South African Business 2018 edition

OVERVIEW
citrus. Vaal Community Citrus
could create 1 330 jobs.
The Provincial Government of
the Northern Cape is an example
of a government body which
puts a strong emphasis on supporting
small business as a way
of stimulating economic activity,
getting more people into the
mainstream of the economy and
bolstering food security. In 2016,
support was given to 210 SMMEs
and 91 co-operatives. Business
and financial management training
was offered to 83 informal
traders. In partnership with the
Small Enterprise Development
Agency, nine cadets received
training before receiving work
places at various municipalities.
The Department of Economic
Development and Tourism hosted
an Economic Research Day
which brought together support
agencies, government and
private companies such as Petra
Diamonds and Anglo American.
A Provincial Incubation Strategy
is planned, as is a specialist
Renewable Energy Incubator.
Two of the Eastern Cape
Development Corporation’s seven
business units are devoted to small
business: Development Finance
and Enterprise Development.
The ECDC and the Technology
Innovation Agency (TIA) jointly
run the TIA-ECD Innovation Seed
Fund Programme which identifies
and co-funds early stage technology
innovation projects in the
Eastern Cape.
The National Department of
Labour has a programme to support
people with disabilities. The
Sheltered Employment Factories
initiative puts out about 3 000 different
product types in fields such as leather and canvas work, furniture,
textiles, screen printing and book binding.
The Enterprise Investment Programme (EIP) of the National
Department of Trade and Industry (dti) is another support programme.
In 2017, the success of a uniform and protection equipment company
was advertised by the EIP: having received a grant in 2014, Thorax LP
Equipment, a 100% black-women-owned company, has subsequently
turned over more than R8-million and employed many young people.
The Development Bank of Southern Africa (DBSA) is another major
funder of projects.
Private sector
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.
Agribusiness and agri-processing are among the three sectors that are
targeted by the Masisizane Fund for loan financing. The others are franchising/commercial
and supply chain/manufacturing. Training is offered
through a Business Accelerator Programme. As a non-profit initiative of
the Old Mutual Group, the fund focusses on the cash flow of potential
businesses rather than insisting on security in the form of property.
Private companies are supporting SMMEs through their buying chain.
Woolworths is funding 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. A regular supplier to Woolworths,
Qutom, assists with the project.
Using the supply chain to benefit small business is at the heart of
Anglo American’s Zimele, which runs four enterprise development and
investment funds. Hub managers support small business in the downstream
sectors relevant to the resource mined by the Anglo subsidiary.
The Thermal Coal Hub and the Platinum Hub are two examples. The
Mondi Zimele Hub in Piet Retief supports businesses in the paper and
forestry supply chain.
ONLINE RESOURCES
Development Bank of Southern Africa: www.dbsa.org
Eastern Cape Development Corporation: www.ecdc.co.za
Gazelles: www.nationalgazelles.org.za
National Empowerment Fund: www.nefcorp.co.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
131 SOUTH AFRICAN BUSINESS 2018