Development finance and SMME support

Big companies are using their supply chains to support small business.

SECTOR INSIGHTS

The University of Limpopo has started a Seed Fund for students with business ideas.

Chairman of Zizwe Opencast Mining, Howard Maimela, Kgosi Manotshe Ramokoka and senior general manager of Amandelbult Complex, Patrick Morutlwa.

The provincial government, through its departments and agencies, has since 2014 given financial support amounting to more than R51-million to 1 200 co-operatives. In the same period, R193-million was provided to SMMEs.

In partnership with the Small Enterprise Development Agency (Seda), the provincial government has established a construction incubation centre at Steelpoort in Sekhukhune to train emerging contractors. A jewellery incubation centre in Polokwane trains young jewellery makers.

Local, provincial and national government have all committed to spending more of their budgets through small businesses and cooperatives. The Limpopo Provincial Government reports that in 2017, government departments paid invoices within 30 days 96% of the time.

The University of Limpopo has launched the Limpopo Student Seed Fund which aims to promote social innovation among students. Sponsored by the SAB Foundation, the new fund will see R400 000 distributed to students whose businesses tackle social issues such as hunger, violence and unemployment.

A concerted strategy to strengthen and develop the economies of the townships and villages of Limpopo has been launched. Spearheaded by the Limpopo Economic Development Agency (LEDA), a unit of the Limpopo Department of Economic Development, Environment and Tourism (LEDET), the plan has eight focus areas which include making licences and permits easier to obtain, that government departments buy from small, medium and microenterprises (SMMEs), indigenous products are supported and protected, and encouraging small businesses to support one another through the clustering approach.

The revitalisation of the Seshego and the Nkowankowa Industrial Parks is intended to boost the local economy, with SMMEs expected to benefit the most. The National Department of Trade and Industry has committed R21-million to revitalising the Seshego Industrial Park which will provide trading and storage space for businesses of all sizes.

L E D E T h a s s i g n e d memorandums of understanding with the South African Bureau of Standards (SABS) and with

Productivity South Africa. These agreements aim to help SMMEs within the province become more competitive. Ten SMMEs and 10 co-operatives are currently being assisted. LEDA intends establishing a bulk-buying cooperative. The plan is to enlist more than 200 members whose collective buying power will give them an advantage in purchasing stock.

The National Department of Small Business Development (DSBD) has several programmes to assist SMMEs and co-operatives. These include: • The Black Business Supplier Development Programme, a costsharing grant to promote competitiveness • The Co-operative Incentive Scheme, a 100% grant.

The National Gazelles is a national SMME accelerator jointly funded by Seda and the DSBD. The aim is to identify and support SMMEs with growth potential across priority sectors aligned with the National Development Plan and Seda’s SMME strategy.

Private sector

Large companies in Limpopo are supporting new business ventures by allocating service functions to local businesses and through training and mentoring.

Anglo American Platinum has extended the contract with Zizwe Batlase for the provision of strip-mining services at its Amandelbult Complex. Zizwe Batlase is 51% owned by the local community of Baphalane through the Baphalane Community Trust, named Batlase. Since 2016, Zizwe Batlase has been providing employment, SMME development, infrastructure development and business opportunities to local and small businesses in the community.

The Implats Group spent 36% of its procurement budget with Limpopo companies in 2017/18. The Marula platinum mine alone spent R54-million on goods and services in the Sekhukhune District where the mine is located on the eastern limb of the Bushveld Complex.

De Beers Consolidated Mines plays a big role in the economy of northern Limpopo through its Venetia Mine. The company has

ONLINE RESOURCES

Industrial Development Corporation: www.idc.co.za Limpopo Department of Economic Development, Environment and Tourism: www.ledet.gov.za National Gazelles: www.nationalgazelles.org.za Shanduka Black Umbrellas: www.shandukablackumbrellas.org Small Enterprise Development Agency: www.seda.org.za Zimele: www.anglozimele.co.za launched two business incubators in local municipalities, Blouberg and Musina. The De Beers Zimele Venetia Mine Business Hub has created more than 495 jobs since it was established to support entrepreneurs through low-interest loans, mentorship, coaching and skills development. Local procurement has given chances to 15 local companies, in fields such as road maintenance, the canteen, small civils work and the supply of tyres and batteries.

More than 20 small businesses are registered as clients with the Shanduka Black Umbrella incubator in Lephalale. The sectors in which these companies operate range from plant hire and construction to training and marketing. Individual mentors for these enterprises are drawn from the local TVET college, the Limpopo Economic Development Agency and private businesses.

The major banks all have SMME offerings. Standard Bank runs a Community Investment Fund and Nedbank offers an enterprise development product for businesses with turnovers up to R35-million.

The Seda Technology Programme (STP) is a key method of helping businesses scale up to the point where their products pass muster in the commercial world. A jam manufacturer may need assistance in getting the necessary health certificates before being able to sell to a big retailer, for example. Nachem Chemical, a company making cleaning chemicals in the Vhembe District Municipality, is an example of a company that has used the STP to good effect.

Koenie Slabbert

BIOGRAPHY

Koenie Slabbert began his career as an apprentice in tool, jig and die-making. Promotion to Supervisor inspired him to sign up for training at his own expense. Courses at the Production Management Institute of South Africa led to a Higher Diploma in Production Management and a BSc Honours through the PMI/ University of Hertfordshire. A Master’s Degree in Operations Management followed. Before joining Seda, Koenie was an industrial engineer at Limac. He has been Provincial Manager from June 2007.

Technology Incubation Centres are spurring growth

Koenie Slabbert details how the Small Enterprise Development Agency in Limpopo is helping small businesses.

What is the key business proposition of Seda Limpopo?

The Small Enterprise Development Agency (Seda) is an agency of the Department of Small Business Development (DSBD) which provides non-financial support to small enterprises and co-operatives. Seda has by far the biggest network of offices in the country. Limpopo has five branches, one in each municipal districts and three co-location points. Seda has presence in some townships and rural areas and has programmes targeting youth and women from all sectors.

Seda Limpopo supports three Technology Incubation Centres affording start-ups a well-equipped and protected environment in which to develop and grow for a period of three years. Incubation has been proven to reduce the failure rate in the first few years of small enterprises’ cycle.

Seda interventions involve exploring possible new revenue streams, improving competitiveness and productivity in the business.

Are there particular economic sectors in which you specialise?

Seda assists all types of business and cuts across a number of sectors that are key to job creation. These include: agriculture and agroprocessing, manufacturing, engineering, renewable energy and services (ICT and tourism). Seda has also prioritised small enterprises and co-operatives owned by youth, women, people with disabilities and people in townships and rural areas.

What are the challenges and opportunities for small businesses in Limpopo?

One of the challenges is access to markets; another is access to funding. There are great opportunities in exporting of primary produce and value-adding through agro-processing initiatives. Manufacturing and technology and ICT initiatives are other areas of potential.

Do the branches deal with different kinds of business support depending on where they are located?

It is very important for Seda to ensure that its branches provide a series of packaged products and services to assist businesses in various phases of operation. The dynamics of the economic imperatives will differ from

region to region, but Seda has four phases of business development as offered to its clients:

Seda Business Talk provides practical answers and guidance to potential entrepreneurs wanting to start their own business and get it right the first time. Assistance includes: business advice and information; small enterprise training and seminars; business registration.

Seda Business Start provides businesses with instruments and techniques to plan their operations for a better chance of success. Focus is placed on: business planning counselling and support; business incubation; facilitation of access to finance; basic business skills and training; introduction to co-operatives course.

Seda Business Build focusses on clients who want to sustain and strengthen their businesses. Assistance provided: technical support; networking and business linkages; capacity-building systems and mentorship; tender advice/procurement; export orientation; technology transfer; starting and managing a co-operative.

Seda Business Grow focusses on clients who wants to grow their business and expand nationally and internationally. Assistance provided: export development; business systems development; co-operative support; growth strategies; technology transfer.

What are Seda’s key programmes?

The Export Development Programme develops export-ready small enterprises that are globally competitive and able to grow markets The Seda Technology Programme seeks to stimulate economic growth and development through technology transfer, increasing the access to and use of technologies and offering technical support The Co-operatives and Community Public Private Partnership Programme promotes the establishment and growth of viable co-operatives and collectively-owned enterprises The EMPRETEC Programme is an integrated capacity-building programme of UNCTAD targeting SMEs and entrepreneurial skills.

What is the Seda Technology Programme?

The Seda Technology Programme (STP) is a division of Seda which focuses on sustainable enterprise development through technology business incubation, monitoring, evaluation, improvement of service and product quality and standards, and technology-transfer-funding services and support.

STP seeks to make it easier for small enterprises to gain access to technology and technical support, while improving their sustainability and international competitiveness. STP is a programme of the Department of Small Business Development.

The Incubation Unit is designed to strengthen technology commercialisation and harness the entrepreneurship of the technology community in South Africa.

The Technology Transfer Unit promotes and facilitates the transfer of technology that is appropriate, effective and competitive to small enterprises. The unit offers the following services: grant funding for the acquisition of technology, such as equipment and machinery, to facilitate technology transfer; improving access to technology information by small enterprises; improving access to technology-transfer funding through structured referrals to the funding institutions; linking inventors/universities or science councils with small enterprises or entrepreneurs with matching needs.

The key mandate of the Quality and Standards Unit is to ensure that small businesses have access to Quality Improvement Programmes that can give small enterprises a sound foundation to be competitive and sustainable. The unit offers: management systems development, implementation; product testing and product certification; product design and packaging; SMME management systems auditing.

Does Seda have programmes to assist women and youth in business?

We have capacity-building programmes focusing on women.

Small businesses thriving through Empretec programme

Seven years of success.

The Small Enterprise Development Agency has adopted Empretec, which is a capacity-building programme of the United Nations Conference on Trade and Development (UNCTAD).

The programme aims to promote entrepreneurship and to enhance productive capacity and international competitiveness of small and medium-sized enterprises (SMEs) of developing countries and economies in transition. The Empretec programme is designed to provide training, technical assistance and an institutional base for the formation, expansion and transformation of SMEs. The programme identifies promising entrepreneurs, provides them with training aimed at developing their entrepreneurial skills and understanding basic business procedures, assists them in the preparation of business plans and in obtaining finance for their business ventures, helps to arrange mutually beneficial connections with larger national and foreign companies, and makes available long-term support systems to facilitate the growth and internationalisation of their ventures. Empretec training sessions have been proven to have a positive impact over seven years. Data shows that the survival rate of SMEs of Empretec graduates is almost twice as high as that of nonEmpretecos, and that over 80% of participants reported a steady and efficient growth of their business as a result of participation in the programme.

Seda Limpopo has hosted 10 Empretec sessions so far and more training sessions will be rolledout.

Empretec promotes a methodology of behavioural change that helps entrepreneurs to put their ideas into action and helps fledging businesses to grow. Innovative, experiential and competency-based entrepreneurship training initiatives such as UNCTAD’s Empretec programme are key components of a dynamic and sustainable entrepreneurship ecosystem.

As Seda Limpopo continues to roll out the programme in all local municipalities in the province, the programme also benefits from the support of many different strategic partners, including De Beers Venetia Mine and the National Department of Tourism. Other local donors and partners are invited to form part of this opportunity which yields tangible impact on the lives, businesses and communities of entrepreneurs.

Provincial Office

Koenie Slabbert - Provincial Manager Seda Limpopo Provincial Mopani Branch Tel: +27 15 287 2940 Office (located in Tzaneen) Fax: +27 15 297 4022 Email: kslabbert@seda.org.za Mr Koenie Slabbert: Provincial Ms Maseje Nchabeleng: Branch 2nd Floor Suite 6, Maneo Building, 73 Biccard Street, Polokwane 0700 Manager Manager Postnet Suite 32 Private Bag Tel: +27 15 287 2940 X 9307 Polokwane 0700 Tel: +27 15 306 6400

Fax: +27 15 297 4022 Fax: +27 15 307 2233 Seda Vhembe Branch Email: kslabbert@seda.org.za Email: Mr Marcus Mukumela - Branch Manager Physical address: 2nd Floor mnchabeleng@seda.org.za Tel: +27 15 960 8700 Fax: 086 634 8964 Email: mmukumela@seda.org.za Nictus Building 68 Hans van Rensburg Street Physical address: 2nd Floor ABSA Building Old Mutual Building, Old Group Scheme Offices, Mphephu Road, Thohoyandou 7950 Polokwane 13 Danie Joubert Street 0699 Tzaneen Seda Capricorn Branch 0850 Mr Peter Maredi - Branch Manager Capricorn Branch Tel: +27 15 290 8720 (located in Polokwane) Waterberg Branch Fax: +27 15 290 8736 Mr. Peter Maredi: Branch Manager (located in Mokopane) Email: pmaredi@seda.org.za 1st Floor Pharmarama Building, 68 Hans van Rensburg Street, Polokwane 0699 Tel: +27 15 290 8720 Fax: +27 15 290 8736 Mr Steve Botha: Branch Manager Tel: +27 15 492 9600 Seda Waterberg Branch Email: pmaredi@seda.org.za Fax: +27 15 491 7361 Mr Steve Botha - Branch Manager Physical address: 1st Floor Email: sbotha@seda.org.za Tel: +27 15 492 9600 Nictus Building Physical address: Old Nedbank Fax: +27 15 491 7361 68 Hans van Rensburg Street Building Email: sbotha@seda.org.za Polokwane 40 Retief Street Old Nedbank Building, 40 Retief Street, Mokopane 0699 Mokopane Seda Mopani Branch Martin Rafferty - Acting Branch Manager Tel: +27 15 306 6400 Fax: +27 15 307 2233 Vhembe Branch (located in Thohoyandou) Mr Marcus Mukumela: Branch 0600 Sekhukhune Branch (located in Groblersdal) Email: mrafferty@seda.org.za Manager Mr Sabelo Ntshangase 27 Peace Street, 1st Floor, Prosperitas Building, Tzaneen 0850 Tel: +27 15 960 8700 Tel: +27 13 262 9430

Fax: +27 15 962 4285 Fax: +27 13 262 Seda Sekhukhune Branch Mr Sabelo Ntshangase - Branch Manager Tel: +27 13 262 9430 Email: mmukumela@seda.org.za Physical address: Bindulavhathu Email: sntshangase@seda.org.za Physical address: Email: sntshangase@seda.org.za Office Building Mutual Building Bareki Mall, Shop No. 20B, Cnr Chris Wild and 3rd Floor Van Riebeek Street, Groblersdal 0407 Shop 4 and Office 10, 12

Thohoyandou Hereford Street 0950 Groblersdal 0470

We have built a strong team in the province made up of 16 Business Advisors, two Regional Facilitators and five Information Officers who have the responsibility of making measurable differences in the businesses that they assist. This team of Business Advisors works closely with a team of carefully selected service providers who possesses expert knowledge in different functional areas of business and industry sectors.

Local business benefits from spirit of Chinese investments and technology exchanges

PMC is supporting progress and development through community initiatives.

BRICS describes the group of Brazil, Russia, India, China and South Africa working together to promote development. The Palabora Mining Company success story shows that amid cultural differences and global economic uncertainties, cooperation by companies from BRICS can create a favourable environment for growth, technology exchanges and the buiding of international cooperation in the spirit of BRICS. Before commissioning and construction of the new floatation plant at PMC, the executive managers and senior managers travelled to China for fact-finding and comparative analysis missions on floatation plants to be built at the site in Limpopo. As part of resource sharing, skills and technology transfer, the main Chinese contractor has subcontracted work to various South African companies.

Skills transfer

Palabora Mining Company’s smelter refurbishment project and construction of the floatation plant are being implemented in partnership with China’s Beijing General Research Institute of Mining and Metallurgy. In addition to technology transfer, BGRIMM has contractually committed to employ 90% of unskilled labour and 80% of the semi-skilled labour from the Phalaborwa area and transfer new skills to PC employees who work at the smelter. The aim is to empower employees to operate and maintain the refurbished smelter once it is completed.

Community development initiatives

Collaboration between Palabora Copper, the Chinese Consortium and BGRIMM does not only extend to tangibles, considerable investments and technology transfer opportunities, but is also benefitting the communities of Phalaborwa. Since 2013, the Chinese Consortium – through PC – has spent more than R186.5-million in socio-economic development initiatives in Phalaborwa. These include:

Enterprise and Supplier Development

Palabora Copper has implemented enterprise and supplier development programmes to empower Phalaborwa’s Small, Medium and Micro Enterprises (SMMEs) to so that they are able to grow and shine the economic candle of Phalaborwa beyond the life of PC.

Renovation of schools

Palabora Copper has renovated Block C of Matome Malatjie High in Maseke Village and painted Lepato High School in Makhushane to ensure that pupils study in a conducive environment.

Bus shelters

Palabora Copper has constructed 19 bus shelters around the Ba-Phalaborwa Municipal area to ensure that bus users wait for busses in the shade, considering the heat in Phalaborwa.

Instilling the love of sport

Palabora Copper understands the positive effect of sports on youth. As a result, Palabora Copper supports township sporting events and has hosted several soccer tournaments to instil the love of sports in the youth.

Construction and rehabilitation of roads

Palabora Copper believes that rehabilitation and construction of roads signifies the company’s seriousness about socio-economic development. Roads are an essential part of human endeavour, a symbol of progress and development. In collaboration with the BaPhalaborwa Municipality and other strategic stakeholders, PC established a road rehabilitation project which involves tarring of roads and streets in Namakgale, the biggest township in Phalaborwa. To date, Palabora Copper has collaborated with various strategic stakeholders to rehabilitate the Ack son Malatji, Zakes Ngwasheng and Maphutha Malatji roads. The amount spent on the rehabilitation of these roads is over R44-million.

Turning dreams into lasting realities

Zimele improves the sustainability of SMEs.

Zimele, which means “stand on one’s own feet” was introduced to local communities near mines to bring about sustainable black economic empowerment through the crea tion and support of small, medium and micro-enterprises (SMMEs). In 2017, De Beers Zimele changed its strategic focus from being a funding initiative to one that targets capacity-building and improving the sustainability of SMMEs.

Over the last three years, De Beers Zimele at Venetia Mine has made huge strides in supporting and developing sustainable enterprises though the Enterprise and Supplier Development programmes. Measures were introduced to make available procurement opportunities from the mine to local businesses.

Enterprise Development 52 SMEs have enrolled on an SME incubation programme with the focus on operational and financial management and marketing. Through partnership with the Small Enterprise Development Agency (Seda) more than 150 SMEs from Musina and Blouberg benefitted from business courses. The relationship with the National Youth Development Agency (NYDA) resulted in five local youth-owned businesses gaining access to equipment worth R50 000. 27 local businesses employing more than 84 people were supported through Enterprise Development Programmes. AWOME (Accelerated Women Owned Micro Enterprises) was launched in partnership with the UN Women organisation which aims to reach 500 women.

Local procurement and supplier development There are now 34 locally owned companies doing business with Venetia Mine and they employ in excess of 340 people. The Bussing Empowerment transac tion led to community members now owning 40% of each of the newly established companies called Hope Diamond Transport and Millennium Diamond Transport. They employ more than 120 people.

Chibadura Trading was appointed as the supplier for Venetia Mine LDV tyres, EMV rims and LDV batteries. Strategic partners Bridgestone and Global Wheel are providing training.

Aucor Limpopo was established in partnership with the biggest auction company in Africa. In 2018, Aucor opened its doors in Bochum. Two locally owned construction companies were appointed to do construction on the Venetia Underground Project.

De Beers Group is committed on the journey of “turning diamond dreams into a lasting reality” for the communities in which it operates.

New crèche brings joy

Madimbo community receives new facility from Venetia.

On Friday, 26 July 2019, De Beers Venetia Mine handed over the keys to the newly-built community crèche in the small village of Madimbo.

The project was undertaken in partnership with Basil Reed, with the core focus of providing adequate infrastructure to support childhood development.

The children have now moved from an old fourroomed house into a big, bright, modern, fullyequipped building, which is kitted out with a variety of educational toys and learning resources. Catering for 126 children between the ages of two and five, the crèche is also furnished with small plastic tables and chairs.

Run by principal Precious Mahada, the crèche strives to educate preschoolers despite a lack of resources. Mahada said that she could not believe that the facility is now theirs to operate in.

“As you can see, there are no playgrounds for our children in our community. Many parents cannot afford to buy toys for their children, yet toys can play a big role in a child’s development. This new crèche will offer them that opportunity, all thanks to thanks Venetia Mine and their partnering contractor Basil Reed. Today, I am completely overjoyed and speechless,” she said.

The new facility is a much safer environment in which to play and learn. The upgrade is allencompassing, with everything from the kitchen to the ablution facilities and classroom being newly furnished.

Bonani Nyabane, Social Performance Specialist at Venetia Mine, said, “As De Beers, we are excited to hand over such a beautiful facility to the most important members of our society, our children. We are committed to the development of our children and will continue to work to ensure that there is an improvement in the level of education in communi ties in which we operate.”

For Mahada, what started as a small request for a few blankets and toys, turned into something much greater. “I don’t think there is anybody here who is not happy about this development. Thank you to Venetia; I promise to take care of this facility and will continue to raise these children, care and protect them,” she said.

The toddlers were visibly excited as they enjoyed their new play areas and toys.

Ikefree Projects looks to take its mission to a higher level

Patience Nqaba wants to grow the company and create jobs.

Ikefree Projects is a maintenance and services company that operates in the Musina area and is growing through its exposure to the De Beers Zimele programme and opportunities on offer through the Venetia Mine.

Patience Nqaba, the co-owner of the business, says that when Ikefree Projects was established about five years ago, it was with a desire to not only promote innovation in Musina, but to inspire confidence in the hearts of unemployed young people.

And when she agreed to kickstart the business, she admitted the plan was to keep going despite

having encountered difficulties, as she could clearly see how valuable the business would be to the community of Musina.

But rather than just keep going, Nqaba has committed to taking the business to a much higher level. And with the help of her life partner and co-owner, Ikemeleng Mokoena, she is driving Ikefree Projects in doing just that.

“We realised there was a gap and asked ourselves how we could effectively penetrate the market. It was not easy but when we came across the opportunity at Venetia Mine, things started

picking up. We applied for a tender, and have never looked back since,” she says.

The business of fers a full spectrum of civil maintenance services to residential and commercial p r o p e r t i e s , i n c l u d i n g building, painting, plumbing, carpentry and tiling. Nqaba says that Ikefree Projects currently employs 29 skilled and driven young people to help the company grow, and to allow them to improve their craft.

“A lot of young people from our community who are willing to do this kind of work do not have the necessary tertiary education but because they have the skills, we take them on. Right now, we have added four other young people to join us for a three-month basis, and even though it is just a short period, I think they will leave this place more skilled than before,” she said.

Together, Nqaba and Mokoena are working to make the business an important part of the ecosystem in Musina as they have also recently started a food delivery service in partnership with Nando’s.

“We recently signed a contract with Nando’s to deliver orders to their customers and are in the process of approaching other fast food franchises in and around Musina. This has been one of our greatest achievements as we continue to receive positive feedback from them,” she said.

In addition to this, Ikefree Projects signed a contract with Top 40 JSE company, Tiger Brands, to provide maintenance services to their property.

“It was purely by chance that we landed the contract. We conducted some research and realised they had no maintenance company. Thereafter, we pitched and presented our proposal, and they were highly impressed with our profile as we had listed Venetia Mine as one

of our clients. They then gave us a contract to renovate an office. As the saying goes, the rest is history,” says Nqaba.

With the help of the De Beers Zimele programme, the owners of Ikefree Projects are now equipped to run the business more efficiently than before.

“We are continuously trained in interpreting financial statements and budgeting, and we are shown how to create provision for unexpected expenses. We are also guided on how to apply for tenders and how to market the business better while complying with the mandatory regulations,” she says.

Like any business, Ikefree Projects has the broad goal to be a trusted and sustainable company in Musina. The business owners are actively laying a solid foundation that will enable it to do just that.

“The goal is to continue doing what we are doing but at an even larger scale. Yes, there will be challenges and equally, there will be opportunities. And thanks to the exposure Venetia Mine has given us, we – the small business that secured a contract with Tiger Brands – shall continue to move steadily forward,” she laughs.