

Localisation of economic activities

Technology makes it easier to conduct agro-processing, as well as food and other basic consumables production. Our people do not have to spend the whole day toiling in the sun. The proposal is the redevelopment of village economies by utilising technology, i.e. aquaponics, hydroponics, automated brick plants etc.

The proposed economic policy is looking to rebuild communities based on agro-processing and localisation of retail businesses. Lack of skills is generally used as an excuse by the system to discriminate Africans. South Africa was built by the sweat and suffering of Africans and they have not benefitted from it economically.

 

MATLA’s principle is that all projects in communities must be carried out by locals and every community deserves to have funded economic development projects. Projects such road construction, building, feeding schemes etc. must be done by locals from locally produced inputs. All products consumed in any communities (including those of mines and businesses in the area) must be produced by the community and in cases where products cannot be produced locally, there must be tariffs levied for the benefit of the community.

 

The money that enters the community must circulate in the community at least 4 times before it leaves the community. The current system does not allow money to circulate in communities, and this is what perpetuates poverty. Wealth is created by the circulation of money.

 

Community Development Compensation

 

The Community Development Compensation program proposes that some social grants be replaced by a living wage, currently estimated at R 2 500. The proposed program will utilise budget available from 1. Some social grants, 2. Government savings provided by ACRA, and income generated by the community projects.

Social grants

The newly named ‘Community Development Compensation will replace the following current grants:

  • Child Support Grant
  • War Veteran's Grant
  • Disability Grant (this is in the spirit of getting the disabled active)

This grant will only be paid to beneficiaries who participate in at least one economic development project within their community. The existing pay-out for the rest of the social grants (e.g. pensioners’ compensation) will remain as it is. However, should the beneficiaries decide to participate in economic activities in their communities, i.e. the elders (pensioners) decide to share their knowledge with the young by participating in community projects; their social grants should be doubled.

ACRA will feed and educate Azania. The social grants’ beneficiaries will earn their Community Development Compensation with pride, knowing that they are paid for their contribution towards the development of their communities and South Africa at large. ACRA will bring back dignity to Africans, and stop them from being economic slaves and charity dependants. There is no pride and dignity in poverty and charity.

 

Government saving

  • The communities will be active - an active nation is a healthier nation. This will bring about a health cost saving
  • Community development activities will counter boredom and as a result, reduce crime and irresponsible sexual activities. Again, a saving on healthcare and an increase in safety and security and
  • Saving on the road maintenance budget. Limited transportation of good and services from other regions into communities will save cost on government through reduced road maintenance.

Income generated from community project

Ultimately, this project will be fully funded by income generated from community projects, and as local economies develop, fewer people will rely on Community Development Compensation.

 

This policy is aimed at creating a mentality of earning a living and eliminating the current mentality of entitlement, charity and receiving a grant. South Africa must move from the mentality of demanding free this and free that.

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Who is MATLA

Article written and sponsored by MATLA

 

MATLA is a proposed economic development movement for Africans that will be established with the sole purpose of advancing the African Community Re-investment Act (“ACRA”).The plan is to build alliances with organisations that are pro-localisation of economic development activities. Initially, the alliances will consist of people and organisations that are pro-ANC policies; the focus being business organisations and local economic development forums that will play a critical role in developing the economic development plans of each community and mobilise resources from affected institutions. The ultimate objective is not to be a political organisation but to advance the economic interest of Africans and South Africa. However, to successfully push for ACRA, the movement is planning to contest two national elections and one local election.

 

The planned movement will contest the 2019 election as an independent; however, it will endorse ANC candidates. As an Independent ANC alliance, MATLA believes that is will be able to hold ANC accountable to implement its own policies. MATLA will contest the 2019 election with CR19 as its presidential candidate and will support all his ANC appointees. His mandate will be to implementation ANC policies. The challenges that the country is facing is not because of inadequacy of ANC’s policies, but the implementation of those policies. The reason for the formation of MATLA is to group frustrated ANC policies sympathisers into a block that will be able to influence the ANC independently. The aim is not to change ANC’s policies in the next 10 years except for the proposed African Community Reinvestment Act (“ACRA”).

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African Community Reinvestment Act

 

The current ANC policies are appropriate but there is a need to keep them evolving and updated as the world around us is changing. Additionally, the current form of government will not achieve long term success for South Africa. The current system allows a significant portion of supreme control over the government to be decided by a collective of people with different interest as opposed to individual communities deciding on their appropriate economic policies that will best serve their community’s interest. It is counter intuitive for community economic development activities to be decided by people not from the community. Different communities have different economic interest, and this leads to misaligned distribution of investment for different communities.

 

MATLA’s main proposal is that economic development investment decisions must be localised. Central government tends to favour provinces/communities that are perceived to have political influence (and are already economically developed), at the expense of equal community economic development for all South Africans.

MATLA will be established to promote and develop distributism economic ideology, where property ownership is a fundamental right of every South African and to disperse economic power to individual communities… where means of production are to be spread as widely as possible rather than being centralised under the control of the state, few individuals and corporations.          The current government system is flawed and exploitative.

 

The proposed system seeks to subordinate political activities to economic activity and human life as a whole. The system will eliminate the current wasteful government pyramid that is not serving local communities. It makes it difficult for communities to implement its own localised economic policies. MATLA will eliminate replica departments at national government, provincial government, district municipality and local municipal level. The traditional council will play a leading role in replacing the current system of councillors considering the administration costs incurred through duplication of functions are wasteful and also encourage corruption.

There is no reason why a department based in Pretoria should decide the developmental needs of communities that they have never seen. How will the minister know the needs of communities they do not know?

The needs of local communities get lost in translation from local community, to local municipality, to district municipality, to provincial and to national department and only then to parliament. Local communities must decide on their own developmental needs and central government must focus on availing resources to facilitate those developments.

 

MATLA favours the dissolution of the current banking and investment system that is discriminatory and excludes the people it is supposed to serve. The current system continues to make Africans economic slaves. The first proposal under the proposed system is ACRA. The proposed Act will be issued for public comments in due course and will be the manifesto of the movement. The focus of ACRA is:

  1. Localisation of economic activities:
    • Agro and food processing – communities to be self-reliant when it comes to food and basic consumables;
    • All projects in communities to be carried out by local community members; and
    • All basic consumable products should be locally produced and any importation of goods into a community should levy tariffs towards community development.
  2. Current grant system to be replaced by “Community Development Compensation”. The compensation to be increased to a living wage, currently ca R 2 500; and
  3. Affected Institutions (Banks, Development Funding Institutions and Economic Cluster of Government including SASSA) to make set minimum investment in income generating activities in every community – there is no community that will not have investment from affected institutions. Currently, investments are not being made in poor areas and these are communities in dire need of those investments.

 

Affected institutions are comfortable making investments in already developed areas and only providing donations and charity to underdeveloped areas.

 

The current system is continuing to deprive Africans of their rights to dignity and pride in earning a living, and perpetuates the mentality of charity, dependency and entitlement (free this free that). MATLA will focus on fighting institutional racism when it comes to investments in Africans and African communities. The current government policies encourage economic racism and exclusion of ordinary South Africans. The system is so well designed, that it is promoted by blacks, to blacks.

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