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Northern Cape Business 2017-18 edition

  • Text
  • Infrastructure
  • Tourism
  • Province
  • Network
  • Science
  • Development
  • Sez
  • Business
  • Investment
  • Business
  • Northern
  • Cape
  • Pretoria
  • Province
  • Kimberley
  • Municipality
  • Economic
  • Mining
  • Solar
  • Upington
Northern Cape Business 2017/18 is the seventh edition of this highly successful publication that has, since its launch in 2009, established itself as the premier business and investment guide to the Northern Cape Province. Officially supported and utilised by the Northern Cape Department of Economic Development and Tourism, Northern Cape Business is unique as a business and investment guide that focuses exclusively on the Northern Cape.

OVERVIEW Development

OVERVIEW Development finance and SMME support Programmes for cadets and Gazelles are on offer in the Northern Cape. The provincial government’s commitment to supporting small enterprises, rural enterprises and co-operatives was shown in concrete form in 2016 with the support of 210 SMMEs and 91 co-operatives. Business and financial management training was offered to 83 informal traders. In partnership with the Small Enterprise Development Agency (Seda), nine cadets received training before receiving work places at various municipalities. Other steps taken by the provincial government to support co-ops and SMMEs include: • trading spaces allocated at Kimberley Diamond Cup (20) • stalls allocated at Southern African International Trade Exhibition for Retail Products • preferential procurement from state-owned enterprises such as Eskom or Transnet (36) • training for clothing and textile manufacturing (25 women) • hosting of national Technology for Women in Business awards • hosting of Provincial Youth in Business Summit (150 young people) • participation in Entrepreneurs’ Day (56 TVET students). The Research and Development Unit within the Policy, Research and Innovation Programme of the Department of Economic Development and Tourism hosted an Economic Research Day at the Kalahari Lodge in Kimberley in October 2016. The day, ”Making SMMEs work’’, brought together support agencies, government and private companies such as Petra Diamonds and Anglo American. The DEDAT’s Knowledge Management and Innovation Unit made a presentation on innovation and technology for small businesses. A Laptop Trolley was used to demonstrate how ICT can assist business owners improve their entrepreneurial skills and their business by using technology. Specific investment opportunities that are being encouraged with the SMME sector will see funds allocated to: • a guest farm in the Pixely Ka Seme District (women, people with disabilities and youth) • a motor-focused business (tyres, shocks) to be run by young people in Noupoort • a youth business entity to acquire equity in a company manufacturing toilet paper and a company that bottles water. SECTOR INSIGHT State-owned enterprises favour SMMEs in procurement. • Laptop trolley demonstrates how ICT can help entrepreneurs. • A diamond incubator is passing on relevant skills. There is a plan to create a Provincial Incubation Strategy and planners are also looking into creating a specialist Renewable Energy Incubator to support smaller entrants into that growing sector. Many of the programmes in the Northern Cape that NORTHERN CAPE BUSINESS 2017/18 66

OVERVIEW support small, medium and micro enterprises focus on agricultural production and food security. Partnerships There are a number of active organisations in the Northern Cape, many of whom are in partnership with organs of the provincial government, and one another. The Gazelles programme falls under the Department of Small Business Development. In the Northern Cape the focus will be aligned with the cluster approach to key sectors: renewable energy; mining; agriculture and agri-processing. Seda is also a partner in the Kimberley incubation hub related to the Kimberley International Diamond and Jewellery Academy. So far the KIDJA has trained 45 students who now qualify to work in the diamond industry. Training is offered in technical skills related to jewellery manufacture and also in the skills relevant to starting a new business. Seda runs 49 incubators around the country. There are six branches of Seda in the province. The Northern Cape has a satellite office of the Seda unit known as the Zenzele Technology Demonstration Centre, offering technical and research support to small-scale mining and mineralrelated enterprises. The Company and Intellectual Property Commission (CIPC) is to set up a service point within the relevant provincial department, making it easier for SMMEs to register. Funding The National Empowerment Fund is assisting in the setting up of a provincial Enterprise Development Fund. An allocation of R5-million has been made to seed the fund, and private sector investors are expected to cooperate in creating a useful fund for new ventures. The small town of Kathu is not the first place one would think of in terms of tourism investment. Yet this is where entrepreneur Beyers Myburgh located his Urban Hotel. The commodity cycle that has reduced global demand for iron ore and other minerals means that the accommodation boom of a few years ago has tapered off, but business travellers still make their way to the Northern Cape, some of them in search of opportunities in the renewable energy sector. Myburgh’s first Urban Hotel is in Bloemfontein. Backing him as a 51% investor is the Industrial Development Corporation (IDC). Most of the hotel’s clients are business travellers and 24 jobs have been created. The IDC is better known as an investor in mega-projects but support is available, as in the case of Urban Hotels, for smaller investments that can create jobs. The biggest investment of the IDC in the Northern Cape is through its stake in a new manganese mine and sinter plant located near Hotazel. The IDC also has a 36.5% shareholding in Karsten Group Holdings, a diversified agricultural and exporting company with a primary focus on dates and table grapes. Karsten employs more than 4 000 people on a seasonal basis. Through the IDC’s Transformation and Entrepreneurial Scheme, a black economic empowerment project is under way at Kakamas, where emerging farmers are planting citrus. Vaal Community Citrus should create 1 330 jobs. The IDC is heavily invested in a large number of solar-power projects that have been approved in the province. The Masisizane Fund makes loan financing available in sectors such as agriculture and agri-processing, commercial, supply chain and manufacturing. It also offers training and technical support and funding to help businesses to comply with legislation. ONLINE RESOURCES Department of Small Business Development: www.dsbd.gov.za Department of Trade and Industry: www.dti.gov.za Development Bank of Southern Africa: www.dbsa.org Industrial Development Corporation: www.idc.co.za National Empowerment Fund: www.nefcorp.co.za Small Enterprise Development Agency: www.seda.org.za Small Enterprise Finance Agency: www.sefa.org.za 67 NORTHERN CAPE BUSINESS 2017/18

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