OVERVIEW Development
OVERVIEW Development finance and SMME support Accelerator programme is reaping rewards. The SME Accelerator of the Durban Chemicals Cluster (DCC) is providing advice and market access to small businesses within the sector. It also runs a series of annual awards with substantial cash prizes, which help to bolster the bottom line, as was the case when Dilex Purification won “Best Environmental Sustainability Solution”. Takalani Rathiyaya, pictured, left, of eThekwini Municipality presented the award to Itu Rangaka, CEO of Dilex Purification. The metropolitan municipality supports the DCC, which has a membership of more than 80 major and emerging chemicals manufacturing concerns. Kyle Ballard, Head of the DCC Accelerator Programme, notes that there are several benefits for SMMEs in being part of an Accelerator programme, over and above the possibility of winning a cash prize. Having access to other options for capital investment and investment opportunities through accelerators, which can facilitate introductions, will ease the path for many startups. Helping SMMEs connect to customers and new markets is another benefit, as is the mentorship that comes with mixing with seasoned industry professionals, who can also help new entrants understand what the sector needs. The collaborative environment with other small business owners can also spark growth. Other sector-specific accelerators with the backing of the municipality are the Durban Automotive Cluster, KZN Clothing and Textiles Cluster and eThekwini Furniture Cluster. The intention is to be supporting 2 000 SMMEs by 2025, with 200 new contracts in place with the formal manufacturing sector. The provincial government’s Sukuma 100 000 surpassed its target by creating 137 000 job opportunities in 2021, with all government departments participating in focussing on opportunities for youth employment. Examples of companies that received support under the project are Gelanison Agric, an agricultural initiative that produces high-value crops using the hydroponic system, and AdNotes, a telecommunications company which is 100% black and youthowned. The company received funding from the KZN Youth Fund ONLINE RESOURCES National Department of Small Business Development: www.dsbd.gov.za SA SME Fund: www.sasmefund.co.za Small Enterprise Development Agency: www.seda.co.za SECTOR INSIGHT Awards bolster cashflow for small businesses. and provides Internet services in the Ugu and King Cetshwayo Districts and eThekwini Metro. The Small Enterprise Development Agency (Seda) is active in supporting entrepreneurs. Seda gives nonfinancial support through training, assistance with filling in forms, marketing and creating business plans. In KwaZulu-Natal, Seda runs 12 Incubators which either help new businesses get started or with the rehabilitation of existing enterprises. Three models are used: Technology Demonstration Centres (demonstration and training); Technology Incubators (where the focus is rehabilitation); Hybrid Centres, which combine elements of the other two models. The KwaZulu-Natal incubators include ICT and construction (three centres each), furniture and hi-tech (two each) and chemicals and essential oils. ■ KWAZULU-NATAL BUSINESS 2024/25 42
Banking and financial services OVERVIEW Old Mutual is a step closer to starting a bank. SECTOR INSIGHT Financial sector diversification is accelerating. Financial services company Old Mutual has been granted approval by the Prudential Authority to establish a bank, subject to certain licence conditions. With more than 30 000 employees in 14 countries, Old Mutual is best known for insurance, but it is now on the path to establishing a fully fledged bank. For some time, the group has offered the Money Account, a low-cost transactional account which doubles as a unit trust savings account. This product was offered by Old Mutual Transaction Services in association with Bidvest Bank Ltd and Old Mutual Investment Administrators. Three other new banks are in the pipeline and have received regulatory approval: the Young Women in Business Network (YWBN) Mutual Bank, Postbank (a state entity) and the SA Innovative Financial Services Cooperative (SAIFSC), which will be run by the Department of Women, Youth and People with Disabilities. While South Africa’s Big Four – Absa, FirstRand, Nedbank and Standard Bank – continue to play a big role in the banking sector, a feature of the 21st century has been the opening up of the financial services sector, in large measure driven by digital offerings from smaller banks. Capitec was one of the first, followed by Discovery Bank and Zero Bank. From 2017, a number of new stock exchanges have been established, further evidence of an opening up of what had for many years been a quite static sector. One of the newer ONLINE RESOURCES Association for Savings and Investment South Africa: www.asisa.org.za Financial Sector Conduct Authority: www.fsca.co.za South African Institute for Chartered Accountants: www.saica.co.za exchanges, A2X, has Aspen and Mr Price, two companies with their headquarters in KwaZulu-Natal, among the entities which have registered secondary listings. Of the four new exchanges that have been established since 2017, ZARX has been suspended and 4AX has rebranded as the Cape Town Stock Exchange. Equity Express Securities Exchange (EESE) trades in Black Economic Empowerment (BEE). The Brics New Development Bank has made a 0-million loan for the expansion of the container terminal in Durban. Activist groups in Durban’s southern suburbs are opposing the loan and the expansion. Up the coast at Richards Bay, the World Bank’s International Finance Corporation (IFC) has committed -million to a feasibility study on the construction of a liquefied natural gas (LNG) storage and regasification terminal. The study’s costs are shared with Transnet and a private investor will be sought if the feasibility study is positive. Together with real estate and general business, the financial sector in KwaZulu- Natal accounts for 18% of gross domestic product (GDP). ■ PHOTO: Old Mutual 43 KWAZULU-NATAL BUSINESS 2024/25
