New banks are changing the face of the sector

Development finance and SMME support

Support is available for entrepreneurs.

Asmall business can become a substantial business quite quickly with the right support. Programmes such as the Black Umbrellas offer different levels of support, from early advice about business plans through office support to mentoring.

Civtech Engineers, a Richards Bay consultancy, has grown its revenue and staffing levels as a result of being on the full incubation programme of Black Umbrellas.

Agriculture is the focus of a wide-ranging initiative in the Ulundi district. A grouping called ULUMA has been formed which aims to help farmers, SMMEs and co-operatives to benefit in a holistic way from the produce they farm. The Zululand District Farmers Association, several other NGOs and Standard Bank are working together with the likes of Mangosuthu University of Technology (MUT) and the Innovation and Technology Business Incubator (Invotech) to expose farmers to new issues and techniques.

Operation Vula is a provincial government initiative to ensure that co-operatives and small businesses get a leg-up into the formal economy through state-led infrastructure programmes that assist them, and through procurement policies that favour them.

The Coastal KZN TVET College has been training members of cooperatives and people working in small, medium and micro-enterprises (SMMEs) in the skills that will help them do well in business.

The Small Enterprise Development Agency (Seda) is active in supporting entrepreneurs. Seda gives non-financial support through training, assistance with filling in forms, marketing and creating business plans.

In KwaZulu-Natal, Seda runs 12 Incubators which either help new businesses get started or with the rehabilitation of existing enterprises.

ONLINE RESOURCES

KwaZulu-Natal Department of Economic Development and Tourism: www.kznedtea.gov.za National Department of Small Business Development: www.dsbd.gov.za Small Enterprise Development Agency: www.seda.co.za Small Enterprise Finance Agency: www.sefa.org.za

SECTOR INSIGHT

The Coastal KZN TVET College offers business skills training.

Three models are used: Technology Demonstration Centres (demon stration and training); Technology Incubators (where the focus is re habilitation); and Hybrid Centres, which combine elements of the other two models. The KwaZuluNatal incubators include ICT and construction (three centres each), furniture and hi-tech (two each), chemicals and essential oils.

The IDC provides finance across a range of sectors from agriculture to tourism. It has holdings in several companies with a presence in KwaZulu-Natal: 42.6% in Hans Merensky (Pty) Ltd, a plantation and timber mill operator; 100% in Prilla 2000, a cotton-milling operation; and 85% in Foskor, which has a phosphoric acid plant in Richards Bay.

All of the major banks have SMME offerings. Nedbank has an enterprise-development product that supports businesses with a turnover up to R35-million with at least 25% black ownership.

Toyota South Africa Motors is funding the newly created Toyota Empowerment Trust (TET) to the tune of R42-million.

Selfmed Medical Scheme

Christo Becker

Christo Becker, the Principal Officer at Selfmed Medical Scheme, outlines the advantages of a self-administered scheme.

How did Selfmed begin and how has it evolved?

The Scheme initially formed part of the Sanlam Life Insurance stable, created in 1965 and formally registered in 1972. This makes Selfmed one of the most experienced medical aid schemes in the industry. At Selfmed we have a handson approach, and this resulted in our taking control of our own Client Services Centre, or Excellence Centre in 2006. We thereafter progressed to taking over the full administration function in 2010; also recently bringing our Managed Healthcare inhouse.

What is your market?

Historically membership comprised individuals and their families. The introduction of the Selfnet options in 2015 and 2016 allowed us to reach a younger audience. This was also the opportunity to branch out into corporate marketing, offering membership to blue-collar employees. We have seen great success in this area.

BIOGRAPHY

Christo started his 21-year career in healthcare as a paramedic in Fire and Disaster Management Services. In 2001 he completed an MBA with the intention of moving his career towards hospital management. He has worked as hospital manager in several private facilities. His passion for people and strategy has ensured that the hospitals he has managed have grown rapidly while focusing on sustainability. With selfmotivation and a commitment to continual improvement, Christo implements positive changemanagement.

Is there flexibility for clients?

The scheme currently has five products: Selfmed 80%, Med Elite, Selfsure, Med XXI, and Selfnet and Selfnet Essential. Each product is designed specifically for a life stage, as the needs of a member changes. As the person advances in life and starts a family they will move towards the Med XXI or Selfsure options, for example, which have a wider range of benefits relevant to a young family.

How is Selfmed handling ever-rising costs?

The biggest challenge facing the healthcare industry is the significant rise in healthcare costs, with healthcare inflation exceeding general inflation. This compels us to proactively introduce mechanisms to manage these costs. Selfmed is applying machine learning to the claims database to draw a more accurate picture of a member’s specific needs. The information can then be used to engage members on an individual basis – if we can intervene early it is to the benefit of all parties.

How does Selfmed Medical Scheme differentiate from its competitors?

In a traditional medical aid/administrator environment all administered functions rest with an administrator. As such, a medical aid would be fully dependent on its outsourced administrator to inform it of any issues relating to its members. Being fully self-administered allows Selfmed to take total ownership of all its member interactions and address any administrative problems or complaints immediately. We do not have an electronic routing system; you speak to an individual. This personalised hands-on approach is fundamental to our model of building a credible member experience.