5 years ago

Limpopo Business 2018-19 edition

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A unique guide to business and investment in Limpopo Province, South Africa. Launched in 2007, the 2018/19 edition of Limpopo Business is the 10th issue of this highly successful publication that has established itself as the premier business and investment guide for the Limpopo Province. Limpopo has many investment and business opportunities. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on developments in the transport and logistics sector and a focus on tourism. Interviews with industry leaders in development finance from the Industrial Development Corporation and the Small Enterprise Development Agency share their insights into the state of the provincial economy. Investment news related to mining, telecommunications and development finance is carried in overviews of all the main economic sectors. The publication also has a comprehensive register of all provincial government and municipal contact details. Updated information on Limpopo is also available through our monthly e-newsletter - which you can subscribe to at

OVERVIEW Development

OVERVIEW Development finance and SMME support The private and public sectors are backing small business growth. Large companies in Limpopo are increasingly looking to support new business ventures, both by allocating service functions to local businesses and through training and mentoring. The Implats Group spent 36% of its procurement budget with Limpopo companies in 2017/18. The Marula platinum mine alone spent R54-million on goods and services in the Sekhukhune District where the mine is located on the eastern limb of the Bushveld Complex. De Beers Consolidated Mines plays a big role in the economy of northern Limpopo through its Venetia Mine. The company estimates that for every employee, there are a further 10 people who benefit. The company has launched two business incubators that has participants from the two local municipalities, Blouberg and Musina. The De Beers Zimele Venetia Mine Business Hub has created more than 495 jobs since it was established to support entrepreneurs through low-interest loans, mentorship, coaching and skills development. Local procurement has given chances to 15 local companies, in fields such as road maintenance, the canteen, small civils work and the supply of tyres and batteries. More than 20 small businesses are registered as clients with the Shanduka Black Umbrella incubator in Lephalale. The sectors in which these companies operate range from plant hire and construction to training and marketing. Individual mentors for these enterprises are drawn from the local TVET college, the Limpopo Economic Development Agency and private businesses. SECTOR INSIGHTS A cleaning chemicals company is growing through the Seda Technology Programme. 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. De Beers Venetia Mine has partnered with the Small Enterprise Development Agency (Seda) in training business owners and prospective entrepreneurs. Seda is a subsidiary of the National Department of Small Business Development (DSBD) and is one of the most active agencies in supporting entrepreneurs. Seda is not a financial agency, focussing LIMPOPO BUSINESS 2018/19 76

OVERVIEW rather on training and administrative support, although the agency will help small, medium and micro-enterprises (SMMEs) get in touch with financial bodies. The Seda Technology Programme (STP) is a key method of helping businesses scale up to the point where their products pass muster in the commercial world. A jam manufacturer may need assistance in getting the necessary health certificates before being able to sell to a big retailer, for example. Nachem Chemical, a company making cleaning chemicals in the Vhembe District Municipality, is an example of a company that has used the STP to good effect. Local, provincial and national government have all committed to spending more of their budgets through small businesses and cooperatives. But when the state is slow to pay, this can have catastrophic consequences for the small business operator. The Limpopo Provincial Government reported that in 2017, government departments had paid invoices within 30 days 96% of the time. A concerted strategy to strengthen and develop the economies of the townships and villages of Limpopo has been launched. Spearheaded by the Limpopo Economic Development Agency (LEDA), a unit of the Limpopo Department of Economic Development, Environment and Tourism (LEDET), the plan has eight focus areas which include making licences and permits easier to obtain, that government departments buy from small, medium and micro-enterprises (SMMEs), indigenous products are supported and protected and encouraging small businesses to support one another through the clustering approach. LEDET has signed memorandums of understanding with the South African Bureau of Standards (SABS) and with Productivity South Africa. These agreements aim to help SMMEs within the province become more competitive. Gaining access to markets is a crucial for SMMEs and the programme aims to assist in that regard. Ten SMMEs and 10 co-operatives are currently being assisted in getting access to the mainstream market. Agricultural entrepreneurs will benefit from the Agri-park scheme. LEDA is to establish a bulk-buying co-operative. The plan is to ONLINE RESOURCES Gazelles: Industrial Development Corporation: Limpopo Department of Economic Development, Environment and Tourism: National Department of Small Business Development: Shanduka Black Umbrellas: Small Enterprise Development Agency: Small Enterprise Finance Agency: enlist more than 200 members whose collective buying power will give them an advantage in purchasing stock. An infrastructure project that will assist SMMEs and co-operatives is underway near Polokwane at the Seshego Industrial Park. The National Department of Trade and Industry has committed R21-million to revitalising the park which will provide trading and storage space for businesses of all sizes. The construction by the provincial government of market stalls is aimed at supporting smallscale farmers and traders. Market stalls have been ereceted at Mopani District and will be put up in Elias Motsoaledi Local Municipality in the Sekhukhune District and Molemole Local Municipality in the Capricorn District. The National Department of Small Business Development has several programmes to assist SMMEs and co-operatives. These include: • The Black Business Supplier Development Programme, a cost-sharing grant to promote competitiveness • The Co-operative Incentive Scheme, a 100% grant. The National Gazelles is a national SMME accelerator jointly funded by Seda and the DSBD. The aim is to identify and support SMMEs with growth potential across priority sectors aligned with the National Development Plan and Seda’s SMME strategy. Businesses can receive up to R1-million for training, productivity advice, business skills development and the purchase of equipment. 77 LIMPOPO BUSINESS 2018/19

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