Views
1 year ago

Eastern Cape Business 2022-23

  • Text
  • Eastern
  • Cape
  • Mandela
  • Nelson
  • Website
  • Programme
  • Province
  • African
  • Economic
  • Municipality
  • Wwwglobalafricanetworkcom

OVERVIEW Development

OVERVIEW Development finance and SMME support Wild Coast farmers are supplying new markets. Queens Greens, a small farming company, has recently expanded into new markets with the support of the Wild Coast Sun. A new borehole and irrigation system (pictured) has been provided to Queens Greens, enabling them to go beyond being a supplier to the resort and to start supplying local markets with fresh produce. The Wild Coast Sun’s Enterprise Development Programme has trained and supported seven local SMMEs, which employ a total of 42 people. The resort aims to achieve 90% procurement of all goods and services from BBBEE level 1 suppliers within the next five years. In early 2022, the Wild Coast Sun hosted a two-day SMME Business and Networking Conference which was attended by 150 people. Among the bodies represented were the Small Enterprise Development Agency (Seda), the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism (DEDEAT), the Eastern Cape Gambling Board, the Winnie Madikizela- Mandela Local Municipality and the Small Enterprise Finance Agency (Sefa), as well as several SMME financing houses. Work is underway to refurbish several state-owned industrial parks. Not only will areas like the Dimbaza Industrial Park assist SMMEs with affordable space, the programme has so far created 379 jobs and involved 71 local SMMEs. Provincial government departments are encouraged to buy from SMMEs and the current administration had spent by December 2021 58% of its procurement budget (R24.3-billion) purchasing from local suppliers. The National Department of Small Business Development (DSBD) has a Shared Economic Infrastructure Facility, which is investing R34.7-million in support of Eastern Cape projects: the KwaNtozonke Product Market in King Sabata Dalindyebo Municipality and the Chris Hani Co-operative Development Centre in Chris Hani District. A further R1.9-million has been allocated to 141 informal and micro businesses in the Amathole and Joe Gqabi district municipalities. Volkswagen South Africa (VWSA) has a project called Ntinga (“to soar” in Xhosa) whereby suppliers receive training and are mentored for 18 months. ONLINE RESOURCES Eastern Cape Development Corporation: www.ecdc.co.za Eastern Cape Rural Development Agency: www.ecrda.co.za SECTOR INSIGHT The upgrade of industrial parks is creating work. Two of the Eastern Cape Development Corporation’s seven business units are devoted to small business: Development Finance and Enterprise Development. The ECDC has several financial products tailored to SMMEs. The ECDC and the Technology Innovation Agency (ITA) jointly run the TIA-ECD Innovation Seed Fund Programme, which aims to identify and cofund earlier stage technology innovation projects. Help Desks have been established to support small business in Port Elizabeth and East London. The Small Enterprise Development Agency is an agency of the DSBD which gives non-financial support to entrepreneurs through training, marketing and assistance in the writing of business plans. The Seda Technology Programme (Stp) helps potential businesses become trading entities. ■ EASTERN CAPE BUSINESS 2022/23 38

FOCUS Supporting Eastern Cape business The Eastern Cape Development Corporation boosts the local economy with targeted programmes. Services include: business networks; advisory support; business plan development; feasibility studies; due diligence; mentorship and coaching; quality management support; marketing support; intellectual property registration support and management; pre-commercialisation studies; skills development; information workshops and seminars. Participants in the Mdantsane Motor Mechanic Enterprise Development Programme received toolboxes to celebrate having their businesses registered. The Business Development Services Unit of the Eastern Cape Development Corporation (ECDC) forms the backbone of the enterprise development ecosystems which ensures the sustainability of business. Business Support The Business Support sub-unit provides non-financial pre-investment and post-investment support, ensuring that businesses are ready for finance, market ready and poised for long-term growth. Ongoing support is available through mentorships, market access opportunities as well as business and financial management advice. The unit offers both strategic and operational services to equip small businesses to perform to their full potential, with increased profitability and improved management processes that enhance their long-term viability. The Business Support sub-unit promotes a culture of entrepreneurship, improvement in business competitiveness and facilitates access to market and to education and training for SMMEs. ECDC contact details Address: 1 Moore Street, Quigney, East London Tel: +27 43 704 5604 Email: info@ecdc.co.za Website: www.ecdc.co.za Development Finance The Development Finance sub-unit manages the ECDC’s business finance product offering and assists enterprises gain access to finance. Through both short-term and long-term products, the ECDC has set itself apart as the financial service provider of choice for initiatives that bring a meaningful development impact. With an understanding of the historical lack of access of small-to-medium enterprises to finance, the ECDC uses adequate management capacity and business viability as key lending criteria. ECDC Access, the category name for short-term finance, offers products geared towards facilitating efficient cash flow management. “Access” denotes the values of flexibility, convenience, efficiency and transparency. ECDC Future, the category name for long-term finance, offers long-term debt finance vehicles, one covering commercial property and another dealing with equity finance. The ECDC’s business finance products are best suited to applications that facilitate job creation and/or retention, economic empowerment, value addition, rural/township development and increased export income. Any greenfield initiative that leads to expansion and rehabilitation will be eligible for application for finance. The ECDC aims to provide efficient client service for the entire duration of the contract term. Monthly account management and quarterly report-back visits will gauge the health of the business. ■ EASTERN CAPE BUSINESS 2022/23

Other recent publications by Global Africa Network: