SMME and development finance

SMMEs are preparing to export.

Having access to foreign markets goes a long way to creating a bigger business out of a small business.

With many interventions in the SMME sector being designed to give small business owners access to the mainstream economy, the Export Awareness Workshops, jointly hosted by the North West Development Corporation (NWDC) and the National Department of Trade, Industry and Competition (dtic), exactly fit the bill.

Held in Rustenburg, Mahikeng and Potchefstroom in 2022, the workshops covered every aspect of the exporting process for interested business owners.

Some of the topics that were included in the workshops were:

• Export-readiness assessment

• Registration as an exporter, SARS Customs Division

• Certificate of Origin, to prove a product is authentically South African

• Marketing plan and strategy

• Licences and permits

• Trade leads

• Services offered by the dtic’s Export Helpdesk

• Export Marketing and Investment Assistance (EMIA) and how to qualify

• Sector Specific Assistance Scheme (SSAS), application through provincial agencies

• Participation at an international expo pavilion

• Industry-specific export councils

At the conclusion of the workshop, anyone showing an interest in taking up exporting was encouraged to register with the dtic and to attend two fourday intensive workshops on the department’s Global Export Passport Programme (GEPP).

As one of the biggest enterprises in the province, Impala Rustenburg naturally makes a big impact on the provincial economy through its supply chain. The company’s Enterprise and Supplier Development (ESD) Programme has similarly had a big impact. Since 2021, 400 SMMEs have benefitted from various initiatives under the programme.

A training programme designed to help informal businesses become formalised invites SMMEs to attend a five-day workshop. From that, candidates are selected to be part of a 12-month programme to learn further skills. This programme is run for Impala Rustenburg by Classic Oriental Consulting and Accuracy Group, two local SMMEs which operate within the mine communities.

More recently, Impala Rustenburg has opened an Economic Inclusion Centre (EIC) that will serve as a small business hub for mine-community SMMEs. It offers shared facilities and a number of services, ranging from funding facilitation to advice on market access.

A construction company that had a total of six employees, two of whom were permanent, has increased its payroll to 22 on the back of a contract secured with Sun City.

CPKM Services, run by Charlotte Mosito, had previously done subcontracting work on drains, road construction and indoor security fencing but being part of an expansion project at Sun City, Lefika Villas, marks a significant step up for the BCom Business Management graduate who has also completed a Construction Management short course through UCT.

The first phase of development of Lefika Villas started in October 2022. The finished project will comprise 48 three-bedroom villas and 10 four-bedroom villas, providing accommodation for an additional 400 guests.

The deal included a provision that 30% of the build value must be allocated to local contractors. “This arrangement will see skills transferred, helping them to secure further work opportunities in the future. The bulk of workers will come from Moses Kotane municipality and staff will also be sourced from the Sun City doorstep communities,” says Tebogo Mokgejane, Sun City’s Socio-Economic Development and Stakeholder Engagement Manager, pictured above.

Digital development

The North West Provincial Government is investing in digital infrastructure through the Mafikeng Digital Innovation Hub which is both a co-working environment and place to get support in using digital tools.

A Digital Covid-19 SMME Business Recovery training intervention was carried out by the Hub in partnership with the Department

Online Resources

Mafeking Digital Innovation Hub: www.mafihub.co.za

North West Development Corporation: www.nwdc.co.za

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

Tholoana Enterprise Programme: www.sabfoundation.co.za of Economic Development, Environment, Conservation and Tourism (DEDECT). This resulted in more than 180 entrepreneurs from all four districts of the province receiving training. A Youth Digital Skilling programme aims to teach skills such as software and app development, Artificial Intelligence and robotics.

In the 2022/23 financial year, 60 youth-owned businesses were incubated at the Hub and the provincial government has budgeted R12-million to further support these businesses.

In 2022 a two-day Youth Summit followed by the Integrated Youth Development Strategy 2025 workshop in partnership with National Youth Development Agency. A youth development coordinator has been appointed in the Office of the Premier.

The South African National Roads Agency Limited (Sanral) has nine contracts covering more than 2 300km in the province. A set of subcontracts is being negotiated for routine maintenance such as the patching of potholes, fencing and the cutting of grass verges.

The Small Enterprise Development Agency (Seda) is an agency of the DSBD and gives nonfinancial support to entrepreneurs through training, assistance with filling in forms, marketing and creating business plans. The Seda Technology Programme helps potential businesses become trading entities. The Industrial Development Corporation is a strategic lender and plays a strong role in supporting small and emerging enterprises. ■