SMME businesses tell how ECDC has assisted them.

Onke Mankahla, a partner in three Debonairs franchises in Mthatha, is one of the budding youth entrepreneurs financed by ECDC in 2009/2010. 

Mankahla and partner, Sicelo Mntonga, first approached ECDC to buy two existing Debonairs outlets in Mthatha for R2, 8m funding.  ECDC financed R2, 2m of this amount. Since the duos investment in the stores, turnover has doubled with the Mthatha Plaza branch being voted the fast food chain's top outlet in the Eastern Cape and second nationally.

"With the fast food market overlooked in Mthatha, our investment has paid off handsomely," says Onke.Subsequently, ECDC has helped the pair to finance their third store. Further east, some 56 kilometres from Mthatha, a Qumbu mother and son team, Mandisa and Anele Siwahla secured R3,5 million from ECDC to open popular hardware franchise Build It in June 2010.

Anele says their clients, although mainly from the surrounding communities, demand SABS approved hardware. They are already making plans to expand the premises to accommodate a brick yard and crush stone in order to meet the increasing local demand.

Mfanelo Mjekula, owner of Hitech Construction, is another SMME which is benefitting from the construction boom. The construction of Luvuyweni Primary School in Mthatha's Mphoko Admin Area is one of six projects for which his business has received R1,2 million in funding from ECDC.

Mjekula participated in ECDC's Intergrated Emerging Contractors Development Model (IECDM) which has been rated as an industry best practice by the Construction Industry Development Board (CIDB).The CIDB has promoted him from a grade four to six grading level. With this improved rating, Mfanelo is now eligible for tenders of up to R10 million.

Other construction projects for which he has received funding from ECDC included two schools in Bizana, another in Mthatha as well as two clinics in Flagstaff and Mqanduli.

"These are only a few of the many stories of achievement that demonstrate ECDC's drive to support youth and women ventures and previously disadvantaged groups. For example, although provincial budget cuts resulted in ECDC securing R226 million which was less than the required funding for 2009/10, the corporation achieved a 49 per cent increase in loans disbursed to youth from the previous period. Of the 907 ventures financed in the 2009/10 period, 345 are youth-owned," says ECDC chief executive Sitembele Mase. 

Mase says ECDC support for small businesses extends beyond financial support. ECDC provides businesses with a range of non-financial services which improve their competitiveness.

For example, some 30 kilometres from East London is the Ikhwezi Empowerment Centre in South Africa's second largest township, Mdantsane (Buffalo City), which demonstrates this capacity. The centre was started in 1999 by Nomago Qabaka with a vision to empower unemployed people in the suburb.

The centre uses recycled glass as the main material to produce beads. With a team of 13 women and two men, the centre has a following for its recycled bead products both locally and internationally. In 2009, the centre was one of six craft companies from the province to showcase their products in the L'Artigiano de Fiera - one of the biggest craft exhibitions in Milan, Italy. This trip was facilitated by the Department of Trade and Industry (thedti) and ECDC.

"The exhibition was all about showcasing Proudly South African products. I was so excited to see a positive response to the quality of our work. We sold everything we took with us.

"With the support we receive from ECDC and the dti, we are now preparing ourselves to fully explore the export market," says Nomago. 

Mase explains that where ECDC has identified shortcomings in clients, an aftercare, capacity-building and marketing support service is provided. 

"For example, a two hours' drive from East London inland will get you to Victoria Manor guesthouse in Queenstown. ECDC offered marketing support to the Victoria Manor guesthouse to prepare it for the Africa SMME Awards.

"The guesthouse received marketing material to promote its business, making it more competitive in the awards. As a result, the guesthouse was named an overall runner-up," says Mase.

During the year, ECDC also implemented 15 strategic projects which have a high economic impact particularly in the rural Eastern Cape. ECDC allocated R7 million towards the implementation of these projects.

For example, further to the west, just over 300 kilometres from East London in Port Elizabeth, ECDC is driving the implementation of the flagship Zwelakhe Cosmetic Creams project. This project provides ECDC with an ideal opportunity to exploit the innovative talent that exists in the province and access to valuable intellectual property. The project produces cosmetic creams, including sunscreens, anti-wrinkle creams and moisturisers for sensitive skins such as those living with albinism.

Tests have already proven that the Zwelakhe creams are more effective than any similar product in the market. A business plan, feasibility study and trials have been completed in Port Elizabeth and Middledrift with excellent results. Formulation was achieved through natural plant materials and certification has been received from the Medical University of South Africa (Medunsa). Production is expected to begin in September of the new year. DEDEA has provided initial funding of R700, 000. A total of 250 jobs will be created on full production. Ten people are already employed. 

"ECDC is confident that these interventions will result in faster economic growth and job creation as well as build a firm foundation of projects that are delivering returns in tough times," says Mase. 

The media briefing recording is now available on YouTube.