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OVERVIEW ment funding institutions, both of which report to the Department of Economic Development, Tourism and Environmental Affairs (DEDTEA): • Ithala Development Finance Corporation • KZN Growth Fund. Ithala is in the process of applying for a full banking licence. In 2015/16 Ithala financed 336 businesses and co-operatives, which led to an estimated 2 618 jobs being created. The agricultural sector was a particular focus area for the corporation. As of December 2016, a total of 129 businesses had been financed by Ithala, which also has a home-loan offering. Ithala’s commercial and industrial property portfolio of over onemillion square metres of lettable space makes it one of the biggest operators in the province. As a way of boosting township and rural communities, district warehousing facilities are being built using municipal and Ithala properties around the province. Small farmers and traders often struggle with storage so this solution will go a long way to assisting them to buy in bulk and consequently get some discounts on their purchases. The Small Business Growth Enterprise (SBGE) will run a pilot project, which will also contain a bulk-buying component, further assisting small enterprises. Another initiative aims to get small traders organised through the establishment of a provincial small traders’ association. The KZN Growth Fund Trust operates as a Debt Fund and an Equity Fund with a total of

R1.1-billion worth of assets under management. Among the Growth Fund’s most recent funding projects funded are: • SA Shipyards expansion, R42.8-million (150 jobs) • Dark Fibre Africa telecoms cabling installation, R193-million (4 201 jobs) • Link Africa telecoms, R65-million (500 jobs) • Mpact plant expansion, R200-million (1 760 jobs). The IDC provides finance across a range of sectors from agriculture to tourism. It has holdings in several companies with a presence in KwaZulu-Natal: 42.6% in Hans Merensky, a plantation and timber mill operator; 100% in Prilla 2000, a cotton-milling operation; and 85% in Foskor, which has a phosphoric acid plant in Richards Bay. The IDC also funds local development agencies such as the Hibiscus Coast Development Agency. All of the major banks have SMME offerings. Nedbank has an enterprise-development product that supports businesses with a turnover up to R35-million with at least 25% black ownership. Absa Bank’s SME Fund is driven by its Small Business Division and the Enterprise Development unit. Absa’s SME fund is available to fund projects from R5 000 to R3-million, and it can be given to start-ups or existing businesses. The target market is black-owned businesses which don’t have access to normal lending or banking channels. The Absa Development Credit Fund, a partnership with the United States Development Credit Authority, is another avenue for entrepreneurs. 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. 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.

CONTACT INFO Business Partners: Department of Small Business Development: Development Bank of Southern Africa: Industrial Development Corporation: Ithala Development Finance Corporation: KZN Growth Fund: KwaZulu-Natal Department of Economic Development and Tourism: National Empowerment Fund: Small Enterprise Development Agency: Small Enterprise Finance Agency:



KwaZulu-Natal Business 2017/18  

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