Finance and Economic Opportunities
With reference to the SMME booster fund with a budget of R21 million for the current financial year that is earmarked for the support of 100 township and rural small businesses that was announced by the Premier in his SOPA 2019:
- What is the detailed breakdown of expenditure with an indication of how much has been spent to date, (b) what is the reason for expenditure, (c) provide a list of all the beneficiaries, (d) what are the amounts received, (e) what are the business addresses, (f) what are the details of directors and (g) what criteria were followed to allocate the funding?
The SMME Booster Fund (the Fund) is a fund made available to organisations supporting SMMEs in the Western Cape. The Fund aims to enhance existing SMME interventions implemented by intermediary organisations that focuses on SMME support. The Fund will focus on business development support, enterprise and supplier development interventions as well as infrastructure projects aimed at SMME development. The Fund will give preference to interventions that support SMMEs with the identified target groups listed below:
- Youth owned;
- Women owned;
- Entrepreneurs living with disabilities; and
- SMMEs in a township or in a rural area.
What is the detailed breakdown of expenditure with an indication of how much has been spent to date?
The Department has committed to support eighteen projects for the period 2019/20 – 2020/21. The Department will support 18 organisations who in turn will support between 200 – 600 businesses. Below please find a list of the organisations that will be supported through the first iteration of the project:
Table 1: Recipients of funding
PROJECT NAME | SPEND TO DATE (13 Mar 2020) | COMMITTED 2019/20 | TOTAL PROJECT SUPPORT 2019/20 |
Labit | R258 000, 00 | R518 925, 00 | R776 925, 00 |
Innovator Trust ESD | R470 000, 00 | R696 000, 00 | R1 166 000, 00 |
Launchlab | R1 003 560, 00 | R585 115, 00 | R1 588 675, 00 |
Cape Agulhas Municipality | R1 345 000, 00 | R150 000, 00 | R1 495 000, 00 |
Edge Growth | R2 011 918, 00 | R0 | R2 011 918, 00 |
Sarebi | R0 | R694 961, 00 | R694 961, 00 |
ASISA | R632 693, 25 | R721 311, 75 | R1 354 005, 00 |
False Bay College | R0 | R615 490, 00 | R615 490, 00 |
Witzenburg Municipality | R15 000, 00 | R1 670 000, 00 | R1 685 000, 00 |
Fix Forward | R867 704, 00 | R0 | R867 704, 00 |
True North | R573 414, 00 | R411 919, 00 | R985 333, 00 |
Laingsburg Municipality | R0 | R1 483 148, 00 | R1 483 148, 00 |
SA Education (SAEP) Project | R474 082, 00 | R0 | R474 082, 00 |
Productivity SA | R0 | R1 639 200, 00 | R1 639 200, 00 |
Trio Plus | R187 119, 00 | R0 | R187 119, 00 |
Clotex | R341 000, 00 | R450 000, 00 | R791 000, 00 |
Qhubeka | R40 000, 00 | R642 456, 00 | R602 456, 00 |
Khayelitsha Bandwidth Barn | R550 496, 00 | R991 488, 00 | R1 541 984, 00 |
Total | R8 754 986, 25 | R11 245 013, 75 | R20 000 000, 00 |
All funds not yet transferred will be completed by the end of the 2019/20 financial year.
- What is the reason for expenditure?
During the 2019-2022 Medium Term Expenditure Framework (MTEF) budgetary process Provincial Treasury allocated funding to support and assist SMMEs with the emphasis being on delivering on the outcomes of job creation (and or retention) and business expansion. Youth and women-owned SMMEs were highlighted as being a priority.
The aspects of the project that the SMME Booster Fund will support are highlighted (bolded) in the table below.
Table 2: Aspects of the approved interventions that will be supported
PROPOSAL / BENEFICARY NAME | PROJECT DESCRIPTION (BOOSTER FUND ENHANCEMENT) | |
1 | Labit (Pty) Ltd | The project will provide business development support to a minimum of ninety (90) early stage women and youth start-ups. The business development support entails training and mentorship and incubation. |
2 | Innovator Trust | Innovator Trust programme will support fifteen (15) businesses in the technology space through a variety of interventions which includes training, mentorship and capital (equipment, licensing) support. The funding will increase the number of businesses it currently supports by ten. |
3 | Launch Lab | The intervention will provide business development support to a minimum of seventy-two (72) early stage women and youth start-ups. The business development support entails incubation, training and mentorship. |
4 | Cape Agulhas Municipality | The project entails the development of a containerised business park that will support a minimum of eight (8) traders in the Ou Meule Corridor just outside the Bredasdorp CBD. The project will include business support such as training and business development skills enhancement. |
5 | Edge Growth | The funding allocation from the SMME Booster Fund will enhance the existing PetroSA Enterprise and Supplier Development programme implemented by Edge Growth. The funding will be used to increase support given to the fifteen (15) identified beneficiaries. The enhancement will include an additional 2880 hours of mentoring and coaching and 28 special projects / interventions. |
6 | Sarebi | The project will incubate ten (10) existing and ten (10) pre-trade businesses in the renewable energy sector. The incubation will entail ideation, pre- and post-revenue operational support. |
7 | ASISA | The ASISA Flame Programme is a four-phase enterprise development programmes. The programme will provide support to thirty-two (32) businesses. The programme will focus on township and peri-urban based businesses and will entail business incubation, training and mentorship. |
8 | False Bay College | The intervention will provide pre-incubation, incubation and post incubation support to eighteen (18) light manufacturing businesses. The support entails ideation, technical support, access to support services in the incubator and mentoring. |
9 | Witzenberg Municipality | The intervention entails the construction of trading facilities in the Skoonsvlei Business Hub in Ceres. The trading facilities will be made available to ten (10) informal traders. |
10 | Fix Forward | The Fund will enhance the market access component of the Fix Forward business model. The expected outcome is creating more awareness of the Fix Forward platform and ultimately generating more leads and business opportunities for the contractors that the platform supports. The programme will support a minimum of forty (40) businesses. |
11 | True North | The intervention will support forty-four (44) early childhood development (ECD) centres to become financially sustainable businesses. The intervention will focus on compliance, accreditation, technical training, provision of infrastructure and equipment and business skills training. |
12 | Laingsburg Municipality | The intervention entails the construction of a business park aimed at revitalizing business in the area. The business park will host a minimum of eight (8) traders once completed. |
13 | South African Education Project | The intervention will provide support to fifteen (15) ECD centres to strengthen them to become sustainable (guide principals in implementing additional revenue stream activities) and improve their services to children. |
14 | Productivity SA - Distressed Businesses | The intervention will provide turn around support to six (6) businesses. The turnaround support consists of three phases. Phase one will include a comprehensive businesses analysis; the second phase will produce a work plan based on the analysis and the third phase will implement the workplan. |
15 | Daytime Move Trading (Pty) Ltd t/a Trio Plus | The intervention will expand an existing enterprise development programme of Elandsfontein Mine. The intervention will support an additional seven (7) businesses with start-up funding, post investment support and mentorship. |
16 | Clotex | The intervention will support a minimum of ten (10) youth and women owned businesses through an incubation programme which consists of training, mentorship, provision of machinery and equipment, market access and product development. |
17 | Qhubeka | The intervention will provide set up services, training and guidance to six (6) new bicycle mechanics to operate as businesses. The businesses will offer bicycle services and repairs within townships. |
18 | Khayelitsha Bandwidth Barn | The intervention aims to support one hundred (100) women and youth owned businesses through an experiential learning experience of top tech tools available to aid in the growth and development of their businesses. The business development support entails incubation, business skills training, technical training and mentorship. |
Provide a list of all the beneficiaries
The list of beneficiaries to date is attached hereto as Annexure A. The Fund will continue its support of the approved interventions into the 2020/21 financial year when more beneficiaries are expected to be on boarded.
What are the amounts received?
The funding allocated to support businesses are paid to intermediaries (project owners). These intermediaries in turn utilise the funding received from the Department to enhance their support to SMMEs in the Western Cape. The funding support per organisation is listed in Table 1 of this response.
What are the business addresses?
The business addresses of the beneficiaries are listed in Annexure A.
What are the details of directors?
The table below contains the names of the directors of the eighteen (18) beneficiary companies as listed in Table 1. The information tabled below is based on evidence received from the respective organisations as part of their submission to the SMME Booster Fund.
Table 3: List of Directors/Trustees
PROJECT NAME | DIRECTOR / TRUSTEES
|
Labit | Mr Ivan Christo Swarts, Mr Ettienne Stuwart van Greunen, Mr Conrad Jacobus Du PLessis |
Innovator Trust ESD | Ms Tashline Jooste, Ms Jancis van Biljon, Ms Theo Lombard, Ms Zanele Mthombeni, Ms Nooraya Khan |
Launchlab | Ms Aletta Johanna Nel (Director) |
Cape Agulhas Municipality | Not applicable |
Edge Growth Access | Ms Karimi Fondaumere |
Sarebi | Ms Zaida Jackson, Ms Xanthea Limberg, Mr Michael Mulcahy, Ms Louise Scholts, Ms Angua Amis, Ms Karin Kritzinger |
ASISA | Ms Ruth Benjamin Swales (authorised trustee) |
False Bay College | Not applicable |
Witzenburg Municipality | Not applicable |
Fix Forward | Mr Joshua Cox (Director) |
True North | Ms Catherine Mesias, Ms Vicky Cumm, Mr Werner Stadler |
Laingsburg Municipality | Not applicable |
SA Education (SAEP) Project | Ms Lorna Jane Keen |
Productivity SA | Board of Directors (names not supplied) |
Trio Plus | Mr Anthony Salome, Mr Gert Theron, Ms Stephanie Roodt |
Clotex | Mr Douglas Minnis, Ms Cheryl Campbell, Ms Anita Ruth, Mr Wellington Ncube, Mr Shamil Isaacs, Mr Stuart Gottschalk |
Qhubeka | Mr Anthony Arthur Fitzhenry, Mr Craig John Brundsen, Ms Felicia Sarah Tsatsawani Phaweni |
Khayelitsha Bandwidth Barn | Mr Ian Merrington, Mr Ashley Davies, Brendan Hughes, Ms Faith Kolala, Mr Joshin Raghbar, Mr Gregory Reis, Mr Ravenderan Naidoo |
- What criteria were followed to allocate the funding?
The Department followed a public participation process by doing a Call for Proposals (CFP) during June 2019. The CFP was advertised in the Sunday Times, The Weekend Argus, the Business Day, Die Burger as well as the Western Cape Government social media channels (Facebook and Twitter). One hundred and four (104) proposals were received. Eighteen proposals were identified for support. The following criteria were applied when reviewing and adjudicating the proposals received:
EVALAUATION CRITERIA | |
CRITERION | SCORE |
Alignment of the proposal to the Fund objectives | 30 |
Experience and ability (success) | 20 |
Level of co-funding, value add and own contribution | 15 |
Impact on business sustainability and/or expansion | 35 |
TOTAL | 100 |
