Gauteng Business 2017-18 edition

OVERVIEW
Development finance and
SMME support
Public and private funding is available for entrepreneurs.
National government has created an agency to spur the development
of SMMEs, the Small Enterprise Finance Agency (Sefa),
which falls under the Industrial Development Corporation. The
IDC provides finance across a range of sectors from agriculture
to tourism.
The Small Enterprise Development Agency (Seda) is an agency of the
National Department of Small Business Development, and gives nonfinancial
support to entrepreneurs through training, assistance with filling
in forms, marketing and creating business plans. It helps small businesses
draft applications for loan finance. Several of Seda’s technology incubators
are in Gauteng.
The Masisizane Fund offers loan financing at good rates and training
through its Business Accelerator programme. As a non-profit initiative of
the Old Mutual Group, the fund focusses on the cash flow of potential
businesses rather than insisting on security in the form of property or
something similar.
All the major banks have SMME offerings. Standard Bank’s Community
Investment Fund (CIF) initiative extends loans to informal businesses. The
CIF has distributed more than R7-million to more than 630 businesses
through its six funds in three provinces.
Nedbank has an enterprise-development product that supports businesses
with a turnover up to R35-million with at least 25% black ownership.
The Shanduka Black Umbrellas incubator helps entrepreneurs convert
their good ideas to sustainable business practice. DRA Minerals is putting
R3.8-million into the programme over two years.
Anglo American Zimele, which runs four enterprise development
and investment funds, helps start and expand SMMEs. Since the
CONTACT INFO
Gauteng Growth and Development Agency: www.ggda.co.za
Industrial Development Corporation: www.idc.co.za
National Empowerment Fund: www.nefcorp.co.za
Small Enterprise Development Agency: www.seda.co.za
Small Enterprise Finance Agency: www.sefa.org.za
Unemployment Insurance Fund: www.labour.gov.za
SECTOR INSIGHT
The Gauteng Provincial
Government spent R6-billion
in townships in 2016.
introduction of enterprise hubs,
the number of projects has grown
very quickly and Zimele has processed
more than R500-million in
loans and two applications are received
every day. One of Zimele’s
small business hubs operates out
of Vanderbijlpark.
The Gauteng Provincial
Government spent R6-billion in
townships in 2016, in a deliberate
attempt to get those areas into
the mainstream economy. A total
of 2 800 township enterprises are
now selling goods or services to
the government.
The goal of the provincial
government, with its partners
Harambee Youth Employment
Accelerator and various private
sector companies such
as Microsoft, is to reach half-amillion
young people through
the Tshepo 500 000 programme
by 2019.
The City of Johannesburg has
established seven SMME hubs
where office space, Wifi and
advice and training are available.
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