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Tuesday, 22 March 2016

SOUTH AFRICAN NEWS

Black Business Council Urges ANC to Help South Africa Through Gupta Crisis

March 18, 2016 | Posted by  
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President Jacob Zuma
President Jacob Zuma
The Black Business Council urged the democratically elected national executive on Thursday to navigate the country through the crisis of allegations that the Gupta family was influencing the appointments of certain cabinet ministers.
“These allegations come at the time where the country is facing an economic crisis whereby there is lackluster growth, high inflation and risk of being downgraded by the rating agencies,” BBC chief executive, Mohale Rlebitso said.
Rlebitso said the BBC supported the call for a judicial commission of inquiry to remedy the situation with urgency, and arrest the threat that the Gupta allegations presented to the country’s economic and political outlook.
He said the BBC urged President Jacob Zuma and the ruling party to deal decisively with these allegations and reassure the nation that the country’s sovereignty has not and will not be hijacked by private interests.
“With the world economy being in an extended fragile state, failure to implement corrective measures with immediate effect will result in drastic consequences and further deterioration of South Africa’s macro-economic outlook,” he said.
“These consequences would have the most damaging effects on the most vulnerable citizens of our country and Black business in general — exacerbating job losses and crippling economic development and thereby, undermining socio-political stability.”
Rlebitso said this was especially important given the country’s large current account deficit and heavy reliance on foreign-funding to close the gap. It was therefore necessary to reassure foreign investors that the country’s democratic framework still functioned optimally.
“The National Treasury of South Africa is a very important institution which needs to be respected and supported if we are to maintain stability in the economy and financial markets in the global environment,” Rlebitso said.

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Thursday, 17 March 2016

Entrepreneur Magazine News


South African Government Grants

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There’s a pervasive myth that there’s no funding available for businesses. This is not the case – if you meet the criteria there’s government grants available for your business.
South-African-Union-Buildings
The South African government is well aware of the importance of developing the economy, creating employment and attracting foreign investment.
To make these goals a reality, there are grants and assistance programmes available from the government and associated organisations that can get your business off the ground and expanding.

What is a government grant?

It is an award of funds from the government that does not need to be repaid, does not accrue interest, and has strict guidelines for application. Grants available from the government usually tie in with its key deliverables such as black economic empowerment, job creation and developing the economy – to name some.

 Related: Government Funding and Grants for Small Businesses

Do you have to repay a Government Grant? 

South-African-money
Unlike a loan, a grant is an award of money that is non-repayable – meaning there is no obligation by the receiving parties to repay the money received. While the government is one of the best sources of grants, its selection criteria is strict and paperwork intensive, and the receiving business is obligated to spend the funds in a manner specified by the provider.
Most funds available in South Africa have their own specific requirements, so it’s advisable to research each fund carefully to assess their criteria and up your chances of receiving funding.

List of Government Grants for Business

The best place to start with researching government grants for business is through the Department of Trade and Industry (DTI). By visiting www.thedti.gov.za, you can explore a number of funding options from grants to incentives and all their qualifying criteria. Some grants available include:
Related: Government Loans

1. Aqua-culture Development and Enhancement  Programme (ADEP)

This programme is available to registered entities involved in primary, secondary and ancillary aquaculture projects for both marine and fresh water. It is approved for new, existing and upgrading entities. See more at here.

2. Automotive Investment Scheme (AIS)

This scheme is designed to grow and develop the automotive industry through investment in new and replacement models and components  that will increase production volumes, sustain and increase employment, and strengthen the automotive value chain. See more here.

3. Black Business  Supplier Development Programme (BBSDP) 

This is a cost-sharing grant offered to black-owned businesses to improve their competitiveness and sustainability. It aims to fast-track small and micro-enterprises, foster links between black-owned businesses, corporates and public sector, and to complement affirmative procurement and outsourcing. It provides grants to a maximum of R1 million. See more at here.

4. Business Process Services (BPS)

This scheme aims to attract investment and create employment in South Africa through  off-shoring activities. It involves a three-year tax-exempt grant for qualifying businesses. See more here.

5. Capital Projects  Feasibility Programme (CPFP)

The Capital Projects Feasibility Programme is a cost-sharing grant contributing to the cost of feasibility studies for projects that will lead to increased local exports and stimulate the local manufacturing sector. See more here.

6. Critical Infrastructure Programme (CIP)

This is aimed at improving the infrastructure of South Africa. The grant covers a minimum of 10% to a maximum of 30% of total development costs of qualifying infrastructure. See more here.

7. The Co-operative Incentive Scheme (CIS)

This scheme is a 90:10 cost-sharing grant for registered primary cop-operatives of five or more members to improve the viability and competitiveness. See more at here.

8. Incubation Support Programme (ISP)

This programme is designed to create and develop successful enterprises with the ability to revitalise communities and local economies. For more information visit this site.

9. The Manufacturing  Competitive Enhancement Programme (MCEP)

Provides enhanced manufacturing support to encourage facility upgrades to sustain employment and improve productivity. See more here.

10. Manufacturing Investment Programme (MIP)

This programme is a reimbursable cash grant to local and foreign-owned manufacturers who wish to establish new facilities or expand on existing ones.

11. National Youth Development Agency (NYDA)

While it is moving away from grants for youth and going toward mentorship and development programmes, grants are available for youth entrepreneurs. See more here.

12. People-carrier Automotive Investment Scheme (P-AIS)

This is a cash grant of between  20% and 35% of the value of qualifying investment in productive assets approved by the DTI. See more at here.

13. The Sector Specific Assistance Scheme (SSAS)

This scheme is a cost-sharing grant offered on an 80:20 principle and a maximum of R1,5 million is awarded to qualifying businesses. See more at here.

14. Support Programme for  Industrial Innovation (SPII)

The Support Programme for Industrial Innovation is aimed to promote technology development in South African industry. Visit their site for more information.

Who can apply for Government Grants for Business?

South African Government Grants
Because of the number of grants available – and each with its own criteria – you will need to individually research each grant. Generally through, the following will be required:
  • The business needs to be majority black-owned
  • It needs to have a significant representation of black managers (if applicable)
  • Minimum and maximum turnovers vary from grant to grant
  • The business must have a minimum of one year in trading
  • The business must be a registered entity with a tax clearance certificate, Vat number, etc.
  • The business must comply with all regulations such as CIPRO, SARS etc.
  • All owners and major shareholders need a clear credit history.
Related: DTI Funding

Tips on applying for Government Grants for Business

Once you’ve identified a grant applicable to your business and industry, research it thoroughly to determine the qualifying criteria. Each grant listed on the DTI website has a contact person you can call or email for more information.
When applying, make sure you’ve completed the following checklist:
  1. Completed and signed application form
  2. SARS Tax Clearance Certificate – Original and valid
  3. Detailed business plan
  4. Co-operative resolution (if applicable)
  5. List of directors, shareholders etc. complete with certified copies of IDs and CVs
  6. Copy of business registration cerfiticate
  7. Motivational letter
  8. Bank statements
  9. Projected financial statements for start-up and/or expansion.
When applying for a Government Grant you will need to have a business plan. Here is a free business plan template to get you started.
SOURCE: Entrepreneur Magazine

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Wednesday, 16 March 2016

AllAfrica.com News

South Africa: Business Welcomes Black Industrialists Programme


Pretoria — Business has welcomed the Department of Trade and Industry's Black Industrialists Programme that is aimed at expanding the industrial base and injecting new dynamism with the inclusion and participation of black industrialists.
Black Business Council Vice President Sandile Zungu said the business fraternity fully supports the programme, which was officially launched at The New Age business briefing on Wednesday.
Zungu said the first step business will take is to internalise the whole programme and give guidance to entrepreneurs who want to access the scheme.
He said many black firms must benefit from the policy and they must be encouraged to bloom in order to expand the country's industrial base.
"The business narrative is shifting and we need to have more black people controlling the value chain in the economy in order to have a more inclusive and radical economic transformation," said Zungu.
Speaking at the launch, Trade and Industry Minister Rob Davies said the focus of the newly-launched programme is mainly geared towards manufacturing, industrialisation and inclusive economic growth.
The policy and the programme are a key part of government's broad industrialisation initiatives to expand the industrial base and participation of black industrialists in manufacturing activities and the economy.
Minister Davies said the programme is designed to create a single forum to provide black industrialists with financial aid, non-financial support, market access and advice for those who are already trading in the manufacturing space.
The CEO of the National Empowerment Fund (NEF), Philisiwe Mthethwa, said in 2007 the agency established a strategic fund to unlock opportunities for black industrialists in the country.
"Even though the NEF has a very good balance sheet, we are not sitting on a pile of cash. We have 23 pipeline projects worth R2.7 billion to promote the Black Industrialists Policy and many other entrepreneurs keen to get involved in the manufacturing sector," she said.
Minister Davies acknowledged that the programme was not designed to solve all problems or entertain passive shareholders. He said it is a step towards addressing and empowering black people in all sectors, specifically manufacturing.
"Manufacturing is one of the least empowered sectors and that is why we came up with the Black Industrialists Policy to increase the volume of black management and involvement in order for them to control the value chains and encourage others to come forward," he said.
The Black Industrialists Programme offers a cost-sharing grant ranging from 30% to 50% to approved entities, to a maximum of R50 million. The quantum of the grant will depend on the level of black ownership and management control, the economic benefit of the project and the project value.
Potential black industrialists can visit www.thedti.gov.za to access the policy and application process.
SOURCE: AllAfrica
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Thebe Investment Corporation (Thebe) is one of South Africa’s leading investment companies.

Founded in 1992 as a pioneering black-owned company, Thebe Investment Corporation (Thebe) is one of South Africa’s leading investment companies, managing assets of over R6 billion. Thebe is a unique entrepreneurial company that does not exist only to make a profit, but is driven by a commitment to serve the broader interests of the community. Our investment portfolio spans tourism, mining
resources, infrastructure, renewable energy, petrochemicals, telecommunications, financial services, and healthcare. We actively work to promote mutually beneficial economic partnerships by investing in or developing businesses that create value for our stakeholders through the origination, execution, and prudent management of our investments.



Transformation is at the heart of how we seek to generate growth for all our stakeholders and the communities where we do business.
Founded in 1992 as a pioneering black-owned company, Thebe Investment Corporation (Thebe) is one of South Africa’s leading investment companies, managing assets of over R6 billion. Thebe is a unique entrepreneurial company that does not exist only to make a profit, but is driven by a commitment to serve the broader interests of the community. Our investment portfolio spans tourism, mining resources, infrastructure, renewable energy, petrochemicals, telecommunications, financial services, and healthcare.
Contact us
Tel:+27 11 447 7800
Fax:+27 11 447 5502
Postal Address
PO Box 3308,
Parklands, South Africa,
2121
Physical address
Thebe House 166 Jan Smuts Avenue Rosebank Johannesburg South Africa 2196
Office Hours: 8am – 5pm (Monday – Friday)
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BUSINESS DAY NEWS

Grocery inquiry to cover concerns of township SMEs

BY LINDA ENSOR, MARCH 15 2016, 11:58
TEAMING UP: The first spaza-to-store conversion, Monageng Market, opens in Diepkloof, Soweto this week. It is owned and run by Solly Legae, who says the move will change the face of retail in townships. Picture: SUPPLIED
The first spaza-to-store conversion, Monageng Market, is owned and run by Solly Legae. Picture: SUPPLIED
THE grocery retail sector inquiry launched last year by the Competition Commission was very significant and could address issues of food prices and market access, the economic development minister said on Tuesday.
The inquiry was the second initiated by the commission in terms of amendments to the Competition Act, which allows it to proactively conduct investigations. The first one conducted was into the private healthcare industry.
"Over the past decade or more, a number of developments in the retail sector affected township shops and small retail businesses of South Africans, often very negatively," Economic Development Minister Ebrahim Patel said in a written reply to a parliamentary question by African National Congress (ANC) MP Imamile Pikinini.
"For example, national supermarket chains moved aggressively into townships and rural areas, often in newly constructed shopping malls, impacting on the viability of small, informal and independent retailers in a number of ways.
"A study by the Bureau of Market Research in Soshanguve found that half of the informal businesses located near to a new shopping centre closed down and most retailers had a decline in their turnover, profitability, stock movement and product range," the minister said.
Mr Patel said the reason for the grocery retail market inquiry was to consider ways to improve dynamic competition access for small businesses in the retail sector and combat restrictive practices.
The inquiry will look at the effect of national supermarket chains on small and independent retailers in townships, rural areas and the informal economy; the effect of exclusive lease agreements between shopping mall owners and national supermarket chains that often keep smaller retailers out; and the dynamics of competition between local small retailers and foreign-owned small retailers in townships.
Other areas to be examined include the effect of regulations, including municipal by-laws, on smaller retailers and the informal sector; the effect of buyer groups where small shop-owners co-operate on bulk-buying, quality controls or technology to enable them to compete more effectively against larger players; and the prevalence of pricing policies that may discriminate against smaller players in specific product value-chains.
SOURCE: BUSINESS DAY

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