Cofimvaba entrepreneur Lunga Mabhija, 36, was one of 16 small business owners in Mthatha who received funding capital from Oscar Mabuyane, MEC of the department of economic development, environmental affairs and tourism, on Tuesday.
Small to medium enterprises are benefiting from R21m set aside by the department to grow small businesses in the province.
The handover event at the ECDC building in Mthatha coincided with Mabuyane’s department officially opening the Tsogo Sun Garden Court Hotel. The government invested R74m in its refurbishment.
Mabhija received R2.1m for his brick-making business..
“I'm very excited. My business has received a huge boost. I will now be able to buy machines and equipment. I will also be able to make deliveries. With this cash injection I will be able to get bigger contracts and attract new clients,” he said.
Mabhija employs seven staff but said once he received his new equipment he would need to employ more staff. His business has been operating for three years.
Mabuyane, who handed over all the cheques, said he was committed to making it simpler for entrepreneurs to access funding.
Commercial banks had not been helpful enough.
“Our effort to make headway was hampered by the reluctance of commercial banks to lend financial support to SMMEs. As a caring government, which is committed to economic transformation, we had to intervene,” Mabuyane said.
“Thus we established the local and regional economic development fund in the department to assist SMMEs in our local communities to realise their business ideas, and create jobs for our people.”
He said the R21m fund would be spread to all the districts of the province.
“Today there are 16 beneficiaries but there were more than 200 applicants. Those who did not come right, must fix or change things and try again because this is an annual programme. Our job as government is to invest in businesses and help them grow.”
Although Mabuyane’s speech showed that 18 businesses were supposed to get money from the fund, his spokesperson Mvusiwekhaya Sicwetsha said two of the businesses had not sorted out their banking details – there was a glitch with verification – and payment had to be stopped.
“This is a good start but more is needed. Government must facilitate and promote conducive environments for businesses to grow and thrive. We are excited to see people who are willing to work and grow the economy of the Eastern Cape,” OR Tambo District Municipality mayor Nomakhosazana Meth said
Mthatha chamber of business chairperson Vuyani Ntlabati said businesses had been neglected in the past.
“Government needs to support SMMEs. The youth need to get more support. The main sectors are agriculture and manufacturing.”
Beneficiary Ncebakazi Sobai, who manufactures cleaning chemicals in Mthatha, and received R800,000 for her business, said: “I'm grateful for the work government is doing for us. This is start-up capital. This is giving us hope to and practical help to grow our businesses.”
Mabuyane also officially re-opened the four-star Garden Court hotel which had its first refurbishment since it was established in 1976. He said government had injected more than R70m in the renovations in order to “bring economic growth to this part of the province which has always been treated like a step child.”
The R63m improvements to the structure were funded by the ECDC, which is the landlord, while R11m spent on fixtures and fittings was funded by the Mthatha Hotel, which is the operating company.
Siyat@dispatch.co.za..