Development finance and SMME support

Enterprise supplier development boosts local economies.

Moeding Transport has been supplying services to Glencore Ferroalloys’ Lion Smelter for some time. Over the years, the company has been able to expand its services and in 2023 it received an additional boost with the donation by Glencore of two 65-seater busses as part of its Enterprise Supplier Development (ESD) programme.

The transport company, which is based in Ngwaabe Village in Steelpoort, has been running transport services for Lion Smelter employees for more than a decade.

Large companies in Limpopo support new business ventures by allocating service functions to local businesses and through training and mentoring. All of the province’s big mining companies have significant budgets set aside for procurement from small businesses and work such as cleaning and transport is routinely allocated to SMMEs.

In addition, incubation and training programmes are available. De Beers Venetia Mine and the Small Enterprise Development Agency run an Enterprise Coaching Programme, a 10-month line-up of coaching and mentorship. A recent course offered to 30 entrepreneurs resulted in an overall increase in turnover of R5.7-million for businesses in the programme and the creation of 100 new jobs.

The Provincial Government of Limpopo supports SMMEs. In 2022/23, a total of R4.4-million in loans were allocated to small enterprises and co-operatives. Government is working with a joint initiative of several mining houses, the Impact Catalyst, on a coordinated approach to enterprise development.

Other provincial government partnerships designed to support small business include the location of a satellite office, with the support of Exxaro, in the Lephalale area where the mining company runs a large coal mine. In addition, SMME incubator Black Umbrellas is another collaborator.

The Township and Rural Entrepreneurship Programme (TREP), a joint effort of the Provincial Government of Limpopo, the Small Enterprise Development Agency (Seda) and the National Department of Small Business Development (DSBD), assists small companies with compliance, business development services, access to markets and finance.

Online Resources

Industrial Development Corporation: www.idc.co.za

Shanduka Black Umbrellas: www.shandukablackumbrellas.org

Small Enterprise Development Agency: www.seda.org.za

Sector Insight

Among the target markets for TREP are bakeries, autobody repairs and mechanics and fruit and vegetable shops. In partnership with 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.

Seda also runs the Seda Technology Programme (STP) which helps 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. The National Youth Development Agency has allocated R10-million to support established and intended youth entrepreneurs in the province. ■