Issuu

CONTENTS SECTION A: GENERAL INFORMATION

1. List of Acronyms

2. From the Desk of the Chief Executive Officer

3. Executive Manager’s Executive Summary

4. Background of the Seda Technology Programme

5. The Seda Technology Programme Team

SECTION B: THE INCUBATION UNIT

1. The Incubation Unit

2. Highlights and Achievements for the Unit

SECTION C: THE QUALITY, STANDARDS AND TECHNOLOGY TRANSFER UNIT

1. The Quality, Standards and Technology Transfer Unit

2. Highlights and Achievements for the Unit

SECTION D: KEY FINANCIAL INFORMATION

1. Key Financial Information

SECTION A GENERAL INFORMATION

GENERAL INFORMATION REGISTERED NAME

Small Business Development Agency (Seda)

PHSYICAL ADDRESS

The Fields, Office Block A, 1066 Burnett Street, Hatfield, Pretoria

POSTAL ADDRESS

PO Box 56714, Arcadia, 0007

TELEPHONE NUMBER(S)

0860 103 703/012 441 1000

FAX NUMBER

012 441 2064

E-MAIL ADDRESS

info@seda.org.za

WEBSITE

www.seda.org.za

LIST OF ABBREVIATIONS ACO ACI AGSA APP ARC BA BBBEE BCEA BER BESD BICSA BSI CBD CCMA CEO CFO CIS COIDA CPE CPPP CSD DSBD EDD EDP EDTEA EE EIP ERM EU EXCO GDP GRAP HACCP HR IBASA ICT IDC IGMDP IMEDP

Assessment of Company Operations Algoa Cement Industries Auditor–General of South Africa Annual Performance Plan Audit and Risk Committee Business Advisor Broad Based Black Economic Empowerment Basic Conditions of Employment Act Bureau of Economic Research Basic Entrepreneurial Skills Development Business Information Centre of South Africa British Standards Institution Central Business District Council for Conciliation, Mediation and Arbitration Chief Executive Officer Chief Financial Officer Cooperative Incentive Scheme Compensation for Occupational Injuries and Diseases Act Critical Planning Exercise Community Public Private Partnership Central Supplier Database Department of Small Business Development the dtic Department of Trade, Industry and Competition Enterprise Development Division Entrepreneurial Development Practitioner Economic Development, Tourism and Environmental Affairs Emerging Entrepreneur Enterprise Incubation Programme Enterprise Risk Management European Union Executive Committee Gross Domestic Products Generally Recognised Accounting Practice Hazard Analysis Critical Control Points Human Resources Institute of Business Advisors Southern Africa Information and Communication Technology Industrial Development Corporation Incubation Governance Management Development Programme Informal and Micro Enterprise Development Programme

IOD Injury on Duty ISO International Organisation for Standardisation KZN KwaZulu-Natal MOA Memorandum of Agreement MOV Means of Verification MPC Monetary Policy Committee MTSF Medium-Term Strategic Framework NACH National Anti-Corruption Hotline NAMAC National Manufacturing Advisory Centre NDP National Development Plan NSF National Skills Fund NYDA National Youth Development Agency OHSA Occupational Health and Safety Act OHSAS Occupational Health and Safety Assessment Series PDI Previously Disadvantaged Individual PERA Premiers Entrepreneurship Recognition Awards PFMA Public Finance Management Act PSC Public Service Commission QMS Quality Management System RMI Retail Motor Industry SABIC South African Business Incubation Conference SABS South African Bureau of Standards SABTIA South African Business and Technology Incubation Association SANS South African National Standards SAQI South African Quality Institute SARB South African Reserve Bank SBD Small Business Development SCOPA Standing Committee On Public Accounts Seda Small Enterprise Development Agency Sefa Small Enterprise Finance Agency SHEQ Safety, Health, Environment and Quality SMME Small, Medium and Micro Enterprise STP Seda Technology Programme TTF Technology Transfer Fund TVET Technical Vocational Education and Training TWIB Technology for Women in Business UIF Unemployment Insurance Fund Wi-Fi Wireless Fidelity

2. FROM THE DESK OF THE CHIEF EXECUTIVE OFFICER Supporting innovative technology-based entrepreneurs to grow and improve The highest performing economies across the world are those that invested heavily in technology, innovation and the human capital that goes with it. Seda through its Technology Programme is one of the key technology-based programmes aimed at giving innovative technology-based entrepreneurs support to grow and improve their businesses, develop innovative ideas into bankable enterprises and enable small businesses through technological interventions access new markets. The COVID-19 crisis has brought a deeper realisation that the future growth of the South African economy and resilience of small businesses will rely heavily on technology-based enterprises. A number of studies have indicated South Africa is lagging behind its peers whose industries and economies rely on locally developed technologies. The South African government has set a target of establishing 270 operational business incubators in South Africa by 2024, with the 270 being made up of both private- and government-funded incubators. At the end of March 2018, there was a total of 74 incubators supported by Seda across the country. This is a target which we ready to achieve and are well on our way to reaching it with a target of eight for the 2019/20 financial year and exceeding this target with 20 new incubators. As part of the government’s recovery plan programme from the COVID-19 pandemic and lockdown, emphasis has been put on localisation and local manufacturing to bolster the economy and create much-needed job opportunities. Most importantly this is an opportunity to promote economic inclusion and participation of formerly disadvantaged individuals, specifically by facilitating the participation of youth, women and people with disabilities in the economy by providing a safe space and resources for innovative start-ups to develop. In the period under review 28 new centres were established under Seda’s incubation programme. Our network of incubators

and hubs grew exponentially in the underserviced rural and township areas. These incubators are aimed at increasing the incubation network in rural and townships such as Mabopane, Lephalale, Mogwase and Umlazi. The new Township hubs will be aligned to the proposed 3 tiered open incubation hub model (Co-Work, Co-Make and Co-Market Incubation Hub that will be aligned to the economic and market opportunities in the specific District nodes). Seda is positioning itself for a new role within the incubation ecosystem which is that of a thought leader in the Small Enterprise Development space and the business incubation eco-system in particular. Seda is aiming to address key challenges and gaps revealed in the ecosystem mapping exercise. Seda will focus on designing incubation models, managing national incubation standards, performing market assessments aimed at feeding opportunities to the ecosystem, influencing or directing private sector and government spend accordingly, and monitoring and evaluating the entire system, among other initiatives. We have made some strides in this regard with the development of a South African National Incubation Standard. The Standard will be completed in the 2020/21 financial year and will position Seda and one of only a few countries globally with such a standard. Seda is also working closely with the South African National Accreditation System (SANAS) to develop an accreditation scope for the certification system to be implemented by different conformity assessment bodies to certify all Incubators and Accelerators that operates in the SA Ecosystem. The clients-incubated TBIs/EIPs and CFERIs recorded a collective turnover of R429 million from the investment of R152 million for the entire Seda Technology programme. There is a high demand for assistance for the Quality, Standards and Technology support and we have done well increasing these support to enterprises through this instrument. However, due to the economic climate towards the end of the financial year with the COVID-19 pandemic, the current 1358 will have to be drastically increased to bolster the competitiveness of our manufacturing sector and increase market access for small business products and services. There is no doubt that the budgets are unlikely to increase and therefore partnerships remain key for Seda to be able fulfill its mandate and accelerate enterprise development. In the period under review some key partnerships were concluded which

brought valuable financial and non-financial resources to small businesses. Key among them were Cisco who announced a R140 million investment in South Africa to help make our country 4IR ready and the Gibela Rail Consortium who invested R20 million to establish a dedicated township incubator in Nigel, close to their state-of-the-art Rail Manufacturing plant. These are partnerships that are going to be prove crucial, not only for Seda but for the economy at large.

______________________________ MS Ntokozo Majola Accounting Officer

3. EXECUTIVE MANAGER’S EXECUTIVE SUMMARY Proudly mandated to implement government’s small business strategy The Small Enterprise Development Agency (Seda) is an agency of the Department of Small Business Development. Seda was established in December 2004 through the National Small Business Amendment Act, Act 29 of 2004. Seda is mandated to implement government’s small business strategy; to design and implement a strategy and common national delivery network for small enterprise development; and to integrate government funded small enterprise support agencies across all tiers of government. Seda’s mission is to develop, support and promote small enterprises throughout the country, ensuring their growth and sustainability in coordination and partnership with various role players, including global partners who make international best practices available to local entrepreneurs. In the period under review, Seda faced a number of challenges. Foremost among these was that we had to adapt and pivot our business to digital platforms because we are a technology programme for Seda and for the incubator and accelerator ecosystem. The second challenge was to coordinate and manage the incubator and accelerator ecosystem in SA in line with our revised mandate as an ecosystem facilitation partner or “Incubator of Incubators”. Previously we were only responsible for the incubators and accelerators within our portfolio (those that we had established, funded and supported) but in 2019 we received an expanded mandate from government to coordinate the incubator and accelerator ecosystem in South Africa as a whole. Our third challenge was the lack of resources we needed to be able to scale our work within South Africa to support (mainly)

township and rural areas and to scale our entrepreneurs to be able to provide high-end quality products and services within Africa and global markets. Of course, with challenges come achievements and I’m proud to highlight some of Seda’s successes here. The first achievement is that we managed to successfully and effectively pivot into digital platforms. In that process, we were able to design a National Digital Hub framework and implementation plan on how to develop tech start-ups to develop local, South African solutions within the ambit of the Fourth Industrial Revolution, both against 4IR technology verticals and within sector verticals. The second achievement is that the President set us a target of establishing four digital hubs over the past financial year, and we have succeeded in approving the establishment of up to six hubs located in underserviced districts and townships. In support of Government’s focus to revitalise industrial parks and special economic zones, the Digital Hub programme will be rolled out in line with the revitalisation programme. The underlying idea of establishing Digital Hubs is that cooperation between companies and business start-ups within a small area will boost innovation, not least in the digital age and the era of 4IR. In order for this to happen, Seda aims to create a network of Digital Hubs with an international reputation (Focal Points) and District/Township (Feeder Hubs) where national and international start-ups, innovators, investors and established companies work together and benefit from each other’s expertise. Our third achievement is the establishment of a national, South African Incubation Accelerator Standard, approved by the South African National Bureau of Standards, based on the work of a technical committee drawn from leading minds within the incubator and accelerator ecosystem. The reason we developed this standard was to ensure that we have a set of guidelines for the establishment of an incubator or an accelerator. We also set in motion the development of a certification system with which we can now ensure the quality of service that an entrepreneur will get when they enter into an incubator or accelerator programme in South Africa. Seda’s fourth achievement at a macro level is that we have managed to develop a township incubation model, within which

we approved and established 13 township incubators in all nine provinces in the period under review. Another significant success for us was our focus on our conformity assessment, product testing, product certification, product design and technology transfer incentive, and our ability to scale our technical incentive portfolio to support more entrepreneurs to enable them to acquire product and process technology, so as to improve their productivity, quality and competitiveness in their production of products and services within different sectors and sub-sectors. In addition to addressing the challenges we as Seda have faced and the successes we have achieved during the period under review, it is important to focus on our financial performance over the 2019-2020 financial year, and I am pleased to report that we have a clean set of books approved by the Attorney General and we have recorded a number of important financial achievements. We have maintained our financial spend within the allowable variances, neither underspending nor overspending on our budget, and we have managed to leverage a great deal of additional resources in terms of partnership funding to the tune of many millions of Rands from both private and public donors. These monies have been effectively spent within our financial systems to enable us to support additional incubators and to provide our entrepreneurs with technology and technical assistance. On the incubation side we’ve also managed to leverage some sound private sector partnerships with the Gibela Rail Consortium to establish the first rail technology incubator in South Africa, in the town of Nigel, and we’ve succeeded in obtaining funds from the European Union to provide budget support for digital technologies, digital hubs and competitiveness improvement within supply chains. This has enabled us to develop the supply side of small business’s products and services to supply into corporate and government supply chains. Further, we have developed a programme upon which such budget leveraging is based, called the Seda Growth Garage Enterprise Supply Development Programme. In conclusion, I personally would like to thank the Seda team. We have worked exceptionally well together to achieve the goals listed in this report, and I would like to thank each team member

for their efforts and input over the past year. I am privileged to serve as their acting executive manager. As a team, we would like to thank our shareholders, our principals and our board who have given us strategic guidance, and in particular we would like to thank the Minister for Small Business, Honourable Minister Khumbudzo Ntshavheni, who has provided a lot of direction and support in the implementation of our work and in our attempts to achieve the vision we have for the economy, an economy that is transformed and agile in its ability to develop enterprises in the productive sectors of the economy. To the general public, and specifically to SMMEs in South Africa, I would like to say that what lies before us is a challenging, yet exciting period of change in which we will have to reconstruct and redesign the economy to be inclusive, knowledge and innovationbased as well as enabling us as South Africans to develop and produce products that we can consume locally and scale into the rest of Africa. As such, the issue of localisation is very important for us going forward, and we need entrepreneurs who are able to produce

products across different value chains and supply chains, in order to gain access to supply chains throughout Africa and all across the globe. We see opportunities within the African Continental Free Trade Area (ACFTA) for South African entrepreneurs to produce products for export into Africa, and we see a lot of scope for innovation, for competitiveness improvement and for the diffusion of technology and digital technology in particular – to enable us to be effective and efficient in where we are going as a country. I look forward to building on the successes we as Seda have enjoyed over the past year and achieving even greater accomplishments in the years to come.

______________________________ Tervern Jaftha Acting Executive Manager

4. BACKGROUND OF THE SEDA TECHNOLOGY PROGRAMME On 1 April 2006, the Department of Trade and Industry (the DTI) created the Seda Technology Programme as a special ringfenced programme of the DTI, housed within the Small Enterprise Development Agency (Seda) at the DTI campus in Meintjies Street, Sunnyside.

3. Promote the use of quality and standards by SMMEs;

The Seda Technology Programme was created as part of government’s national strategy of consolidating and rationalising small enterprises support interventions across the different government departments and government agencies, with the overall objective of improving the delivery of small business support services to entrepreneurs and small enterprises.

6. Promote entrepreneurial activity and success of identified target groups, particularly women and youth; and

As part of this process, the DTI decided to incorporate the activities of the six entities of GODISA (a tripartite supplier development fund between Anglo America, Transnet and Government); the three DTI Incubators; the National Technology Transfer Centre (NTT); the Technology Advisory Centre (TAC); the technology transfer activities of the Technology for Women in Business Programme) and the SMME support activities of the South African Quality Institute (SAQI) into a single programme, called the SEDA Technology Programme.

5. Improve SMME’s competitiveness;

7. Reduce the failure rate of SMMEs. These seven areas are identified as the main reasons why technology-based SMMEs fail during the first three years of their existence. These areas will be addressed by the three main divisions of the Seda Technology Programme, each of which is uniquely designed and positioned to transfer technologies and provide additional business development and quality support services to entrepreneurs and SMMEs in specific market sectors. Three main divisions of the Seda Technology Programme are:

In response to the DTI’s National Industrial Policy Framework and the focus areas of the six previous entities, the Seda Technology Programme will:

• Technology Business Incubation;

1. Increase the accessibility to, and utility of, technologies and management support for SMMEs, through structured platforms such as technology business centres;

• Technology Transfer and Innovation Support.

2. Facilitate the acquisition and transfer of technology to SMMEs, particularly those operating in the second economy;

4. Improve SMME performance and productivity;

• Quality Systems and Conformity Standards; and

The Seda Technology Programme’s vision and mission statements clearly reflect its methodology to achieve the objectives of creating and enhancing sustainable growth of SMMEs.

Vision

Mission

The vision of the Seda Technology Programme is to become an internationally recognised Centre of Competence that develops innovate technology-based platforms for the creation of sustainable, globally competitive SMMEs.

The mission of the Seda Technology Programme is to develop innovative technology-based platforms for the creation of sustainable, globally competitive SMMEs that contribute towards the accelerated growth of the South African economy.

5. THE STP TEAM

Bahwelang Mahlangu

Can-see Masilela

Amantle Phalane

Martha Mamoepa

Elia Netshisaulu

Kgaladi Thema

Mduduzi Khumalo

Malembe Mtsweni

5. THE STP TEAM

Nosipho Ndamane

Rhulane Hobyani

Richardt Kok

Elizabeth Matshega

Fhatuwani Tshikovhi

Fortunate Mona

Bongani Ntombela (Acting Senior Manager Quality and Standards and Technology Transfer)

Hellen Mthombeni

Hilda Ndala

Lebogang Moletsane

Theresa Albers

Reabetswe Djan

5. THE STP TEAM

Mandisa Maseko

Mfundi Maku

Thabo Nkalane

Ringeta Mashimbye

Nonhlanhla Shembe (Acting Senior Manager: Incubation)

Zola Sithole

SECTION B THE INCUBATION UNIT

1. THE INCUBATION UNIT Description The Seda Technology Programme Incubation Unit offers a three-year programme designed to strengthen technology commercialisation and harness the entrepreneurship of the technology community in South Africa.

Qualiﬁcation Criteria Anybody with a viable business idea or any registered small micro or medium enterprise (SMME) that is struggling to grow. Each of the 72 Seda-supported Incubators has its own Incubate recruitment/selection process that is unique to their sector. Applicants must contact their applicable Incubator for its recruitment critera.

Beneﬁts to SMMEs Through Incubation, enterprises develop skills, knowledge and markets. These improvements are intended to lead to increased profitability and growth. SMMEs will be able to employ more people and enter new markets with cutting-edge products and services.

Nonhlanhla Shembe (Acting Senior Manager: Incubation)

2. HIGHLIGHTS AND ACHIEVEMENTS FOR THE UNIT The Incubation Unit addressed a number of challenges and achieved significant achievements over the period under review, including the following: •

Industry 4.0 readiness session for Manufacturing SMMEs held • Automotive hub build completed in KwaZulu-Natal • New centre for entrepreneurship & rapid Incubator (CFERI) approved • Seda market facilitator/lead incubator set up • South African Business Incubator Standard developed • Department of Communications and Digital Technology • Department of Trade and Industry • Gibela • Department of Defence • Services Seta – ECDi – Business Incubation Technical Task Team • Incubation • The Centres for Entrepreneurship Rapid Incubation Programme • The Enterprise Incubation Programme • Department of Small Business Development: EU Budget Support • Challenges with the EIP Programme • CFERI • STP Knowledge Platforms • Cisco • Challenges to the Enterprise Incubation Programme • South African National Air Force • City of Ekurhuleni • North West (Itsoseng Handicraft Center) Incubation Programme • The eThekwini Metro • Mzansi Aerospace Technologies • Invotech • Sarebi • TuksNovation • Savant • BBI • Sanami

• BICSA • CFERIs • False Bay • Orbit • EWC • Esayidi • VUT • Motheo • Digital Hubs • EU Budget Support Programme • The Development of a Business Case for the SoftstartBTI 4IR Hub • The Enterprise Supplier Development Competitiveness Improvement Programme • The Establishment of Two Township-based Feeder Hubs • Gibela Business Incubation Hub • Incubation Knowledge Platforms and Stakeholder Engagements • Vodacom Sites • Stakeholder Engagements: Microsoft SA • Stakeholder Engagements: EOH • Stakeholder Engagements: Rand Water • Stakeholder Engagements: Mzansi Aerospace Technologies • Additional Stakeholder Engagements • Jewellery Cluster • Incubation Book Series – Journal • Drone Accelerator Pilot Project • District Mapping • Performance Results Quarter 4 • COVID-19 • Incubation Performance Highlights: Lepharo • Incubation Performance Highlights: iHUB • TuksNovation • Chemin • BBI • LJBI • EJP • Vhembe TVET CFERI • False Bay • DUT

Industry 4.0 Readiness Session for Manufacturing SMMEs Held

New Centre For Entrepreneurship & Rapid Incubator (CFERI) Approved

Seda partnered with the Manufacturing Indaba and facilitated Industry 4.0 Readiness Sessions for SMMEs in Manufacturing. The events took place in Port Elizabeth and Durban.

A new Centre For Entrepreneurship & Rapid Incubator (CFERI) was approved for establishment in partnership with Ikhala TVET College.

The results are now being utilised by the Seda Technology Programme to finetune the Industry 4.0 Readiness Assessment Tool.

The establishment is in progress and the building is located in Ezibeleni Township, Queenstown.

R1.418 million was leveraged from the DTI Sector Specific Assistance Scheme for 16 SMMEs from our Tech-based Incubators to participate in the GITEX Future Stars International Showcase in Dubai, UAE.

Further Requests for Proposals have been published soliciting partnerships with 9 TVETs colleges.

Seda Market Facilitator/Lead Incubator Set Up

Discussions with eThekwini Municipality on the establishment of the Clothing and Textile Hub reached conclusion and Seda presented to Council on 10 October 2020 for final resolution on the support.

In line with the new recommendation for Seda to be the Ecosystem Facilitator and Incubator of Incubators, an Incubation ecosystem mapping was conducted during the period under review and established that South Africa has a network of 244 Incubators, Accelerators and Technology Hubs.

Automotive Hub Build Completed in KwaZulu-Natal

The objectives of the ecosystem mapping are:

In partnership with eThekwini Municipality, the Automotive Hub build has been completed in Umlazi Township, KwaZuluNatal, and awaits installation of equipment. Recruitment of entrepreneurs was completed in November.

•

The Gibela Incubator establishment site has been identified in KwaThema Business Park in Nigel and agreed with the City of Ekurhuleni to utilise their building with discounted rental. Recruitment of staff is in progress and the governance board has been established. The ICT Incubator in Port Elizabeth, in partnership with Propella, has been identified subject to moving the site to the township. In partnership with eThekwini Municipality, the building for the Manufacturing Hub at 128 Anton Lembede Street was completed in November.

To create a comprehensive multi-dimensional database of all Incubators in South Africa, whether funded by Seda or not;

• To provide geographic, quantitative and qualitative dimensions to the data collection, analysis and interpretation of the data collected; • To form a basis for more informed and appropriate policy, standards and programme development with regard to all aspects of Incubator operations; • To better understand the number and type of Incubators by province and municipal area, i.e. geographic distribution; • To better understand the number and type of Incubators by sector, entity type, funding and governance models and various other metrics;

•

To carry out a gap analysis of actual and normative Incubator metrics;

•

To confirm and inform the need for development of a relative set of standards for Incubators; and

•

To determine the level of growth of the ecosystem to enable better planning, coordination and support to Incubated enterprises.

On 25 September, a dedicated Seda CEO roundtable dialogue session was held in three cities (Johannesburg, Cape Town and Durban), via live link interacting with just over 100 privately funded Incubators, Accelerators and Tech Hub Managers and CEOs. The interactive session was used to explain Seda’s new mandate and to solicit ideas on how Seda can better facilitate and coordinate its work and provide better support to all ecosystem builders. This role of Seda was well received by partners. The next phase is on agreeing on common reporting metrics. We concluded the following projects and strategic partnerships: •

Partnership Agreement with the City of Ekurhuleni in support of the Gibela Business Incubators (GBI) and EWC CFERI;

• Partnership Agreement with the North West Department of Economic Development, Environment, Conservation and Tourism (DEDECT). This new agreement included an R8 million co-funding investment for the new Mafikeng Digital Hub and Leema Township Incubation Hub; •

In partnership with SoftstartBTI we concluded a co-funding partnership with Mangaung Metro for the establishment of the Botshabelo Digital Hub to be located in the Botshabelo Industrial Park. The Municipality reserved an amount of R3 million in the 2019/20 financial year towards the new hub; and

•

Chemin Incubators supported by Seda concluded a co-funding partnership with the Jobs Fund towards the establishment of the National Cosmetics Accelerator Programme.

2O MIL

Total fundable investment is over 20 Million.

This initiative will improve manufacturing capabilities of entrepreneurs in the Chemical and Cosmeceutical sector and will enable entrants to enter the retail market.

South African Business Incubation Centre Standard Developed Seda has embarked on the development of the South African Business Incubator standard with following objectives in mind: • To develop a South African national standard for certification by South African Bureau of Standards (SABS) and this in turn will be a certification standard for all South African Incubators and Accelerators. All will be measured and evaluated against this standard in terms of promoting entrepreneurship and developing small enterprises in such a way that will improve the economic growth rate and create further sustainable jobs; • To leverage the standard as part of Seda’s role as a leader in the South African entrepreneurship ecosystem and a national facilitator of Incubation to create a framework to expand the Incubation network with private sector Incubators, higher

education Incubators, new Incubators in townships and rural villages and Digital Hubs; and • To develop a draft standard for submission to SABS. Good progress has been made with the development of the Business Incubators and Accelerators standards.

Department of Communication and Digital Technologies SEDA continues to work with the Department of Communication and Digital Technologies (DCDT) on the broadband connection to all Seda Incubators and in particular the existing ICT Incubators and new township digital hubs. SEDA is also working with the DCDT on the development of an Incubation framework for Electronic Equipment Repairs in the South African Telecommunications Sector. The new centre will be developed in partnership with Screamer Electronic Services and Samsung through Samsung’s Equity Equivalent Programme (EEP). Through SoftstartBTI we have also proposed rolling out a township Coding Programme targeting township schools.

Department of Trade and Industry Seda continues to work with the DTI on the Midrand Hub (the rezoning of the land into an industrial park) and support the township Digital Hubs rollout and the establishment of Incubators in Industrial Parks and Special Economic Zones. We have also started a discussion during the period under review with the DTI on the status of the Design Institute (DI) and possibilities of transferring the DI to Seda for implementation.

Gibela During the period under review we commenced work on the first phase of the agreed implementation plan.

• The Gibela Business Incubation NPC was registered; • We reviewed three possible sites for the Incubator and have proposed the Kwa-Thema Business Park as a possible site; • We commissioned a feasibility study for the Nigel area; • We requested an economic study done by the City of Ekurhuleni (COE) on the Nigel area to inform the business model that will inform the new Incubator; and • We partnered with the COE to co-fund the Incubator with Seda and Gibela.

Department of Defence During the period under review we presented the Sead Growth Garage model to the Department of Defence (DOD), in particular the Taba Tshwane Base. The idea is to look at a supplier development programme aimed at building suppliers among the army wives and youth across all the army bases to take advantage of the R600 million annual spend on goods and services, specifically food products consumed on a daily basis. The idea is to look at the establishment of a business Incubator following the CFERI model.

Services Seta – ECDi – Business Incubation Technical Task Team During the review period we presented the different Seda Incubation models to the Business Incubation Task Technical Team (BITTT) aimed at finding and developing a hybrid tenant Incubation model for the three Incubation sites funded by the Services Seta. The three approved sites to be remodelled are: • The Sekunjalo Training Centre just outside Zwalitsha Township, East London, in partnership with the Buffalo City Municipality and Lovedale TVET College; • Swartklip, Western Cape, between Mitchells Plain and Khayelitsha in partnership with the False Bay TVET College; and

• QwaQwa, Free State in partnership with the Maluti TVET College.

manufacturing facility and laboratory as well as operational funding for three years.

Incubation

TuksNovation’s clients Multifractal Semiconductors in their Virtual Incubation Programme secured $3 000 in investment from international venture capital funder Starfinder.

During the period under review the Incubation network was reduced from 76 centres to 73 Incubation centres due to the nonrenewal of both the Seobi and ICFE MOAs. As part of the Unit’s planning process aligned to Government’s aspirations, a new three-year implementation plan was developed, focusing on integrating the Seda Technology Business Incubators (TBI), Centres for Entrepreneurship Rapid Incubation (CFERI) and Enterprise Incubation Programme (EIP). The integration will lead to a better alignment of the different Incubation support programmes against a structure performance framework and medium-term estimates ending 2022. During the period under review we concluded a three-year partnership agreement with the EU Employment Promotion through SMMEs Support Programme for budget support to: • Establish four ICT Digital Incubation Hubs in underserviced provinces; • Commission the development of a business case for the establishment of focal points for the 4th Industrial Revolution; and • Pilot a supplier development programme aimed at developing suppliers for both Government and corporate supply chains. We started phase 1 of the five-year Gibela Rail Business Incubator contract, participated in the SABTIA AGM and appointment of the Associations New Board and participated in the PWC Incubator 4.0 Strategy Design and 4IR Enterprise Development Framework Workshop and IGMDP Cohort 2 graduation ceremony. Chemin also received Jobs Fund approval for R20 million to establish a Cosmetics Enterprise Accelerator (CEA) in Modderfontein. The funds will be used to capitalise the CEA

The Centres for Entrepreneurship Rapid Incubation Programme During the period under review we hosted our first adjudication panel meeting and Ikhala TVET College was approved R3 million to establish a CFERI in Queenstown, Eastern Cape. The new CFERI will focus on the Agriculture and Engineering sectors. The CFERI programme in its 3rd year has matured; this is evident in the programme’s ability to attract funding from other funders and the use of the service flow model by colleges not funded by Seda. • EWC CFERI raised R5 million in funding from INSETA to implement an entrepreneurship training programme; • Orbit CFERI received R2 million in funding from UIF which will be used for generic enterprise development and training; and •

DUT CSERI also ran a very successful Enterprise Development Programme with Cataler Pty. Cataler Pty operates in the automotive sector in Durban working with Toyota and VW. The purpose of the programme with the CFERI was to develop SMMEs to become suppliers the automotive industry.

The Entrepreneurship Development in Higher Education (EDHE) Lekgotla took place in Durban from 25 to 28 June 2019 and DUT CSERI was involved in the planning and execution of the Lekgotla. Seda participation over the four days was aimed at positioning its enterprise development frameworks in higher education institutions and supports the development of the EDHE programme.

The Enterprise Incubation Programme For the period under review the Enterprise Incubation Programme (EIP) was aligned to Seda’s budget and reporting framework. The annual target for all the EIP Incubation Centre approved for 2019/20 was prepared and submitted to the office of Seda Training Programme Executive Manager for approval. The following EIP Incubators were approved for the 2019/20 financial year: • The South African Creative Industries Incubator (SACII); • Matsila Incubation Centre; • 20 Media Incubation Centre; and • Property Point Incubation Centre. During the period under review the Incubation Unit has also recommended to the Incubation Review Committee and Adjudication Committee that the MOAs signed with the following Incubators funded by the Department as part of the EIP pilot should not be renewed in the 2019/20 financial year: • JICP (Urban Agriculture); • Nwanedi Generation Incubation Centre; and • Nomakhwezi Incubation Centre. It is also important to note that the following new Incubators were presented to the Review Committee during the period under review, with only the Ford and Wakanda Incubators being recommended for presentation to the Incubation Adjudication Committee: • Ford AIDC; • OneBio;

The Incubation Unit received two unsolicited proposals for review under the EIP Programme that were reviewed in line with the EIP Guidelines. • The Maritime Incubation Programme did not meet EIP requirements and was not recommended for adjudication; and • The Propeller Incubation Centre was recommended for adjudication. For the period under review the Incubation Unit recorded the following performance results against the set targets: 111 new SMMEs were created, 1 388 clients were supported; and the clients Incubated in our TBIs/EIPs and CFERIs recorded a collective turnover of R142 661 686 and created 336 jobs.

Department of Small Business Development: EU Budget Support The Workplan and Programme 3 - Improved SMME Competitiveness and Compliance to Market Requirements was approved for funding. The request for proposal for the four feeder hubs was concluded in consultation with the DSBD and was published in different national newspapers and Seda social network platforms. We also working with the Department on partnership opportunities with NYDA and the Department of Defence.

Challenges with the EIP Programme The following challenges were noted during the period under review: • EIP Incubation Centres contract clients based on the funding circle for which they are approved (year-on-year), not in line with their Incubation model;

• Khaya’s Kitchen; and • Wakanda.

• Lack of understanding of how to deploy a structured Incubation programme following a structured continuum;

• Lack of understanding of Incubation policy and in general an acceptable enterprise development model with the enterprise core to its success;

review the 3rd IGMDP Cohort (the last of the IGMDP pilot phase) completed their learning programme and practical assignments.

Cisco • No proper governance and adequate operational structure; and

• The appointment of staff, in particular centre managers and business advisors, is being delayed;

During the period under review Seda has increased its partnership discussion with Cisco after the company announced a R140 million investment in South Africa to help make South Africa 4IR-ready. The investment includes the establishment of seven more Incubators to complement the existing two based in Gauteng and KZN. Seda follow-up discussions with the Multinational Technology Firm resulted in a visit by the CEO of Seda to one of the Incubators based at the Innovation Hub and a detailed discussion on joint planning of the seven new Incubators, Coding Programming in all TVET-based CFERIs and Cisco Technology deployment in all the new district-based Digital Hubs.

• Procurement of equipment Makerspaces; and

Challenges to the Enterprise Incubation Programme

• Lack of adherence to National Treasury Regulations.

CFERI The following challenges were noted during the period under review:

and

deployment

the

• Governance of the steering committees. During the period under review the Incubation network has seen significant changes with approval of Ikhala TVET College as a Centre for Entrepreneurship Rapid Incubator (CFERI) and recommendations to the Incubation Steering Committee during its inaugural meeting that four EIP-funded Incubators be cancelled.

STP Knowledge Platforms During the period under review we hosted a Knowledge Brown Bag session focused on creating a broader understanding of the 4th Industrial Revolution (4IR) as an era, with Professor BabuPaul from the University of Johannesburg hosting a discussion with participants from Seda and its supported Incubators on 4IR and where we are as a country. The session looked at perceptions of 4IR and its importance in the context to Seda operations, current gaps and opportunities and steps that needs to be taken to progress the organisation. During the period under

It’s concerning to report systemic governance and leadership challenges in the supported Incubators. Weaknesses in corporate governance practices and stakeholder management processes have the potential to expose supported Incubators in our portfolio to several risks. We have also noted a direct correlation between weak governance and performance of these Incubators and would advise that serious attention is directed to the governance reforms recommended in 2016. For the period under review the Incubation Unit recorded the following performance results against the set targets: 181 new SMMEs were created; 2 140 clients were supported; and the clients Incubated in our TBIs/EIPs and CFERIs recorded a collective turnover of R282 345 759 and created 808 jobs. The Incubators graduated a total of 51 enterprises during the review period.

South African National Air Force Preliminary discussions were held with the South African National Air Force to look at developing SMMEs on the different

air bases in South Africa. This discussion was aligned with the discussion we had with the South African National Defence Force in the first quarter.

City of Ekurhuleni We have entered into a conversation to expand the current Seda MOU to include a separate MOU in relation to the Gibela Business Incubator and a possible digital hub for the city.

North West (Itsoseng Handicraft Center) Incubation Programme The Department has entered into a partnership discussion to establish a Mix Incubation Centre in the Itsoseng Township near Lichtenburg in the Ditsobotla Local Municipality. The new Incubator under discussion proposed that the Department and Seda Co-Invest (50/50) in setting up a Technology Demonstration Incubation Centre or Open Hub (Co-work, Co-Make, Co-Market). The Department has committed R3 million for the 2019/20 financial year.

The eThekwini Metro

Abundance Dusty Velvet (ADV), a client of Invotech, is a ﬁbreoptic systems company providing solutions to corporate, mining and end-users in the Telecommunications, CCTV, Access Control as well as Process and Data Communication Industries. ADV has been providing fibreoptic solutions to various industries across South Africa. Initially, the primary focus of the company was on installation and fusion splicing of optical ﬁbre, but as demand for total Turnkey Solutions increased, the company expanded and diversified. ADV is a 100% black, 100% women and 100% youth owned company. The company was established to focus on the Telecommunication Sector, leveraging its human capital and building its brand and customer base to win in the marketplace. ADV has successfully tendered for a lucrative tender of R1.2 million to install cell masts.

The eThekwini Metro is proposing the establishment of a Manufacturing Business Incubator focusing on Supplier Development in eThekwini. The expected establishment cost is R5 million with the eThekwini District Municipality providing the refurbishment of an appropriate building. It is expected that the Incubator will be able to accept 100 Incubatees at inception.

Sarebi

Mzansi Aerospace Technologies

The entire unit was built and tested in Cape Town before being shipped to Malawi. The mini-grid was part of a larger project sponsored by Peachtree Church of Atlanta Georgia, USA, where a girls’ dormitory was added to the school as a solution aimed at increasing access to education by making class attendance safer and easier for young women.

The Incubator has started discussions with Mzansi Aerospace Technologies to pilot a Drone Accelerator Programme in three Seda-supported Incubators: Gauteng (EWC CFERI), KZN (KwaMashu Digital Hub) and Cape Town (False Bay CFERI). The idea is to replicate the Drone Accelerator Programme in all the TVET-based CFERI and new Digital Hubs.

Invotech

Sustain Power has finished the installation of a solar power mini-grid at the Sokola Village school in the remote mountains of Malawi.

Green Building Consulting Group has been awarded a R1 million contract by the World Bank to provide advisory services to a

number of government departments on greening their buildings and assisting with energy efficiency projects. Praecautio’s Water Testing Kits have been used by the University of Cape Town’s 10th Annual Peninsula Paddle. The Peninsula Paddle is a 15km journey from Muizenberg to Milnerton, paddling and dragging kayaks through canals, rivers and “vleis” (marshlands). The event highlights how much solid waste, plastics and material is disposed of in waterways across the city. The Praecautio-manufactured kits performed well and gave accurate, on-the-spot results. Praecautio is also exporting the kits via a German public benefit organisation to Vietnam.

TuksNovation Aviro Health is a mobile phone-based healthcare platform that helps patients navigate healthcare and locate support services Incubated in the Acceleration Programme. It received a R1,7 million investment for equity share from a private UAEbased investor. TuksNovation is assisting in reviewing Aviro’s outsourced work agreements to ensure that company’s IP is protected. Dr Lukas du Plessis and his partner Conrad Mahuma of Protea Machine Tools secured angel investment funding to the value of R1,1 million to build a beta prototype of their hybrid five-axis machine tool.

Savant

The product has attracted the attention of a few corporate chains, including Shoprite, Makro and Orange Telecom (UAE). The team is considering next round funding.

BBI llen Boikanyo, a client of BBI, through TTF constructed a new biodiesel plant. The new two-ton reactor plant has two settling tanks, one circulation tank and the final biodiesel storage tank. The plant can process six tons of biodiesel daily. Through the National Skills Fund, BBI constructed a new 20 litres per hour oil extraction plant. The plant is equipped with a cleaning section and an oil press. About 1 000 litres of crude oil were extracted since the commissioning of the plant.

Sanami During the period under review Sanami received an approval of funds of R240 000 from OXFAM South Africa. The funding is meant for business plan development of ten Incubatees as well as two business-related training sessions for Incubatees. Shadows of Hope, Sanami’s client, has been approved funding for a tunnel, borehole and fencing. Soil Comforters, another client of Sanami, also received funding from ECDC for a three-phase miller to produce animal feed with maize.

BICSA BICSA hosted a delegation from Malawi for a study tour to learn more about BICSA’s Incubation model. The delegates represented three organisations as follows: • Community Energy Scotland (CES);

Intelligent Safe Technologies is a start-up in the business of manufacturing smart, integrated security safes for highrisk, high-value retail environments. The units have garnered significant industry interest, with sales being generated and orders fulfilled in the Western Cape as well as across the country.

• Community Energy Malawi (CEM) and • Community Savings and Investment Promotion Cooperative Union (COMSIP).

CFERIs

Orbit

The Centre conducted a business information sharing session between Northeastern University in the USA and CFERI clients as well as DUT Enactus. CSERI, in partnership with WearSA, hosted a two-day Entrepreneurship Fashion Bootcamp for DUT students. The Centre connected five clients with Standard Bank for a Business Pitching Workshop. The Centre was able to source funds from two external institutions for CSERI clients. These include Zibeuty Events and Sphosh who both received an amount of R50 000 from NYDA.

Orbit was successful in sourcing intensive entrepreneurship training with NEF which includes 20 Incubatees. The training is for six weeks after which a pitching event will be held for Incubatees to pitch their business ideas to NEF representatives with a chance of accessing funding if the ideas qualify.

Five clients of the centre received approvals for external funding as follows:

Name of Company Pursuit of Perfection Zibeauty Events Umgibe Organics

Anatoth Solutions Lushanyaza

Funder

Amount Approved

Raiz Corp

R160 000

Ithala

R50 000

NYDA

R50 000

YGAP

R400 000

GIZ

R310 000

Ithala

R50 000

TIA

R200 000

eThekwini Municipality

R92 000

False Bay The Centre continues to get visits from both local and international expressions of interest/delegations. False Bay was a winner in the Western Cape region in Productivity SA (public sector). The centre is now confirmed as an implementing partner for WR SETA’s training of 75 individuals and cooperatives.

EWC The Centre commenced with the Samsung New Venture Creation Level 2 learnership. The programme will run for ten months and after completion the students will be assisted to start businesses in cell phone repairs. The Centre also commenced with the training of 21 students in App Development and Social Media Services funded by INSETA. The Centre was approached by Mzansi Aerospace Technologies to consider providing a Drone Start-up Accelerator Programme and the Centre is in a process of finalising the partnership.

Esayidi Esayidi held a graduation ceremony where 13 SMMEs graduated from the programme.

VUT In line with the new vision of the ICT sector, the Centre has commenced with the cell phone repair component. A Cohort of candidates for this programme was recruited and underwent four weeks of technical training, followed by a week of entrepreneurship and business management training.

Motheo The centre held a graduations ceremony where nine SMMEs

graduated from the programme and were gifted with 10” tablets sponsored by Novabyte. During the period under review the Incubation network has seen significant changes with the review and recommendation for approval of an additional ten township Incubators in the underserviced provinces of Free State, Northern Cape, North West, Limpopo, Mpumalanga, and the townships of Gauteng and Western Cape and an additional Automotive Support Hub in Umlazi (KwaZulu-Natal), eight Centres For Entrepreneurship Rapid Incubators (CFERIs) in Universities, TVET Colleges and Universities of Technology in Limpopo, Eastern Cape, Mpumalanga and the John Taolo Gaetsewe District of Kuruman in the Northern Cape, amongst others. The Universities and Colleges recommended are strategically located in underserviced districts and are aimed at enhancing Seda points of presence to better build and service enterprises. We also received notice of one EIP withdrawal: the SA Creative Industries Incubator (SACII). We hosted a five-day Incubation Review Committee Meetings in November 2019 where all the existing supported Incubators were reviewed for long term sustainability outside of Seda funding. During the review period we tested the new Incubation ecosystem database of 244 Incubators, Accelerators and Hubs with three calls for proposals: • Township Hub; • Small Business Innovation Fund (SBIF); and • Technology Transfer Fund. The database was used to test Seda’s readiness as a market facilitator and Incubator of Incubators, inclusive of all Incubators, Accelerators and Hubs in South Africa.

We are happy to report that two of the calls have seen positive results with three privately funded Incubators being approved for SBIF funding from Sefa, and that two Seda-supported Incubators received additional investments from the SBIF fund of Sefa. Black Umbrella Lephalale and Propeller were also recommended for Seda Township Incubation funding during the period under review. We hosted two Ministerial events at two township-based Incubators: • The Ministerial visit to Furntech in KwaMashu and the site of the new KwaMashu Digital Hub during the launch by the President of the new District Base Development Model; and • The Ministers announcement of funding instruments for SMMEs was hosted by the Ekurhuleni West TVET College, Centre for Entrepreneurship Rapid Youth Incubator (CFERI) in Katlehong township.

Digital Hubs We reviewed an additional four Digital Hub proposals from the provinces of North West and Mpumalanga and the Incubation adjudication committee recommended two proposals for approval: • North West Mafeking Innovation Digital Hub; and • 4IR Emalahleni Digital Hub. Both Hubs received support from both private and public stakeholders in the townships and districts where they will be based.

EU Budget Support Programme As part of Seda’s allocation from the EU through the Department of Small Business Development (DSBD), the Incubation Unit

focused its efforts on achieving the contracted strategic objective and key result area of improving the competitiveness of SMMEs and their ability to meet the procurement requirements of large multinational/local corporations, government and state-owned enterprises.

The Development of a Business Case for the Softstar tBTI 4IR Hub During the period under review we concluded the RFP process and appointed a service provider to build a strong business case, business plan and investment prospects for the Africa 4IR Hub Development.

The Enter pr ise Supplier Development Competiti venes s Improvement Progr amme During the period under review we recommended approval of the following two Incubators to manage two Enterprise Supplier Development (ESD) programmes: • Lepharo Base Metals Incubator: The Incubator has been recommended to run an ESD pilot for Gibela Rail Consortium, supporting 11 small suppliers of Gibela. The total allocated recommended cost for the pilot is R381 018; and • Chemin Incubator: Chemin has recently strengthened its focus on supporting SMMEs in the cosmetics value chain in order to diversify the Incubator’s portfolio.

This has led to challenges faced by the cosmetics SMMEs being identified by the Incubator.

One such challenge is with regards to manufacturing facilities.

The majority of SMMEs Incubated at Chemin manufacture from their kitchens and this is a major barrier to market entry

as they cannot produce enough volume to service the demand of the market.

A few of the SMMEs use contract manufacturers which was also identified as a challenge, as these facilities are expensive and not accessible for SMMEs.

To overcome some of the identified challenges, Chemin clustered five small manufacturers together to seek funding assistance to capitalise their own shared manufacturing facility. During the review period these SMMEs each applied for a portion of the value chain of a manufacturing plant from the Technology Transfer Fund (TTF). Chemin will provide a building in the Modderfontein facility to host the plant equipment as a shared manufacturing facility compliant with Good Manufacturing Practice (GMP). The facility will also service other SMMEs within the Incubation programme as well as private companies, thereby generating revenue for the cluster. This has the potential to solve not only the involved SMMEs’ problems but the entire cosmetics manufacturing SMME community. The EU Programme on competitiveness improvement is catalytic in nature and requires of the project implementer to consistently seek other value adding partnerships in delivering on the project and ensure sustainability post the EU investment. The Incubation Unit and the Technology Transfer Units of STP presented a joint solution to the challenges noted by Chemin and their clients to both the TTF and Incubation adjudication committees. The committees recommended for approval an amount of R3 013 685 for the five companies in the consortium for different parts of a full Cosmetics Manufacturing Plan to be used as a shared facility and the Incubation committee approved an additional amount of R175 000 from the EU budget for BDS services to

close the identified supplier requirement gaps as identified by the market. The total amount of R3 188 685 was recommended for approval.

The Establishment of Two Township-based Feeder Hubs

Vodacom Sites A total of 80 Vodacom sites were allocated to Seda for Incubation Units, broken down per province on the diagram below:

The programme has been aligned to the National Digital Hub Programme of Government with the number of hubs being expanded from the initial two hubs with a budget allocation of R10 million to four hubs and a total budget allocation of R20 million. The programme is also gaining traction with additional technical and resource partnerships with private sector firms like Vodacom, CISCO, Microsoft SA and Google and public sector partnership at national, provincial and local government being finalised.

Gibela Business Incubation Hub The interim board resolved to appoint an interim CEO to drive the establishment of the new Incubator, while the Gibela Ethics committee finalise the vetting of the new CEO and additional board members.

Incubation Knowledge Platforms and Stakeholder Engagements During the period under review we participated in the following platforms and engagements sessions aimed at enhancing broader knowledge on Incubation and support to the ecosystem: • Ministers’ stakeholder session at the University of Limpopo (Limpopo); • Le French Tech Johannesburg chapter launch (Gauteng); • AfricaAreana Africa Incubation Dialogue and Venture Capital Night (Western Cape); and • The Presidential Commission on the 4th Industrial Revolution Stake • holder session on capital markets and risk capital for innovation, startups, early stage moonshots and SMEs – (Gauteng).

Performance Results Quarter 3: For the period under review the Incubation Unit recorded the following performance results against the targets set for the quarter. The summary is as follows: 127 new SMMEs were created, 2 523 clients were supported; and the clients Incubated in our TBIs/EIPs and CFERIs recorded a collective turnover of R429 396 547 and created 553 jobs. The Incubators graduated 49 enterprises during the period under review with collective client turnover of R135 480 427 at graduation.

Stakeholder Engagements: Microsoft SA During the latter part of the quarter we agreed with Microsoft

SA on key projects that will underpin the Seda/Microsoft Partnership in 2020. Core to the planned partnership is joint work and project deployment in the areas of future digital skills, e-platforms, programme and technical programme deployment to Technology-based Incubators and the new Digital Hubs.

This report provides a review of the performance of the Incubation Unit for the period 1 January 2020 to 31 March 2020. During the period under review the work of the unit was focused on consolidating year-end and preparation for the new financial year.

Stakeholder Engagements: EOH

The network was expanded to 96 with the approval of an additional four Incubators in the 4th quarter, strategically located in the provinces of Mpumalanga (Helena Agri-Park in the Nkomazi District), North West (Matlosana and Krugersdorp), Gauteng (Khutsong and West Rand) and Western Cape (George and Thembalethu).

We participated in an exploratory meeting with EOH to look at potentiation enterprise supplier development approaches. EOH is keen on working with Seda on deploying the Seda Growth Garage model across the different EOH Business Units.

Stakeholder Engagements: Rand Water We participated in an exploratory meeting with Entsika Consulting, the Implementation Partner for Rand Water’s HULISA Enterprise Development (ED) programme. Entsika is keen on working with Seda on: • The provision of nine financial BDS and technical support services through the Seda Incubation network; • Exploring the development of a dedicated Business Incubation Hub in Gauteng for Rand Water; and • Partnering with Seda on the deployment of the Seda Growth Garage ESD model in Rand Water and the establishment of a joint ESD Fund with Sefa.

Stakeholder Engagements: Mzansi Aerospace Technologies The Incubation Unit in partnership with the City of Ekurhuleni and NYDA sent out its first call for applications for the Drone Accelerator in Ekurhuleni.

We have expanded the CFERI footprint from its original 14 centres to 22 with the approval of an additional eight CFERIs during the period under review. As part of enhancing the Enterprise Customer Value Proposition of the Incubation Centres we support, the Adjudication Committee recommended just over R2.3 million in special support funding for different equipment such as a food testing lab, a platinum metal analyser, an electric rolling mill, a micro brazer, a spin casting machine and a metal laser cutter. The new equipment will enhance the shared facilities in the different Incubators, allowing Incubated clients to improve the quality of the products that they produce. We also approved just over R5 million in special funding for 11 of the Youth Centres for Entrepreneurship Rapid Incubators (CFERIs) and recommended 90% of the TBI and CFERI portfolio for funding for the 2020/21 financial year. The new Gibela Business Incubator (GBI) space design and technology architectures were completed during the review period and we concluded the appointment of additional four members to the board and the new centre manager. The new team will officially take up their respective duties in the first quarter of the 2020/21 financial year.

We concluded the following projects and strategic partnerships in the 4th quarter: • A three-year review technology business Incubation portfolio (TBI portfolio of 46); • Phase 1 of the SoftstartBTI 4IR Focal Hub, Business Case; • A business plan for the EU Budget support funding for the 2020/21 financial year; • A partnership agreement with the City of Ekurhuleni in support of the Gibela Business Incubators (GBI) and EWC CFERI; • A partnership agreement with the North West Department of Economic Development, Environment, Conservation and Tourism. The new agreement included an R8 million cofunding investment for the new Mafikeng Digital Hub and Leema Township Incubation Hub;

inputs into the design of the Furniture Manufacturing Masterplan (DTIC and DSBD) and have started work and provided inputs into the development of the ICT Digital Master Plan of the Department of Communication and Digital Technologies. We are working with the Department of Higher Education (Science and Innovation) on the Entrepreneurship Development Masterplan for TVET Colleges using the Seda Centre for Entrepreneurship Rapid Incubation (CFERI) model. During the period under review we participated in two Stakeholder Engagement sessions with the DHE and on the plan and the support framework of the 13 TVET-based CFERIs going forward. As part of the “Africa France Summit - The challenge of 1000” the Incubation Unit has been working with the French Embassy in SA on the adjudication process of selecting South African start-ups to participate in the challenge. During the period under review we assessed a total of 260 applications from South African SMMEs. The Summit originally planned for September 2020 has been postponed for a date to be confirmed for 2021.

• Three of the University and TVET-based Incubators/CFERIs received Presidential oversite visits aimed at reviewing the impact of the Incubation model in Universities and TVET Colleges;

Jewellery Cluster

• In partnership with SoftstartBTI we concluded a co-funding partnership with Mangaung Metro for the establishment of the Bothshabelo Digital Hub to be located in the Bothshabelo Industrial Park. The Municipality reserved an amount of R3 million in the 2019/20 financial year towards the new hub; and

South African manufacturers do not yet have access to the metal financing structures enjoyed by their overseas competitors, resulting in challenges for South Africa to compete with other jewellery manufacturing countries such as China, Thailand and India.

• In partnership with Chemin we concluded a co-funding partnership with the Jobs Fund towards the establishment of the National Cosmetics Accelerator Programme. The total fundable investment is over R20 million.

To overcome some of these constraints, the Jewellery Cluster was formed. The purpose of the cluster is to create a collaborative environment amongst the jewellery Incubators in South Africa and to collectively develop a platform for SMMEs in this industry.

Additional Stakeholder Engagements

During the period under review, two Jewellery Cluster meetings were held in Rustenburg and Greenstone.

We were tasked by the Department of Small Business Development to work on the coordination of small business

Incubation Book Series – Journal

The programme will be rolled out in Ekurhuleni West College CFERI (Gauteng) and Vhembe TVET College CFERI (Limpopo).

Seda Technology Programme commenced with developing a book series on Incubation in partnership with AOSIS and the Vaal University of Technology (VUT).

The first drone start-up accelerator programme in Africa was launched and commenced in EWC CFERI in February 2020.

VUT has given full authorisation for the publication of Dr Lose’s PhD work on Incubation by AOSIS Scholarly Books.

Following a rigorous selection process, over 40 start-ups applied to join this programme.

VUT thanks Seda for the seed funding of this book series, believing that the series will add value to the whole Incubation ecosystem in South Africa.

Twenty of these start-ups were short-listed when the Call for Applications closed in January 2020.

The author will be appointed as a research fellow of VUT in line with the AOSIS/DHET requirements.

The founders of these start-ups were invited to a pitching demo day and they faced a panel of judges.

Drone Accelerator Pilot Project

These judges had a difficult task of only selecting 10 start-ups but the bottom four start-ups were also too good to be left out and they settled for 14 start-ups.

Seda in partnership with Mzansi Aerospace Technologies, City of Ekurhuleni and NYDA is rolling out the Drone Accelerator Programme.

The new accelerator programme received a lot of media coverage during and post the launch of the programme.

Gauteng

FreeState

Limpopo

Eastern Cape

Northern Cape

Kwazulu Natal

North West

Mpumalanga

COVID-19 The COVID-19 pandemic has presented numerous challenges, not only in South Africa as a country, but in the Incubation network as well. Incubators were challenged to move towards more virtual Incubation services in a very limited time. Despite these challenges, Incubators and their respective clients are rising to the challenge and have listed their products/services as well as their capacity to deliver during this arduous time. The unit’s workflow has also been disrupted with important processes like mock audits, new Incubator induction and site establishment being affected. Under the stewardship of the Minister, the ADG and the CEOs of Seda and Sefa the support measures put in place and the SA Economy Recovery plan will lead to the reimagined industrial policy with deeper support to small business in general and local equipment and product manufactures in particular.

Western Cape

District Mapping We completed a data and location mapping of all Incubators publicly and privately funded per district to segment the network and to better understand the number and type of Incubators by province and municipal area, i.e. geographic distribution.

Performance Results Quarter 4 For the period under review the Incubation Unit recorded the following performance results against the targets set for the quarter. The summary is as follows: 76 new SMMEs were created; 2 951 clients were supported; and the clients Incubated in our TBIs/EIPs and CFERIs recorded a collective turnover of R650 885 363 and created 416 jobs. The Incubators graduated six enterprises during the period under review.

Incubation Performance Highlights: Lepharo Lepharo’s application to the Sefa mass lending project got approval using Quartile Capital as the fund manager. The approved fund is to the value of R80 million. The fund was approved on condition that it is used as a top-up to the Exxaro Enterprise Development Fund which is currently managed by Quartile Capital.

Incubation Performance Highlights: iHUB These are some of the highlights and achievements from the following iHUB Incubatees: • Dominion Business Investments

Tichy Mashiri has been with the iHUB for almost a year now. His business has improved and he has managed to secure a three-year contract worth about R8 million in East London to design, implement and manage an ISP Network. He has also been accredited as a Cisco trainer by MICT Seta.

• Empowerment Technologies

Akhona Mlilo joined the iHub in 2018. The business now runs training sessions in their offices based at Pier 14 as well as at the iHub. Courses offered include end-user computing, office management, receptionist and cashier training amongst others. The company turnover increased from R9 000 per month to over R100 000 per month. The iHub has assisted the company towards developing an online training platform and it is running successfully.

•

• Loomee Group

Piwe Saleni has been with the iHUB for six months now and has managed to secure a contract worth about R1 000 000 to provide a Remote Software Development Skills Programme to equip IT graduates from universities and colleges on how to find online remote jobs, software development opportunities and project management skills. The group of 25 learners is split into five project team members working for five remote small-medium businesses in different cities to build basic software for the small businesses. 80% of the graduates are female, advancing women in the tech space and software development. With high unemployment in South Africa, Loomee Group is equipping the learners with new ways to look at jobs and businesses. They are introducing them to new job titles and new online businesses relevant to the 4th Industrial Revolution focusing on software development skills. 70% of the team members have already generated income online through remote work training.

TuksNovation During the reporting period, the following highlights and successes were celebrated: • FundaBotix

FundaBotix is a low-cost robotic platform designed to teach

e-STEAM to school children, to reduce high-failure rate of engineering students at tertiary stems from lack of technical foundation. The start-up is Incubated in the Incubation Programme. FundaBotix pitched and came in second for the TIA Leaders Innovation Fellowship (LIF) competition in the UK from 19-30 January 2020. Aviro Health Aviro Health is a mobile phone-based healthcare system that helps patients navigate healthcare and locate support services. Aviro Health secured R4,7 million in investments from Grand Challenges Canada.

• KDJI

Following the successful launch of the “Diamonds of South Africa” (DSA) at the China International Import Expo, KDJI and the Xilian Group met to discuss an implementation plan for the brand going forward.

Chemin After long discussions and backs and forth with Jobs Fund, the contract was finally signed. The contract entails the approval of an amount of R20 million to establish a Cosmetics Enterprise Accelerator (CEA) in Modderfontein. The funds will be used to capitalise the CEA manufacturing facility and laboratory to the value of R15 million as well as operations for three years. The balance of the funds, R5 million, will be used for operational expenditure and to employ mentors, interns and plant operators. This has resulted in five of the cosmetics SMMEs within Chemin deciding to form a consortium and seek funding assistance to capitalise their own manufacturing facility. These SMMEs have each applied for a portion of the value chain of the manufacturing plant for the Technology Transfer Fund (TTF).

An amount of R3 188 685 was approved for the consortium for the equipment and supplier development.

BBI BBI has started using the Mobile Biodiesel Plant. Five of the centre’s clients have used the plant for the Biodiesel production. A total of 3 593 litres of biodiesel was produced by the five clients. All the centre’s vehicles now use biodiesel produced in-house. BBI has been in discussion with the Department of Energy (DoE) on the biodiesel production threshold for SMMEs and the licence application processes that the SMMEs have to undergo. BBI has concluded phase 1 of the Waste to Energy Project in partnership with SANEDI which is the Mobile Plant.

LJBI LJBI has signed an agreement with Takealot, a major online retailer, to sell products by LJBI clients on their online platform. This initiative will assist clients to improve their sales and exposure of their products. During the quarter under review, LJBI was approved an amount of over R700 000 for infrastructure upgrade that will help enhance the value proposition of the centre as well as sustainability.

EJP Two of EJP’s clients, Elegante and Beadz by Flex, were selected by the DTI to be part of the SMMEs to attend NEW York Now at the Jahvist Centre in New York where they showcased their unique jewellery, and they were very well received. Upon their return, Noxy of Elegante received a donation of 1.5kg of silver from the Rand Refinery in order for her to be able to complete the orders she received in New York.

Vhembe TVET CFERI Vhembe TVET CFERI purchased technical centre equipment to the value of R2.4 million for both community and student SMMEs to design, develop, maintain and manufacture their prototypes in tooling, bolts and nuts.

False Bay False Bay has been confirmed as the implementing partner for WR SETA’s training of 75 individuals and cooperatives. False Bay has also received additional project confirmation with DEDAT to value of over R2 million. The College has established a strong partnership with the Services SETA, which will see the establishment of a comprehensive Business Incubation Village at the new Swartklip Campus. Other partnerships like that of YES (Youth Employment Services) are actively being nurtured to add value to the overall project. The College has plans to expand the CFERI to the Business Incubation Village at the new Swartklip Campus that will service the surrounding communities of Khayelitsha and Mitchells Plain.

DUT MTN visited the CSERI offices and are very eager to collaborate with the CSERI in setting up more kiosks at the different Campuses and to develop a programme for enterprise development and support. In 2019, the DUT CSERI ran a month-long supplier enterprise development programme for Cataler (Pty) Ltd, a company based in Prospecton that manufactures catalytic converters for the automotive industry. The value of the project in 2019 was R120 000. In 2020, the amount for the project rose to R400 000. This is one of the ways that the CSERI can become more selfsustainable and has therefore adjusted the programme in order to respond to the requirements of Cataler (Pty) Ltd.

SECTION C THE QUALITY, STANDARDS AND TECHNOLOGY TRANSFER UNIT

1. THE QUALITY, STANDARDS AND TECHNOLOGY TRANSFER UNIT Introduction The SEDA Technology Programme provides a range of services that promote entrepreneurship in industry, particularly in enabling SMMEs to access appropriate technology to become more competitive and grow their businesses. These services include: •

Technology Business Incubation;

•

Quality Systems and Conformity Standards; and

•

Technology Transfer and Innovation Support.

Together, the Quality Systems and Conformity Standards Unit and the Technology Transfer and Innovation Support Unit offer technical business interventions to SMMEs. Innovativee SMMEs can apply for these technical business interventions via the nationwide network of SEDA branches and business Incubators, which assess the SMME’s business and refer qualifying cases to the Quality Systems and Conformity Standards Unit and the Technology Transfer and Innovation Support Unit. These units will support qualifying SMMEs to increase productivity and competitiveness, improve sales and employment, and grow the economy, with the following activities:

Quality Systems and Conformity Standards •

Quality Health Checks – On-site gap audits to assess suitability of current state and future requirements of SMME applicants from the Seda network of branches and Incubators, for management system certifications, product conformity testing and design interventions.

•

Management Systems – Assisting SMMEs in implementing business systems that improve their productivity and help them access national and international standards.

Bongani Ntombela (Acting Senior Manager Quality and Standards and Technology Transfer)

Typical management systems include: ISO 9001 Quality, SISO 14000 Environment, SANS 18000 Health & Safety, ISO/FSSC 22000 Food Safety, and others such as testing laboratories, welding, and medical devices. Once system implementation is complete and functioning, further support for certification audits can be assessed.

• Product Testing – Promoting access for SMMEs to accredited laboratory testing and conformity certification of their products to national standards, product labelling and compulsory regulations.

Innovative Support • Open Innovation Challenges – These solve core supplychain and supplier-development challenges of large private and public corporates, by working with the nationwide Seda network of branches and business Incubators to source innovative SMMEs with specific skills, products and services that are able to pitch novel solutions to those challenges, thus improving access to markets. • SMME Innovation Forums – These are sector-specific multistakeholder events, sharing entrepreneurial knowledge and skills for SMMEs, facilitating introductions to the latest sector innovations, appropriate technology and intellectual property, with stimulating peer-networking and forming of productive partnerships.

• Investor Pitching – “Pitch & Perfect” sessions are held to close the gap between entrepreneurs and SMMEs and investors.

Nationwide pitching competitions are held with judging panels of funders, together with entrepreneurial pitching masterclasses that support innovative SMMEs to present their business cases more effectively, thus improving access to finance for SMMEs and impactful deal-flows for investors.

Examples of funders and investment criteria, e.g. IDC, Sefa, FinFind, etc can be found at www.seda.org.za under “About Seda -> Useful Links”.

Examples include food, beverages, construction materials, chemicals, clothing and cosmetics.

• Product Design – Improving product and packaging design for SMMEs, through design-thinking workshops, design clinics for product-specific advice and design support to improve product and packaging functionality and aesthetics.

Engagements will take place with universities, research institutions, design and innovation centres and science

councils for knowledge-sharing on relevant technology and intellectual property to upscale production. Some examples of these sector forums held include: Industry 4.0, Cosmeceuticals, Automotive, Textiles, Construction and Agro-Processing.

Technology Transfer • Technology Transfer Fund (TTF) – This fund supports clients of the nationwide Seda network of branches and business Incubators to acquire innovative, production-enhancing technology and intellectual property, to assist SMMEs in the manufacturing sector with turnover below R5 million, to provide return on investment for the fund by growing revenue and employment over a three year contract period.

Funding is limited and the annual funding window is always highly over-subscribed.

Thus a rigorous and competitive evaluation process assesses applicants’ potential impact, and in return the SMMEs in the investment portfolio often achieve over 100% growth during the contract.

• Incentive Application Criteria – Applicants are required to work with their nearest Seda branch office or Seda-

supporting business Incubator to obtain and submit TTF application forms together with the lists of documentation required for due diligence and the annual funding window dates.

• Annual sales turnover below R5 million;

• Access to secure premises and appropriate production infrastructure;

The pre- and post-investment support of the Seda network is key to creating sustainable impact, thus applications not coming via branches or Incubators cannot be accepted.

• Accurate management accounts and annual financial records;

• Proven marketing actions, competitor analysis and threeyear cost/revenue projections;

•

This is a brief summary of the key application criteria:

• Producing in manufacturing sectors which are undersupplied, core of a globally competitive economy, creating multiple additional downstream opportunities;

• Ability to commit by contract to three years of continuous performance reporting, to deliver impact and return on the investment;

• Show a distinct and differentiated competitive edge that can be enhanced through productive technology;

• Comparable quotations for technology from reputable, national, Treasury CSD-registered, tax-compliant suppliers for each item required; and

• Existing products with growing market demand, sales channels and established pricing;

• Own co-funding for 10% of the request value.

2. HIGHLIGHTS AND ACHIEVEMENTS FOR THE UNIT The Quality, Standards and Technology Transfer Unit addressed a number of challenges and achieved significant achievements over the period under review, including the following: • Innovation Coordination • Pitching • Stakeholder Relations: Department of Small Business Development: EU Budget Support • Stakeholder Relations: IGMDP • Applications and Approvals • TTF Online Application System • New Initiative – IP and Prototyping • Season 4 “Pitch and Perfect” • Technology Transfer Fund • TTF Online Application System • Sub-Unit-Incubation Performance Highlights

Value Added Partnerships SANAS and STP concluded a three year funding agreement. The SANAS funding is to assist SMMEs from designated groups who are operating in the “conformity assessment” space to acquire equipment, access training and develop and implement laboratory techniques. Partnership with Cell C on innovation challenges has been agreed on and the project will start in October. During the period under review Seda has increased its partnership discussion with Cisco after the company announced a R140 million investment in South Africa to help make SA 4IR ready. The investment includes the establishment of seven more Incubators to complement the existing two based in Gauteng and KZN. The agreement discussions are for joint planning of the seven new Incubators, coding programmes in all TVET-based CFERIs and Cisco Technology deployment in all the new District Based Digital Hubs.

Innovation Coordination An innovation forum for the automotive sector was held in cooperation with Seda Free State in June 2018. 35 SMMEs benefited from the opportunities shared, particularly by the innovation partner Bosch Automotive, and are looking to establish a cluster amongst themselves to serve the group with high-tech Bosch equipment.

Pitching The Seda “Pitch & Perfect” Season 4 was arranged in collaboration with the SA Innovation Summit, with the national finals pitching den held at the Summit in Cape Town in September 2019, attracting over 3000 attendees from more than 30 countries, including over 150 funders and investors. During the period under review, 2 290 entrepreneurs attended Pitch for Funding Master Classes and Pitch for Funding Sessions in the Vhembe District, in collaboration with Sefa and DSBD. Further sessions took place covering nine District Municipalities within KZN and reached 2 442 entrepreneurs.

Stakeholder Relations: Department of Small Business Development: EU Budget Support The Work Plan and Programme 3 - Improved SMME Competitiveness and Compliance to Market Requirements was approved for funding. The request for proposal for the four feeder hubs was concluded in consultation with the DSBD and was published in different national newspapers and on Seda social network platforms. We are also working with the Department on partnership opportunities with NYDA and the Department of Defence.

Stakeholder Relations: IGMDP The IGMDP graduation for Cohort 2 took place on the 14th of May 2019 where 17 candidates graduated from the programme.

The training programme for Cohort 3 is ongoing until the end of August with Cohort evaluation presentations being done in September 2019. This is the last Cohort under the initial funding from DTI. The continuation of the programme post the funding from the DTI is under discussion between both parties. Cohort 3 consists of 43 delegates, not only from the Seda Incubation network, but also from private Incubators and other enterprise development organisations.

Applications and Approvals Twelve applicants were approved in two adjudication panels held on 31 May and 20 June. An amount of R3 million was committed. Five projects were closed in the quarter.

successfully to a judging panel during regionals. The judging panels included major representatives from both private and public sector SMME funding and development institutions such as Absa, Mercantile Bank, Standard Bank, the NYDA, Sefa, GEP, NEF, the Innovation Summit and the IDC to name a few. This year’s Pitch & Perfect Season 4 was arranged in collaboration with the SA Innovation Summit, with the national finals pitching den held at the Summit on the 11th September in Cape Town. The top three winners won support from TTF and the winner gained automatic entry into the Andza Pitching Den of the SA SME Fund. Individual investors are having follow up meetings with 12 of the 20 finalists who pitched at the Innovation summit.

Technology Transfer Fund

TTF Online Application System Design and development was done and testing conducted with the process owners. Test results were provided to the service provider who has completed the refinements of the forms.

26 applications were approved during the period under review

New Initiative – IP and Prototyping The QS & TT Unit embarked on a pilot to test the processes and procedures of offering IP and prototyping interventions. In June a workshop was held in Pietermaritzburg where certain participants were identified for possible assistance with trademark registration. The unit attended a session on IP and prototyping with Investec to gain insight on how to best execute the new initiative.

Season 4 “Pitch and Perfect” Regional pitching masterclasses and competitions were held throughout the country between July and August, with the 20 chosen finalists having demonstrated the ability to pitch

TTF Online Application System Working with BIS, the online application system has been tested and revised, and has gone live, being piloted for ECIC applications with Seda Gauteng.

Sub-Unit-Incubation Performance Highlights Kgarose Kgarose Pty, a client of BICSA, has developed a sweet potato yoghurt that already proved to be popular by consumers. The client received assistance from the Limpopo Agro Food Technology Station for product testing and development.

The client won the Small Scale Agro Processing Award and also went to China for training.

Wild Jinger, a client of Furntech based in Cape Town, specialises in upmarket custom household furniture.

The trip was sponsored by food processing before the word training the Department of Agriculture, Fishery and Forestry.

Its founder, Vernon Hendricks, has more than 20 years of experience in the industry.

The client bought equipment suitable for upscale production with the R100 000 prize money.

Whilst working in the industry, Vernon saw a gap in the market for a cabinet line with a broad selection of design of choice.

The product has no preservatives and is available as both normal and drinking yoghurt with strawberry, banana and apricot flavours.

The company experienced challenges of equipment to manufacture and design the product. Furntech signed the client and offered the company the opportunity to use their equipment and also provided full business development services.

Currently the product is available in the refrigeration section in SPAR and three other retailers in Limpopo and has a shelf life of three weeks. The client is well known in Limpopo province and had several interviews on television, radio and newspapers. The client decided to relocate to Gauteng to expand his market and has an expectation to become compliant and develop the product to achieve an extended shelf life with the microbiological growth within the acceptable range to ensure that his product is fit for human consumption beyond two weeks.

Currently the company has managed to increase the market by 113% with a turnover of R200 000, generated in a period of two months. SmartXchange clients have attended annual SMME awards and the following clients have been recognised: • Enspired Women Magazine: ICT Women of the Year: R15 000; • Nubia Promotions: Runner Up ICT Women of the Year: R9 000; • Emakhuluseni Kuhle Enterprises: SMME of the Year: R25 000;

BAAA Smoothies obtained funding of the value of R40 000 from SAB Foundation and BICSA assisted the client with a TTF application for equipment to ensure that the client will be able to streamline not only production but also storage and bottling.

• Enspired Women Magazine: Runner Up: SMME of the Year: R15 000;

Vanilla Bean has increased their turnover from roughly R13 000 prior to joining BICSA to a turnover of R86 176.

• Sikephi App: Runner Up Best New Comer: R6 000.

The entrepreneur signed an agreement with Jardim Caffee, a coffee shop at the Advocate Chambers in Menlo Park, to supply light meals and confectionary on a daily basis.

• Black Cotton Marketing: Best New Comer: R10 000; and

The above SMMEs were able to be recognised at the awards ceremony because of the business development services that are provided by SmartXchange on a quarterly basis.

KGBW (Pty) Ltd was formed in 2013 with solid backgrounds in the Built Environment & Infrastructure Development sector, servicing the Commercial, Industrial & Residential markets. The aim of KGBW is to impact people’s lives through the work that they do: delivering reliable and immaculate construction services & solutions. The company prides itself ondelivering the highest quality standards on time without compromising transparency, integrity, and accountability. The business is owned and managed by two brothers, Gobusamang (left) and Onkabetse (right) Mosielele. Gobusamang has experience in Architecture, Interior Design and Construction Management. He is the Operations Director and has the technical and practical know-how and has been involved in the delivery of large- and small-scale projects maintaining the highest professional and technical standards. Onkabetse has experience in Accounting, Internal Audit, Governance and Business Development. His role in KGBW is to lead strategic business development and financial growth. KGBW joined the Property Point Enterprise Development Programme in November 2019 after one unsuccessful attempt. The main challenges the company faced upon the business diagnosis were: • Growth – increasing sales, numbers of clients, profit and cash; • Selling Strategy – changing their model from Demand-Pull to Supply-Push; and • Cash Flow – generating the cash to drive working capital needs. Since joining the Property Point Programme and partaking in the bespoke business and capacity building interventions, KGBW

has evolved in character, capacity and reach. The business went through the Strategy and Sale Enablement training where they were assisted with developing a vision, mission and strategy to guide business development and growth. KGBW is committed to providing clients with an immaculate construction service executed with the utmost skill and technique. As a result of this, since joining the programme they have been able to access projects from Growthpoint Properties to the value of R5 million thus far. The brothers are capable, financially literate and commercially astute and are managing the business growth towards greater success and achievements. Gotec Investment, founded in 2005, is a cleaning company that evolved from being a “traditional” cleaning company and moved towards using innovative solutions to solve modern day cleaning problems whilst maintaining the highest quality of service. The company has built a strong team that has many years of experience in the cleaning industry. The directors of the company are highly qualified and skilled, which adds to their success as a business. With the nature of an environment that consistently changes, the passion and drive for being innovative was born. They now invest a lot in research and development of new products and services that are economically and environmentally friendly. After a long four months of rigorous auditing and revision of policies and systems, Gotec Investments have received ISO 9001 accreditation. Since receiving ISO 9001 certification, Gotec is now a registered vendor at Growthpoint Properties. There is traction in terms of access to markets as many corporations show interest in the services and solutions the company offers. Sarebi has concluded an agreement with the Western Cape Department of Economic Development to run a 12 month Incubation programme funded by the DEDAT Booster Programme.

SECTION D KEY FINANCIAL INFORMATION

1. KEY FINANCIAL INFORMATION For year ended 31 March 2020 For Seda to comply with its audit requirements for the Auditor-General, the Seda Technology Programme’s finances have been audited as part of Seda for the 2019/20 financial year. Therefore no separate audited financial statement for Stp exists and the audit opinion of Stp is covered by the Seda audit opinion, which is unqualified.

31 March 2020

31 March 2019

ZAR

Total revenue

207 481 679

227 411 340

Personnel expenditure

(21 769 447)

(20 916 722)

Project and admin expenditure

(252 003 260)

(206 755 620)

Stp has conscientiously applied the allocated funds in an efficient and transparent manner, enabling the organisation to effectively support various projects and interventions mandated to it.

NOTES

SEDA NATIONAL OFFICE The Fields, Ofﬁce Block A, 1066, Burnette Street, Hatﬁeld, 0083, Pretoria I PO Box 656714, Arcadia, 0007 T: +27 12 441 1000 | F: +27 12 441 2064 NATIONAL INFORMATION CENTRE T: 0860 103 703 | E: info@seda.org.za I Website Enquiries: webmaster@seda.org.za RP443/2020 | ISBN: 978-0-621-49062-6 seda.dsbd

@seda_dsbd

Seda