Limpopo Business 2019-20 edition

OVERVIEW Development

OVERVIEW Development finance and SMME support Big companies are using their supply chains to support small business. SECTOR INSIGHTS The University of Limpopo has started a Seed Fund for students with business ideas. Chairman of Zizwe Opencast Mining, Howard Maimela, Kgosi Manotshe Ramokoka and senior general manager of Amandelbult Complex, Patrick Morutlwa. The provincial government, through its departments and agencies, has since 2014 given financial support amounting to more than R51-million to 1 200 co-operatives. In the same period, R193-million was provided to SMMEs. In partnership with the Small Enterprise Development Agency (Seda), the provincial government has established a construction incubation centre at Steelpoort in Sekhukhune to train emerging contractors. A jewellery incubation centre in Polokwane trains young jewellery makers. Local, provincial and national government have all committed to spending more of their budgets through small businesses and cooperatives. The Limpopo Provincial Government reports that in 2017, government departments paid invoices within 30 days 96% of the time. The University of Limpopo has launched the Limpopo Student Seed Fund which aims to promote social innovation among students. Sponsored by the SAB Foundation, the new fund will see R400 000 distributed to students whose businesses tackle social issues such as hunger, violence and unemployment. 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 microenterprises (SMMEs), indigenous products are supported and protected, and encouraging small businesses to support one another through the clustering approach. The revitalisation of the Seshego and the Nkowankowa Industrial Parks is intended to boost the local economy, with SMMEs expected to benefit the most. The National Department of Trade and Industry has committed R21-million to revitalising the Seshego Industrial Park which will provide trading and storage space for businesses of all sizes. LEDET has signed memorandums of understanding with the South African Bureau of Standards (SABS) and with LIMPOPO BUSINESS 2019/20 74

OVERVIEW Productivity South Africa. These agreements aim to help SMMEs within the province become more competitive. Ten SMMEs and 10 co-operatives are currently being assisted. LEDA intends establishing a bulk-buying cooperative. The plan is to enlist more than 200 members whose collective buying power will give them an advantage in purchasing stock. The National Department of Small Business Development (DSBD) has several programmes to assist SMMEs and co-operatives. These include: • The Black Business Supplier Development Programme, a costsharing 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. Private sector Large companies in Limpopo are supporting new business ventures by allocating service functions to local businesses and through training and mentoring. Anglo American Platinum has extended the contract with Zizwe Batlase for the provision of strip-mining services at its Amandelbult Complex. Zizwe Batlase is 51% owned by the local community of Baphalane through the Baphalane Community Trust, named Batlase. Since 2016, Zizwe Batlase has been providing employment, SMME development, infrastructure development and business opportunities to local and small businesses in the community. 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 has ONLINE RESOURCES Industrial Development Corporation: www.idc.co.za Limpopo Department of Economic Development, Environment and Tourism: www.ledet.gov.za National Gazelles: www.nationalgazelles.org.za Shanduka Black Umbrellas: www.shandukablackumbrellas.org Small Enterprise Development Agency: www.seda.org.za Zimele: www.anglozimele.co.za launched two business incubators in 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. 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. 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. 75 LIMPOPO BUSINESS 2019/20