OVERVIEW Development
OVERVIEW Development finance and SMME support Water contract flows from networking. The Wild Coast Sun has a new water supplier. L’aQua Joyce, owned and run by Thumeka Mcobothi, pictured, from Bizana in the Amadiba A/A Marina Location, will provide water-cooler equipment and bottles as part of the resort’s Enterprise Development initiative. The three-year contract follows Thumeka’s attendance of a two-day SMME Business and Networking Conference run by the resort to help educate and assist SMMEs with information related to procurement opportunities. She has also been selected to attend the Wild Coast Sun Academy to study an SMME business course. The resort aims to achieve 90% procurement of all goods and services from BBBEE level 1 suppliers within the next five years. The Department of Economic Development, Environmental Affairs and Tourism (DEDEAT) is working with the Eastern Cape Development Corporation (ECDC) to increase the support of SMMEs. This is done by helping SMMEs gain access to finance and markets, as well as ensuring that provincial government contracts are accessible to small businesses. Provincial government departments are encouraged to buy from SMMEs. Three of the ECDC’s four business units are devoted to small business: Rural, Enterprise Finance and Business Support; Investment Management, Trade and Investment Promotion; and Economic Development Coordination and Sector Support. The ECDC has several financial and non-financial products tailored to SMMEs through various programmes offered by these business units. Export Help Desks have been established to support small business in the Nelson Mandela Bay and Buffalo City Metropolitan Municipalities. The Small Enterprise Development Agency is an agency of the National Department of Small Business Development (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. The Seda Incubation Unit supports 14 incubators in the province to the value of R29.8-million. Work is underway to refurbish several state-owned industrial parks. Areas like the Dimbaza Industrial Park assist SMMEs with affordable space and the ONLINE RESOURCES Eastern Cape Development Corporation: www.ecdc.co.za Eastern Cape Rural Development Agency: www.ecrda.co.za SECTOR INSIGHT The Seda Technology Programme supports 14 incubators. programme has so far created 379 jobs and involved 71 local SMMEs. The 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 microbusinesses 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. ■ EASTERN CAPE BUSINESS 2023/24 38
FOCUS Helping entrepreneurs grow The Eastern Cape Development Corporation has several programmes which support SMMEs. 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. The Informal Business Support Programme (IBSP), implemented through the ECDC, sees to it that small businesses have the tools and equipment they need to prosper and grow. The Business Development Services Unit of the Eastern Cape Development Corporation (ECDC) forms the backbone of the enterprise development ecosystem which ensures the sustainability of businesses. 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 2023/24
