12 minute read
Development finance and SMME support
Wild Coast farmers are supplying new markets.
Queens Greens, a small farming company, has recently expanded into new markets with the support of the Wild Coast Sun. A new borehole and irrigation system (pictured) has been provided to Queens Greens, enabling them to go beyond being a supplier to the resort and to start supplying local markets with fresh produce.
The Wild Coast Sun’s Enterprise Development Programme has trained and supported seven local SMMEs, which employ a total of 42 people. The resort aims to achieve 90% procurement of all goods and services from BBBEE level 1 suppliers within the next five years.
In early 2022, the Wild Coast Sun hosted a two-day SMME Business and Networking Conference which was attended by 150 people. Among the bodies represented were the Small Enterprise Development Agency (Seda), the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism (DEDEAT), the Eastern Cape Gambling Board, the Winnie MadikizelaMandela Local Municipality and the Small Enterprise Finance Agency (Sefa), as well as several SMME financing houses.
Work is underway to refurbish several state-owned industrial parks. Not only will areas like the Dimbaza Industrial Park assist SMMEs with affordable space, the programme has so far created 379 jobs and involved 71 local SMMEs. Provincial government departments are encouraged to buy from SMMEs and the current administration had spent by December 2021 58% of its procurement budget (R24.3-billion) purchasing from local suppliers.
The National Department of Small Business Development (DSBD) has a Shared Economic Infrastructure Facility, which is investing R34.7-million in support of Eastern Cape projects: the KwaNtozonke Product Market in King Sabata Dalindyebo Municipality and the Chris Hani Co-operative Development Centre in Chris Hani District. A further R1.9-million has been allocated to 141 informal and micro businesses in the Amathole and Joe Gqabi district municipalities.
Volkswagen South Africa (VWSA) has a project called Ntinga (“to soar” in Xhosa) whereby suppliers receive training and are mentored for 18 months.
Two of the Eastern Cape Development Corporation’s seven business units are devoted to small business: Development Finance and Enterprise Development. The ECDC has several financial products tailored to SMMEs. The ECDC and the Technology Innovation Agency (ITA) jointly run the TIA-ECD Innovation Seed Fund Programme, which aims to identify and cofund earlier stage technology innovation projects. Help Desks have been established to support small business in Port Elizabeth and East London.
The Small Enterprise Development Agency is an agency of the DSBD which gives non-financial support to entrepreneurs through training, marketing and assistance in the writing of business plans. The Seda Technology Programme (Stp) helps potential businesses become trading entities. ■
ONLINE RESOURCES
Eastern Cape Development Corporation: www.ecdc.co.za Eastern Cape Rural Development Agency: www.ecrda.co.za SECTOR INSIGHT The upgrade of industrial parks is creating work.
Supporting Eastern Cape business
The Eastern Cape Development Corporation boosts the local economy with targeted programmes.
Participants in the Mdantsane Motor Mechanic Enterprise Development Programme received toolboxes to celebrate having their businesses registered.
The Business Development Services Unit of the Eastern Cape Development Corporation (ECDC) forms the backbone of the enterprise development ecosystems which ensures the sustainability of business.
Business Support The Business Support sub-unit provides non-financial pre-investment and post-investment support, ensuring that businesses are ready for finance, market ready and poised for long-term growth.
Ongoing support is available through mentorships, market access opportunities as well as business and financial management advice. The unit offers both strategic and operational services to equip small businesses to perform to their full potential, with increased profitability and improved management processes that enhance their long-term viability.
The Business Support sub-unit promotes a culture of entrepreneurship, improvement in business competitiveness and facilitates access to market and to education and training for SMMEs.
Services include: business networks; advisory support; business plan development; feasibility studies; due diligence; mentorship and coaching; quality management support; marketing support; intellectual property registration support and management; pre-commercialisation studies; skills development; information workshops and seminars.
Development Finance The Development Finance sub-unit manages the ECDC’s business finance product offering and assists enterprises gain access to finance.
Through both short-term and long-term products, the ECDC has set itself apart as the financial service provider of choice for initiatives that bring a meaningful development impact. With an understanding of the historical lack of access of small-to-medium enterprises to finance, the ECDC uses adequate management capacity and business viability as key lending criteria.
ECDC Access, the category name for short-term finance, offers products geared towards facilitating efficient cash flow management. “Access” denotes the values of flexibility, convenience, efficiency and transparency. ECDC Future, the category name for long-term finance, offers long-term debt finance vehicles, one covering commercial property and another dealing with equity finance.
The ECDC’s business finance products are best suited to applications that facilitate job creation and/or retention, economic empowerment, value addition, rural/township development and increased export income. Any greenfield initiative that leads to expansion and rehabilitation will be eligible for application for finance.
The ECDC aims to provide efficient client service for the entire duration of the contract term. Monthly account management and quarterly report-back visits will gauge the health of the business. ■
ECDC contact details Address: 1 Moore Street, Quigney, East London Tel: +27 43 704 5604 Email: info@ecdc.co.za Website: www.ecdc.co.za
Eastern Cape Provincial Government
A guide to the Eastern Cape’s provincial government departments. Visit www.ecprov.gov.za
Office of the Premier
Premier: Oscar Mabuyane Office of the Premier Building, Independence Avenue, Bhisho 5605 Tel: +27 40 609 6644 | Fax: +27 86 681 9493 Website: www.ecprov.gov.za
Department of Cooperative Governance and Traditional Affairs
MEC: Xolile Nqata Tyamzashe Bldg, Room 2124, 2nd Flr, Bhisho 5605 Tel: +27 40 609 5656/8 | Fax: +27 40 639 2163 Website: www.eccogta.gov.za
MEC: Mlungisi Mvoko 2nd Flr, Beacon Hill, Hockley Cl, King Williams Town 5600 Tel: +27 43 605 7000 | Fax: +27 43 605 7303 Website: www.dedea.gov.za
Department of Education
MEC: Fundile Gade Steve Tshwete Education Bldg, Zwelitsha Zone 6, Zwelitsha 5608 Tel: +27 40 608 4200 | Fax: +27 40 608 4040 Website: www.ecdoe.gov.za
Department of Health
Department of Human Settlements
MEC: Nonceba Kontsiwe 31-33 Phillip Frame Rd, Waverly Park, Chiselhurst, East London 5247 Tel: +27 43 711 9901/2/3 | Fax: +27 43 711 9797 Website: www.ecdhs.gov.za
Department of Public Works and Infrastructure
MEC: Babalo Madikizela 5 Qasana Bldg, Independence Avenue, Bhisho 5605 Tel: 0800 864 951 | Website: www.ecdpw.gov.za
Department of Rural Development and Agrarian Reform
Department of Safety and Liaison
MEC: Weziwe Tikana Gxothiwe Arches Building 7, Taylor St, King Williams Town 5601 Tel: +27 43 605 6800 | Fax: 086 558 0224 Website: www.ecprov.gov.za
Department of Social Development
MEC: Siphokazi Mani-Lusithi Phalo Ave, 5th Flr, Dukumbana Building, Bisho 5605 Tel: +27 43 605 5419 | Fax: +27 43 605 5000 Website: www.ecdsd.gov.za
Department of Sports, Recreation, Arts and Culture
MEC: Fezeka Nkomonye 5 Eales St, King Williams Town 5600 Tel: +27 43 604 4101 | Website: www.ecsrac.gov.za
Department of Transport
MEC: Weziwe Tikana Gxothiwe Flemming St, Schornville, King Williams Town 5601 Tel: +27 43 604 7400 | Fax: 086 298 5598 Website: www.ectransport.gov.za
Provincial Treasury
MEC: Mlungisi Mvoko Provincial Treasury, Tyamzashe Bldg, Bhisho 5605 Tel: +27 40 353 9944 | Fax: +27 40 101 0731 Website: www.ectreasury.gov.za
Eastern Cape Local Government
A guide to the Eastern Cape’s metropolitan, district and local municipalities.
ALFRED NZO DISTRICT MUNICIPALITY
Erf 1400, Ntsizwa Street, Mount Ayliff Tel: +27 39 254 5000 | Fax: +27 39 254 0343 Email: info@andm.gov.za Website: www.andm.gov.za
Matatiele Local Municipality
Ntabankulu Local Municipality
Umzimvubu Local Municipality
Winnie Madikizela-Mandela Local Municipality
AMATHOLE DISTRICT MUNICIPALITY
3-33 Phillip Frame Road, Chiselhurst, Cambridge, East London Tel: +27 43 701 4000 | Fax: +27 43 742 0337 Email: info@amathole.gov.za Website: www.amathole.gov.za
Mnquma Local Municipality
Ngqushwa Local Municipality
Raymond Mhlaba Local Municipality
BUFFALO CITY METROPOLITAN MUNICIPALITY
117 Oxford Street, Cnr North and Oxford Streets, Trust Centre, East London Tel: +27 43 705 2000 | Fax: +27 43 743 1688 Website: www.buffalocity.gov.za
CHRIS HANI DISTRICT MUNICIPALITY
15 Bells Road, Komani Tel: +27 45 808 4600 | Fax: +27 45 838 1556 Website: www.chrishanidm.gov.za
Emalahleni Local Municipality
Engcobo Local Municipality
Amahlathi Local Municipality
Great Kei Local Municipality
Mbashe Local Municipality
Enoch Mgijima Local Municipality
Intsika Yethu Local Municipality
JOE GQABI DISTRICT MUNICIPALITY
Cnr Cole and Graham Streets, Barkly East Tel: +27 45 979 3000 Fax: +27 45 971 0251 Website: www.jgdm.gov.za
Elundini Local Municipality
Senqu Local Municipality
Walter Sisulu Local Municipality
NELSON MANDELA BAY METROPOLITAN MUNICIPALITY
City Hall, Vuyisile Mini Square, Govan Mbeki Avenue, Nelson Mandela Bay Tel: +27 41 506 3208/9 Fax: +27 41 506 2422 Website: www.nelsonmandelabay.gov.za
OR TAMBO DISTRICT MUNICIPALITY
OR Tambo House, Nelson Mandela Drive, Myezo Park, Mthatha Tel: +27 47 501 6400 Fax: +27 47 532 6518 Website: www.ortambodm.gov.za
Ingquza Hill Local Municipality
Mhlontlo Local Municipality
Nyandeni Local Municipality
Port St Johns Local Municipality
SARAH BAARTMAN DISTRICT MUNICIPALITY
32 Govan Mbeki Avenue, Port Elizabeth Tel: +27 41 508 7111 Fax: +27 41 508 7000 Website: www.sarahbaartman.co.za
Blue Crane Route Local Municipality
Dr Beyers Naude Local Municipality
Kouga Local Municipality
Kou-Kamma Local Municipality
Makana Local Municipality
Ndlambe Local Municipality
Sundays River Valley Local Municipality
Coca-Cola Beverages South Africa is creating employment and stimulating economic growth
A number of small business owners in Mdantsane in the Eastern Cape are ready to take their ventures to the next level after they were selected to be part of the Bizniz in a Box (BiB) initiative which seeks to empower township and rural entrepreneurs as part of building a more inclusive economy.
Entrepreneurs in and around the Mdantsane taxi rank have taken ownership of their containers which have been fully customised and fitted out with kitchens. The business owners also received tables, coolers and start-up stock, as well as dust coats, aprons and Covid-19 PPE.
Coca-Cola Beverages South Africa (CCBSA) sees BiB as the ideal platform to support emerging and small businesses, particularly those run by young people and women. The BiB programme further offers the opportunity to learn business skills.
Bizniz in a Box envisages an ecosystem of viable micro-businesses offering complementary products and services in township communities, alongside the local spaza shop, covering a range of services, from business centres providing Internet access, car washes, fast-food shops or mini bakeries.
Critical to growth
Sakhumzi Ncapayi, the CCBSA District Manager, says, “We understand how critical the SMME sector is to our economic revival following the Covid-19 pandemic, and the important role small businesses will play in the future growth of South Africa and Africa.”
Bizniz in a Box was first piloted in 2015 in the Free State. By the end of 2020, through Bizniz in a Box, CCBSA and its partners had trained 749 young entrepreneurs and helped 224 of them to take their businesses to the next level, creating 185 additional jobs by employing shop assistants.
Beneficiary Siyamthanda Soxusa, 26, says of her fast foods take-away business, “Bizniz in a Box means so much to me because before I was working in a small container. I bought stock every day and ended with minimal profit. With this initiative, everything is convenient and I can see the growth in my business.”
Buffalo City Metro spokesperson Samkelo Ngwenya said at the launch, “We are delighted that the Bizniz in a Box programme has reached Mdantsane and we believe that this empowerment initiative will lead to the transformation of not only this area, but the lives of our people.”
Top left: Siyamthanda Soxusa is seeing growth in her business. Bottom left: Anda Mabamba, 35, in front of fast food outlet Zoe’s Kitchen, which is now run as part of Bizniz in a Box. Right : Nolubabalo Katshwa, 50, is one of the beneficiaries of CCBSA’s Bizniz in a Box programme.