Gauteng Business 2016 edition

INTERVIEW MASISIZANE

INTERVIEW MASISIZANE FUND Interviewee Name Helping small business thrive BUILDING SUSTAINABLE BUSINESSES THROUGH SUCCESSFUL PARTNERSHIPS Nandipa Gaqa, the Provincial Manager for Masisizane Fund Gauteng, is helping to drive development of small business in the City of Gold. What is the Masisizane Fund’s footprint in Gauteng? We have one branch in Sandton which looks after businesses partnerships across all with Omnia, Gra the metros in Gauteng (Johannesburg, Tshwane and Ekurhuleni). Association Being and municipalities, th their planting significantly in 2014 Nandipa Gaqa a largely urban province, we predominantly fund urban and peri-urban channeled towards Grain Co as businesses with a small percentage of rural business. The Masisizane Fund (NPC), is an initiative Given of Old the increasing Mutual South residential Africa, established and property developments Masisizane across opera in 2007 following the closure of the Unclaimed Gauteng, Shares this Trust. has This created was done an opportunity in consultation for franchises to open nationally businesses in small to medium size shopping centres, in addition in to Gauteng large and r with it with the National Treasury of South Africa. The mandate of the Fund at inception was and remains to contribute meaningfully to employment creation, poverty eradication malls that also offer a diverse shopping experience. This has offices led to a in KwaZu and reduction of inequality, economic growth and the attraction of investment. This is significant growth in new and established franchised outlets. BIOGRAPHY Limpopo, Eastern done mainly through promotion of entrepreneurship, enterprise finance and support to small, micro and medium enterprises (SMME’s). Western Cape. Nandipa Gaqa is the Provincial What franchising opportunities are you able to fund? The process to follow when apply Manager Central Regions for The Fund’s focus is on enterprises that are 51% or more owned from the Masisizane by Fund is: The Fund provides loan finance in the following sectors: the Masisizane Fund. Nandipa previously disadvantaged individual(s), giving priority to rural Submit and the periurban/township • Manufacturing areas. Masisizane gives preference to businesses that following documents fo • Agriculture relevant provincial office: joined the Masisizane Fund in • Comprehensive business plan • Supply Chain April 2013. Prior to that she was are owned by the youth, people with disabilities, or that are projections; owned • Franchising a Risk Analyst in the Group Risk by (51% or more) women and which target productive and • For labour- established businesses – • Commercial Enterprise three years) and the latest man Division of Investec Bank for absorbing sectors. There are numerous benefits of funding an SMME Non-financial value adding services include capacity • For start-up businesses – financ five years, two of which were that wants to open up a franchise, notably the fact that investing in development, business management and technical support, • Tax clearance certificate; spent as a graduate trainee in an established financial education, brand market with development a standardised product/ business operating • Off model take agreements and/or l Balance Sheet, Credit and Operational Risk. also makes it simpler for the franchisee to run the business (compared ensures service it quality is fairly standards easy to and replicate compliance. in any A Business location. The franchise • Signed model consent for a credit ch After working as Credit Risk to an independent brand) as the franchisee has access to approved and Deal Structuring Specialist for two years, Nandipa The franchisee also has access to a comprehensive training pro- systems and reputable suppliers from which to source supplies. moved into her current role in gramme, including on-site practical training and operating manuals December 2015. Nandipa has should they require additional information. The franchise model removes (to an extent) barriers to entry, given that it allows individuals a BCom Honours in Business Finance (Wits University) and a with a lack of relevant experience to invest in franchised outlets, as BCom in Economics and Business Finance (Wits University). is that the marketing of the brand is shared, and the existing long as they have been approved as franchisees. Another major benefit brand The target market is enterprises that are 51% or more owned by the previously disadvantaged individual(s) giving priority to rural and peri-urban/township areas. Masisizane funding is biased towards 51% plus owned women, youth and people with disabilities. Masisizane will target productive and labour absorbing sectors as approved by the Board of Directors from time to time. The Fund’s success is driven through a focused approach on high impact industry sectors, coupled with a comprehensive SMME finance solution that includes business support. Acceleration Program has been e clients receive training and suppo eligible to receive financial suppo The growth of the Masisizane Fu inception. Although the initial foc the fund has gradually grown to b fund with the vision of being able as a sustainable entity and thereb for many years to come. The fu R1b and it plans to invest R420 SMME’s by the end of 2017. The development of agri-clusters Masisizane Fund’s approach in entail the clustering of small sca the farmers benefit from economi on value chain financing, agro-p partnerships. In 2013 the Fund initiated a p Harry Gwala municipalities co trading in grain and dairy prod focused on development of value mechanization, storage and micro GAUTENG BUSINESS 2016 106

INTERVIEW equity assists the franchisee in marketing the store locally as the product is already known and tested in the market. How are you able to assist your clients? We offer short- and long-term funding solutions to our clients based on their business needs. We use either pure debt or blended finance instruments (this can include both debt and equity funding), depending on the viability of the business concept. We also offer incubation opportunities to businesses that meet the criteria but that are not at the right stage of being funded – be it a lack of access to markets or the requisite technical skills or knowledge. We also offer business support services to funded businesses to ensure they grow and sustain their business performance. The level of support can also entail linking the client to a mentor to assist with areas of development or improvement. CTU MANUFACTURING CO-OP This co-operative was founded in 2008 in Gauteng centring around manufacturing fully guaranteed products such as hospital linen, apparel/attire, uniforms as well as corporate and personal protective clothing. As professional nurses the owners saw an opportunity to supply hospitals with apparel. They resigned and went for business training to turn their idea into reality and have since created 56 employment opportunities for disadvantaged women in Gauteng. CTU received loan funding from the Fund in 2013 for the fulfilment of contracts with the Gauteng Department of Health. A second facility in 2014 ensured successful delivery of various contracts in 2015. CTU provides in-house training and experience to young graduates. What difficulties do SMMEs face? There is a funding gap or shortfall at this level, as funding is not easy to obtain without a track record in terms of products, services and access to consistent markets. In the semi-established business category there is a drive for business owners to grow their businesses and take them to the next level, but access to markets and flexible funding solutions still pose a major challenge. The Fund sees great value in assisting these companies as they are committed to creating jobs and thus contributing to the reduction of unemployment and alleviating poverty. What makes a successful SMME? A hardworking and passionate entrepreneur who has both a clear vision in addition to the ability to implement a sound business strategy throughout the business. Someone with the ability to produce or offer a quality product or service to the market and deliver on time. Access to consistent markets and the ability to market the product to the target market. Also important to enable their business to grow is access to affordable funding opportunities, stringent cash management and budgeting, the ability to identify good investment opportunities and having a business model that is sustainable, in addition to the ability to create or maintain jobs. CONTACT INFO Physical address: Isibaya Building, 93 Grayston Drive, Sandton Postal address: PO Box 784531, Sandton, 2146 Tel: +27 11 217 1746 Website: www.masisizane.co.za 107 GAUTENG BUSINESS 2016