Development finance and SMME support

Companies are supporting training and start-ups.

SECTOR INSIGHT The African Development Bank is funding entrepreneurship.

Equipment purchased by Stenda Trading. Credit: Exxaro

The Gert Sibande Centre for Entrepreneurship in Evander hosts a Rapid Incubator in partnership with the Small Enterprise Development Agency (Seda). The aim is to promote and develop young entrepreneurs in the province.

The Incubator offers a variety of services, including mentorship and coaching, training, advice on business compliance, network and linkages as well as facilitating access to marketing and funding opportunities. Infrastructure support is available in terms of office space and boardroom, telephone and Internet connections and printing services.

The Centre was established in 2015 through a partnership between the Gert Sibande TVET College and National Department of Small Business Development (DSBD) and the University of Johannesburg.

The college has five other campuses across the Gert Sibande District Municipality.

A new national programme to boost employment has received a funding boost from the African Development Bank (AfDB). The dtic has received a R23.6-million grant to pursue four programmes, one of which is focussed on encouraging enterprise development in technical and vocational education and training (TVET) colleges.

The hope is that graduates will leave colleges with qualifications and fully-functioning businesses that can start employing staff. The college’s workshops will be open to local entrepreneurs to develop and produce products that can be sold.

Entrepreneurship Development is one of the subjects on offer at 90 Youth Development Centres which are being established throughout Mpumalanga. Other courses include accredited training in computer skills and life skills, with workshops on job preparedness and career guidance. The centres are part of Mpumalanga’s response to the Presidential Youth Employment Intervention Programme.

The Mpumalanga Economic Growth Agency (MEGA) is the implementing agent of the provincial government’s SMME support policy. An agreement has been signed by Standard Bank and MEGA to launch an SME Fund with a capitalisation of R500-million. MEGA has also overseen the rehabilitation of industrial premises in former homelands and formed partnerships with financial institutions for funding.

Examples of township businesses supported by the Department of Economic Development and Tourism (DEDET) are an agreement with Sumitomo Rubber SA to promote local tyre enterprises and financial support for the commissioning of a sanitary towel plant by the Ntirhisano Sanitary Worker Cooperative in Bushbuckridge (and support for business development and access to market).

MTN drives diversity and transformation

Previously disadvantaged individuals are taking charge of their own stores.

Simphiwe Mdlalose

MTN’s transformation and optimisation of its retail store footprint is creating jobs, growth and driving gender diversity. In a major development, more and more previously disadvantaged individuals are now the proud owner-operators of stores nationwide.

MTN continues the journey of repositioning and creating more opportunities to transform its retail channel. “Parallel to this, we have selected new dealers who represent the aspirations of this transformation and have proven themselves to be astute owner-operators who understand our brand and are committed to the business values we hold,” says Kagiso Moncho, General Manager, MTN Limpopo and Mpumalanga.

In Limpopo, Simphiwe Mdlalose joins a group who recently made the move to being fully-fledged MTN store owners. The appointment follows a successful application through MTN’s transformative Branded Retail Channel programme, which was initiated in 2019. Mdlalose will take over two stores based in Polokwane.

Owner, self-starter, leader and marketer of note, Simphiwe is a familiar face and an admired and respected entrepreneur, author, inspirational speaker and strategist who has been in the media, marketing and communications space for over 23 years.

Over the years he has kept an eye on mobile and digital telephony and identified gaps in key areas. These include government sales, business to business and strategic partnerships within the industry. These gaps were tackled by his company, Conecta Mobile.

MTN’s phased transformation strategy is intended to transform the channel by driving BBBEE in the telecommunications industry. This is to be done by lowering the barrier to entry and placing more stores in the hands of black owners and women, thus repositioning MTN’s portfolio and delivering on the goals of national government.

“Economic opportunity and digital transformation are key to our belief that everyone deserves the benefits of the modern, connected life and our retail store transformation programme achieves this by not only driving inclusion, but also enhancing and regionalising our national store footprint,” explains Kagiso.

“MTN looks forward to working with Simphiwe Mdlalose in support of his ventures and is encouraged to continue building on this ownership model that speaks to the demographics of our country and bettering lives while providing an exciting employee value proposition,” concludes Kagiso.

Research done by Seda shows that a high percentage of SMMEs in Mpumalanga are in the trade and accommodation sector. Whereas the national figure is about 43%, in Mpumalanga it is closer to 50%.

Seda is a subsidiary of the National Department of Small Business Development. Seda is not a financial agency, focussing rather on training and administrative support, although the agency will help SMMEs get in touch with financial bodies.

Seda supports several incubators in the province: Furntech, furniture manufacturing, White River; Mobile Agro-Skills Development & Training (MASDT), agricultural training, Nelspruit; Mpumalanga Stainless Initiative (MSI), stainlesssteel processing, Middelburg (with Columbus Stainless); Timbali floriculture, Nelspruit; Ehlanzeni TVET College Rapid Incubator Renewable Technologies, Nelspruit.

Private companies

The Mpumalanga Stainless Initiative helps SMMEs develop products. Credit: MSI

In her 2021 State of the Province address, Premier Refilwe Mtshweni-Tsipane paid tribute to private companies for providing employment opportunities to local people and for continuing to support small and emerging businesses. Bursary programmes and training programmes were also acknowledged. The companies mentioned were Sasol, Exxaro, Eskom, Sappi, Columbus Stainless, South32, Samancor, RCL foods, Mondi, Safcol, Glencore, Standard Bank, Absa Bank, Nedbank and First National Bank.

At Exxaro’s Matla Mine, a black– and woman-owned business has grown in leaps and bounds with support from the mining company’s Enterprise and Supplier Development unit. Stenda Trading won contracts to do underground civil and underground cleaning services at the mine. This included building containment and explosion-proof walls, installing black brattices, reinforced brattices and air crossings, building refuge bays, concrete work and installing specialised doors. Exxaro extended a R9.2-million interestfree loan to the enterprise to purchase equipment, vehicles and a mobile office.

Sappi’s long-term Ngodwana mill project will spend more than R600-million on procuring goods and supplies from broad-basedblack-economic-empowered companies, of which R51-million will go to SMMEs.

Other companies supporting SMMEs through their buying chain include Woolworths and Anglo American. Woolworths funds TechnoServe to ensure that small tomato growers can grow produce that will meet the demanding standards of the retailer, and to help them expand production.

Anglo American’s Zimele runs four enterprise development and investment funds. Zimele runs hubs related to the supply chains of platinum, thermal coal and, with Mondi, forestry. ■

ONLINE RESOURCES

Gert Sibande TVET College: www.gscollege.edu.za Mpumalanga Economic Growth Agency: www.mega.gov.za Mpumalanga Stainless Initiative: www.mpstainless.co.za Small Enterprise Development Agency: www.seda.org.za

Kruger Lowveld Chamber of Business and Tourism

The voice of business in Ehlanzeni.

As the official representative body of business and tourism in the Kruger Lowveld (Ehlanzeni District), our main mandates are to promote the region as a tourism and investment destination, to provide a diverse suite of networking and marketing opportunities for our members, and to represent and speak on behalf of the business and tourism community of our area. We do this by building and maintaining meaningful relationships with all spheres of government as well as like-minded organisations, and by acting as liaison between these entities and the business community. KLCBT’s president is Ms Sandra Jacobs (pictured).

Area of operation

The Kruger Lowveld covers the Ehlanzeni District of Mpumalanga, including the following local municipalities: City of Mbombela, Thaba Chweu, Nkomazi and Bushbuckridge, as well as the southern part of Kruger National Park and the surrounding private nature reserves.

Member benefits

Listing on website, Pay-to-Play participation in various marketing services and projects, weekly newsletter, invitations to all KLCBT events, advocacy and representations made by KLCBT on behalf of members, access to preferential arrangements negotiated by KLCBT with service providers, brochure display at Crossing Centre office, various sponsorship options, access to tender information. We are actively involved in the following advocacy campaigns:

Service delivery: Public participation in various forums where government engages with stakeholders regarding budgets, planning and legislation. Promote home-grown businesses through education processes, research, maintaining a database, lobbying for stricter regulations on large shopping chains, engaging large chains to buy local and to spend their CSI budgets locally.

Contact details

Physical address: KLCBT House, Crossing Centre, Nelspruit Postal address: Private Bag X 11326, Nelspruit 1200 Tel: +27 13 755 1988. Fax: +27 13 753 2986 Email: business@klcbt.co.za and tourism@klcbt.co.za Website: www.klcbt.co.za Sandra Jacobs

Local Economic Development: We are assisting with incubation in seven main corridors, mainly adding additional tourism products.

Anti-corruption: Several successful initiatives reduced roadside corruption.

Water: Bulk-water supply faces a future crisis and lobbying for the increase of storage capacity is beginning to show success.

Roads and public attractions: Require upgrades and investment.

Safety and security: A concern for all regions in SA. ■

Steel products company powers ahead after Seda boost

Mboshini Engineering has gained new markets and is making new products as a result of partnering with Seda.

Sbusiso Sibuyi started Mboshini Engineering Steel (Pty) Ltd in 2016 after the company he worked for in Lillydale closed its doors. The company belonged to his father and manufactured trailers, dumpers and burglar gates. Sbusiso bought the company from his father and hired him as a manager. With the skills he had acquired, he started manufacturing burglar doors and gates for the local community and the Kruger National Park.

When the demand for burglar doors and gates increased, Sbusiso expanded his product range to steel window frames, door frames, trailers, steel structures, bull bars, aluminium frames and palisades. Few businesses were offering these products at that time in the local community and neighbouring villages. The business has increased its business assets by buying a tipper truck and a tracker-loaderbackhoe (TLB).

Mboshini Engineering Steel operates from a warehouse in Lillydale in the Ehlanzeni District Municipality and employs three people (the owner included).

Challenges • Lack of funding to develop the business • No business plan to access finance • Lack of marketing tools • The business lacked adequate business management skills or systems

Interventions and solutions The client started working with Seda in September 2017 and the following interventions were commissioned: • Business management skills training • A bankable business plan was developed to enable the business to gain access to funding • Financial management training was facilitated by First National Bank • Seda facilitated the development of signage to advertise, promote and increase business visibility • Referral to ABSA Bank for funding • Advised to use digital marketing to market the company’s products and services • The client attended a five-day Empretec training course.

Seda’s interventions benefited the client in the following ways: • The business created one permanent job, leading to a staff complement of four and sustained three jobs. • Turnover increased by 55%. • The business secured sub-tenders from the

Department of Education. • Increase in client number and sales to such an extent that the company has had to open a business bank account and hire an accountant. • Submitted a business plan to ABSA Bank and received significant funding. The money was used to buy a TLB. • Accessed funding from the NYDA. • Received a sub-tender from the Bushbuckridge

Local Municipality for the leasing of a watertank truck.

Sbusiso Sibuyi says of the work done by Seda Mpumalanga in assisting him gain access to funding and to create the conditions for the growth of his business, “Seda is doing wonderful work in assisting even rural entrepreneurs.”

Provincial Office

Koenie Slabbert - Provincial ManagerSeda Limpopo Provincial Tel: +27 15 287 2940 Office Fax: +27 15 297 4022 Email: kslabbert@seda.org.za Mr Koenie Slabbert: Provincial 2nd Floor Suite 6, Maneo Building, 73 Biccard Street, Polokwane 0700Manager Postnet Suite 32 Private Bag XTel: +27 15 287 2940 9307 Polokwane 0700

Fax: +27 15 297 4022 Seda Vhembe BranchEmail: kslabbert@seda.org.za Mr Marcus Mukumela - Branch Manager Physical address: 2nd FloorTel: +27 15 960 8700 Fax: 086 634 8964 Email: mmukumela@seda.org.za Nictus Building 68 Hans van Rensburg Street Old Mutual Building, Old Group Scheme Offices, Mphephu Road, Thohoyandou 7950 Polokwane 0699

Seda Capricorn Branch

Mr Peter Maredi - Branch Manager Capricorn Branch Tel: +27 15 290 8720(located in Polokwane) Fax: +27 15 290 8736Mr. Peter Maredi: Branch ManagerEmail: 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 Seda Waterberg Branch Email: pmaredi@seda.org.za Mr Steve Botha - Branch Manager Physical address: 1st Floor Tel: +27 15 492 9600 Nictus Building Fax: +27 15 491 736168 Hans van Rensburg Street Email: sbotha@seda.org.za Polokwane Old Nedbank Building, 40 Retief Street, Mokopane 0699 Seda Mopani Branch Martin Rafferty - Acting Branch Manager Tel: +27 15 306 6400 Vhembe Branch (located in Thohoyandou) Fax: +27 15 307 2233 Mr Marcus Mukumela: Branch Email: mrafferty@seda.org.za Manager 27 Peace Street, 1st Floor, Prosperitas Building, Tzaneen 0850 Tel: +27 15 960 8700

Fax: +27 15 962 4285 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 Office Building Bareki Mall, Shop No. 20B, Cnr Chris Wild and 3rd Floor Van Riebeek Street, Groblersdal 0407

Thohoyandou 0950

Mopani Branch MPUMALANGA MANAGEMENT

(located in Tzaneen)

Ms Maseje Nchabeleng: Branch Provincial Manager: Mr Mashiba Kgole ManagerPhysical address: 16 Brander Street, Bi-Water Building, Suite 102, Nelspruit 1200 Tel: +27 15 306 6400 Tel: (013) 755 8730 Fax: +27 15 307 2233 Email: mkgole@seda.org.za Email: mnchabeleng@seda.org.za Mr Kgole Branch Manager: Carol Matsheka Physical address: 2nd Floor ABSA BuildingPhysical address: Shop 21, Simunye 13 Danie Joubert StreetShopping Centre, 1263 Arend Street, Hazyview 1242 Tzaneen Tel: (013) 799 5340 0850 Email: cmatsheka@seda.org.za Ms Matsheka

Waterberg Branch

(located in Mokopane)Branch Manager: Florence Mathebula Mr Steve Botha: Branch ManagerPhysical address: South Wing, Govan Mbeki Building, Lurgi Square, Secunda 2302 Tel: (017) 634 4339 Email: FMathebula@seda.org.za Tel: +27 15 492 9600 Fax: +27 15 491 7361 Email: sbotha@seda.org.za Ms Mathebula Physical address: Old Nedbank Building 40 Retief Street Mokopane Branch Manager: Ishmael Mmabadi Physical address: 16 Brander Street, Bi-Water Building, Suite 103, Nelspruit 1200 Tel: (013) 754 4380 Email: immabadi@seda.org.za 0600 Mr Mmbadi Sekhukhune Branch (located in Groblersdal)Branch Manager: Manase Netshisaulu Physical address: 156 Lorenco Street, Rotunda Circle, Malelane 1320 Mr Sabelo Ntshangase Tel: (013) 790 1183 Tel: +27 13 262 9430 Email: mnetshisaulu@seda.org.za Fax: +27 13 262Mr Netshisaulu Email: sntshangase@seda.org.za Branch Manager: Philiswa Mnguni Physical address: Mutual Building Physical address: 1st floor, Level 2–1A, Shop 4 and Office 10, 12Saveways Shopping Centre, Corner Mandela Hereford StreetRoad and OR Tambo Street, Witbank 1035 Tel: (013) 655 6970 Groblersdal Mr Mnguni Email: pmnguni@seda.org.za 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.