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Mpumalanga Business 2021-22

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FOCUS<br />

Steel products company<br />

powers ahead after Seda boost<br />

Mboshini Engineering has gained new markets and<br />

is making new products as a result of partnering with Seda.<br />

Sbusiso Sibuyi started Mboshini<br />

Engineering Steel (Pty) Ltd in 2016<br />

after the company he worked for in<br />

Lillydale closed its doors. The company<br />

belonged to his father and manufactured<br />

trailers, dumpers and burglar gates. Sbusiso<br />

bought the company from his father and<br />

hired him as a manager. With the skills he had<br />

acquired, he started manufacturing burglar<br />

doors and gates for the local community and<br />

the Kruger National Park.<br />

When the demand for burglar doors and<br />

gates increased, Sbusiso expanded his product<br />

range to steel window frames, door frames,<br />

trailers, steel structures, bull bars, aluminium<br />

frames and palisades. Few businesses were<br />

offering these products at that time in the<br />

local community and neighbouring villages.<br />

The business has increased its business assets<br />

by buying a tipper truck and a tracker-loaderbackhoe<br />

(TLB).<br />

Mboshini Engineering Steel operates from a<br />

warehouse in Lillydale in the Ehlanzeni District<br />

Municipality and employs three people (the<br />

owner included).<br />

Challenges<br />

• Lack of funding to develop the business<br />

• No business plan to access finance<br />

• Lack of marketing tools<br />

• The business lacked adequate business<br />

management skills or systems<br />

Interventions and solutions<br />

The client started working with Seda in<br />

September 2017 and the following interventions<br />

were commissioned:<br />

• <strong>Business</strong> management skills training<br />

• A bankable business plan was developed to<br />

enable the business to gain access to funding<br />

• Financial management training was facilitated<br />

by First National Bank<br />

• Seda facilitated the development of signage to<br />

advertise, promote and increase business visibility<br />

• Referral to ABSA Bank for funding<br />

• Advised to use digital marketing to market the<br />

company’s products and services<br />

• The client attended a five-day Empretec<br />

training course.<br />

Seda’s interventions benefited the client in<br />

the following ways:<br />

• The business created one permanent job,<br />

leading to a staff complement of four and<br />

sustained three jobs.<br />

• Turnover increased by 55%.<br />

• The business secured sub-tenders from the<br />

Department of Education.<br />

• Increase in client number and sales to such an<br />

extent that the company has had to open a<br />

business bank account and hire an accountant.<br />

• Submitted a business plan to ABSA Bank and<br />

received significant funding. The money was<br />

used to buy a TLB.<br />

• Accessed funding from the NYDA.<br />

• Received a sub-tender from the Bushbuckridge<br />

Local Municipality for the leasing of a watertank<br />

truck.<br />

Sbusiso Sibuyi says of the work done by Seda<br />

<strong>Mpumalanga</strong> in assisting him gain access to<br />

funding and to create the conditions for the<br />

growth of his business, “Seda is doing wonderful<br />

work in assisting even rural entrepreneurs.”<br />

MPUMALANGA BUSINESS <strong>2021</strong>/<strong>22</strong><br />

52

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