Department of Small Business Development, Seda and Sefa

DEPARTMENT OF SMALL BUSINESS

DEVELOPMENT (DSBD)

DSBD 2019/20

ANNUAL PERFORMANCE PLAN

DATE: 10 JULY 2019

1

1. PART A: STRATEGIC OVERVIEW

a) STRATEGIC FRAMEWORK

b) ORGANISATIONAL ENVIRONMENT

c) REVISIONS TO LEGISLATIVE AND POLICY INITIATIVES

d) OVERVIEW OF 2019/20 BUDGET AND MTEF ESTIMATES

2. PART B: PROGRAMME PLANS

a) ADMINISTRATION

b) SECTOR POLICY AND RESEARCH

c) INTEGRATED COOPERATIVES DEVELOPMENT

d) ENTERPRISE DEVELOPMENT AND ENTREPRENEURSHIP

3. PART C: DEPARTMENTAL ENTITIES

a) SMALL ENTERPRISE DEVELOPMENT AGENCY (SEDA)

b) SMALL ENTERPRISE FINANCE AGENCY (SEFA)

2

OUTLINE

PART A: STRATEGIC OVERVIEW

3

STRATEGIC FRAMEWORK

4

STRATEGIC FRAMEWORK

AIM AND PURPOSE

To support the radical transformation of the economy through the promotion and

development of sustainable and competitive entrepreneurs, small businesses

and co-operatives, that contribute to job creation and economic growth.

MANDATE

To lead and coordinate an integrated approach to the promotion and

development of entrepreneurship, small businesses and co-operatives, and

ensure an enabling legislative and policy environment to support their growth

and sustainability.

VISION

A radically transformed economy through integrated and effective enterprise

development and entrepreneurship promotion.

MISSION

The coordination, integration and mobilisation of efforts and resources

towards the creation of an enabling environment for the growth and

sustainability of small businesses and co-operatives.

5

STRATEGIC FRAMEWORK

6

STRATEGIC GOALS STRATEGIC OBJECTIVES

1. Policy and planning

coherence in the sector, that

promotes an enabling

ecosystem for SMMEs and

co-operatives.

1.1. Reduced regulatory burdens and a conducive legislative and policy environment for

SMMEs and co-operatives.

1.2. Provide credible information on the status of the Cooperatives, Village and Township

economies.

2. Equitable access to

responsive and targeted

products and services that

enable the growth and

development of SMMEs and

co-operatives.

2.1 Scaled-Up and coordinated support for SMMEs, Cooperatives, Village and Township

economies.

2.2. Expand access to financial SMMEs through partnerships and innovative service offerings.

3. Sound governance and the

optimal utilisation of

available resources.

3.1. Compliance and good governance ensured.

3.2. Efficient, integrated and streamlined business processes and systems.

4. An enhanced contribution

to socio-economic

development outcomes by

the sector.

4.3. Informed and empowered communities and a responsive department.

5. A professional and

capacitated SBD Sector.5.1. Coordinated development of the skills pool across the sector.

5.2. Strengthened human resource capability and a high performing organisation.

ORGANISATIONAL VALUES

VALUESINNOVATION

• Living this valuemeans that we willseek to:

• Display a commitment to being “radical” in what we do;

• Foster innovative ideas and solutions in order to deliver exceptional results; and

• Continuously seek new and better ways to serve our clients.

INTEGRITY


• Consistently honour our commitments;

• Uphold ethical, honest behaviour;

• Ensure open and transparent communication; and

• Behave with integrity in all our actions, always acting in the best interest of the organisation.

PROFESSIONALISM


• Serve with utmost respect, competence and professional mannerism;

• Display punctuality, reliability, dependability and a commitment to meet deadlines; and

• Cooperate with all role players.

CUSTOMER CENTRIC


• Place customer service excellence at the centre of everything we do;

• Create a nurturing environment by partnering with our clients and employees, and in the way in which we care and support them;

• Always be available and accessible in providing public services to our society; and

• Understand customer needs and respond timeously, efficiently and effectively to customer queries and requests.

COMMITMENT


• Do what is needed to get the work done;

• Be selfless, resolute, purposeful and steadfast;

• Be committed to efforts of job creation, alleviating poverty and reducing inequality; and

• Display a solution-driven attitude, and commitment to serve.

7

ORGANISATIONAL ENVIRONMENT

8


9

The 2016/2017 Organisational structure and capacity requirements of the Department

was found to be inadequate to deliver on the mandate during the revision of the

Departmental Strategic Plan for the fiscal years (2016/17 – 2020/21). Towards end of

2017, the department triggered a review process of the organisational structure which

was internally approved in November 2018 however placed on hold pending the

National Macro Organisation of the State (NMOS).

In order to effectively deliver on the new prioritise as state transition into the 6th

Administration, the operating model and organisational structure of the Department will

require refinement. The latter process is aimed at streamlining process and strengthen

support in the delivery of services and in particular closing gaps in critical areas such

as Development Finance and Statistical Analysis in parallel. Furthermore focus will be

also be at re skilling staff in other important roles such Monitoring and Evaluation

amongst others. For financial year 2019/20, the work of the Department is organised

according to the following programme as per the next slide


PROGRAMME NO. PROGRAMME NAME SUB-PROGRAMMES

Programme 1 ADMINISTRATION 1) Ministry

2) Departmental Management (Office of the DG)

3) Corporate Services

4) Financial Management

5) Communications and Marketing

Programme 2 SECTOR POLICY AND

RESEARCH

1) Research

2) Policy and Legislation (including IGR and Coordination)

3) International Relations and Trade Promotion

4) Monitoring and Evaluation

Programme 3 INTEGRATED CO-OPERATIVES

DEVELOPMENT

1) Co-operatives Development

2) Co-operatives Programme Design and Support

3) Supplier Development and Market Access Support

Programme 4 ENTERPRISE DEVELOPMENT

AND ENTREPRENEURSHIP

1) Enterprise and Supplier Development

2) SMME Programme Design and Support

3) SMME Competitiveness

4) Entrepreneurship

10


11

AS INDICATED IN PREPARATION OF THE 2019/20 APP CONSIDERATION WAS ALSOMADE IN VIEW OF THE OPERATING MODEL MOVING FORWARD. THE PROPOSEDMODEL IS CENTRED AROUND THE FOLLOWING:

RE-ORGANISATION OF THE DEPARTMENT TO RESPOND APPROPRIATELY TO THENEEDS OF THE SMMES AND COOPS TAKING INTO COGNISANCE THE RESOURCESAVAILABLE ( BUDGET AND PERSONS);

TAKEN A THEMATIC APPROACH TO SERVICE DELIVERY AND THIS POSTURE WILL NOTIN ANY WAY AFFECT WORK THAT IS UNDERWAY I.E LEGISLATIONS AND SO FORTH.

DSBD OPERATIONAL MODEL

12

PRODUCT AND MARKETS

# Market Value Chains

# Government Procurement

# Technical Support (Sector-Specific)

# Business Matching

# Trade Agreements & Large Transactions

# Export Markets

FINANCE

# Financial Sustainability

# Risk Cover and Business Rescue

# Model Funding Agreement

# SMME Contracting models

# SMME Payment

# Funding Facilities (sefa)

INFORMATION

# Regulatory and Support (sefa& SEDA)

# Business Communications

# Seamless Access and Support (One-Stop-SMME Platform)

# SMMEs and Cooperatives Register

# SMME Business Index

ENTERPRISE DEVELOPMENT

# SMME Master Plan

# Township Economies

# Village/ Rural Economies

# Cooperatives Support

# SMMEs Support

# Business Facilitation (Incubation) & Informal Business

REVISIONS TO LEGISLATIVE AND POLICY INITATIVES

13

REVISIONS TO LEGISLATIVE AND OTHER MANDATES

1. The Department is in the process of amending of the National Small Business Act (No. 102 of

1996) and anticipate submitting a bill to the Executive Authority during the course of 2019 / 20

financial year. To date amendments to Schedule 1 of the National Small Enterprises Act has

been gazetted.

2. The DSBD is reviewing the Integrated Strategy on the Promotion of Entrepreneurship and

Small Enterprises, in order for the strategy to remain relevant and to accommodate recent

economic activities and business cycles.

3. The DSBD will evaluate the Co-operatives Strategy (2021-2022) and improve on the

implementation plan and will inform the development of an integrated approach to co-

operatives development.

4. Red tape reduction strategy to be finalised by the third quarter of this year. We will continue

with the rollout of red tape reduction programme and this year we are focusing on the Northern

Cape targeting the following municipalities: John Taolo Gaetsewe District Municipality, Z F

Mgcawu District Municipality, Kheis Local Municipality, Emthanjeni Local Municipality

Siyancuma Local Municipality, Siyathemba Local Municipality, Ubuntu Local Municipality, Kai

Garib Local Municipality, Ga Segonyana Local Municipality, Joe Morolong Local Municipality

Richtersveld Local Municipality, Karoo Hoogland Local Municipality, Khai Ma Local

Municipality, NamaKhoi Local Municipality, Kamiesberg Local Municipality and Phokwane

Local Municipality

14

OVERVIEW OF BUDGET AND

MTEF ESTIMATES

15

OVERVIEW OF 2019/20 BUDGET AND MTEF ESTIMATES

16

Programme

AUDITED

OUTCOME

MAIN

APPROPRIATI

ON MTEF

2017/18

R’000

2018/19

R’000

2019/20

R’000

2020/21

R’000

2021/22

R’000

TOTAL

OVER

MTEF

R’000

Administration

116,999 127,121 124,388 131,496 139,630 395,514

Sector Policy and

Research16,748 22,447 35,615 39,416 42,310 117,341

Integrated Co-

operatives

Development 99,204 115,017 127,628 135,080 142,269 404,977

Enterprise

Development

and

Entrepreneurship 1,226,533 1,223,868 2,280 921 2,407 271 2,539 124 7,227,316

TOTAL 1,459,484 1,488,453 2,568,552 2,713,263 2,863,333 8,145,148

ECONOMIC CLASSIFICATION OF 2019/20 BUDGET AND MTEF

ESTIMATES

17

Economic

classification

AUDITED

OUTCOME

MAIN

APPROPRIATION MTEF

2017/18

R’000

2018/19

R’000

2019/20

R’000

2020/21

R’000

2021/22

R’000

TOTAL

R’000

Compensation of

employees 129,006 140,632 151,808 163,297 173,911 489,016

Goods and

services 78,100 81,752 86,123 90,913 95,949 272,985

Payment for

capital assets 6,458 4,002 4,274 4,362 4,567 13,203

Transfers &

subsidies 1,245,919 1,262,067 2,326,347 2,454,691 2,588,906 7,369,944

TOTAL 1,459,484 1,488,453 2,568,552 2.713,263 2,863,333 8,145,148

2019/20 ECONOMIC CLASSIFICATION

18

ECONOMIC CLASSIFICATION2019/20

R'000

% Proportion

COMPENSATION OF EMPLOYEES 151 808 5.9%

GOODS AND SERVICES 86 123 3.4%

TRANSFERS AND SUBSIDIES 2 326 347 90.6%

PAYMENTS FOR CAPITAL ASSETS 4 274 0.2%

TOTAL2 568 552

100.0%

TRANSFERS

19

Transfers and subsidies account for R2.326 billion (90.6%) of the allocated budget

Sefa is allocated R1 billion (43%)

Seda receives R867.763 million (37.3%)whilst

DSBD remains with R458.584 million (19.9%) of the allocated transfers and

subsidies as illustrated below:

Area of allocation 2019/20 2020/21 2021/22 TOTAL MTEF

Proportion to

total

Transfers

SEFA 1 000 000 1 055 000 1 113 025 3 168 025 43%

SEDA 867 763 908 960 958 160 2 734 883 37.1%

DSBD 458 584 490 731 517 721 1 467 036 19.9%

Total Transfers 2 326 347 2 454 691 2 588 906 7 369 944 100%

TRANSFERS: DETAILS

20

Details 2019/20 2020/21 2021/22 TOTAL 2019

MTEF

Small Business and Innovation Fund sefa 1 000 000 1 055 000 1 113 025 3 168 025

Total to sefa 1 000 000 1 055 000 1 113 025 3 168 025

Small Enterprise Development

AgencySeda 607 274 641 465 675 953 1 924 692


Agency: Technology programmeSeda 152 281 160 261 169 075 481 617


Agency: Capacity Building

Programme

Seda 15 406 16 253 17 147 48 806

SEDA Gazelles Programmes Seda 35 000 30 000 31 650 96 650 SEDA Enterprise Incubation

Programme (EIP)Seda 57 802 60 981 64 335 183 118

Total to SEDA 867 763 908 960 958 160 2 715 474

BBSDP DSBD 286 126 301 863 318 465 906 454

Co-Operatives Incentive Scheme DSBD 87 984 92 823 97 928 278 735

National Informal Business Upliftment

Scheme (NIBUS)DSBD 73 914 84 904 89 574 248 392

Craft Customised sector Programme DSBD 10 560 11 141 11 754 33 455

TOTAL DSBD 458 584 490 731 517 721 1 467 036

TOTAL 2 326 347 2 454 691 2 588 906 7 369 944

PART B: PROGRAMME PLANS

21

PROGRAMME 1: ADMINISTRATION

22

The Programme is responsible for the provision of strategic leadership, management and

support services to the Minister, Deputy Minister, Director General, and the Department. This is

to ensure the successful implementation of the Department’s mandate through sustainable and

integrated support services that are customer driven.

Sub-Programmes:

1. Ministry

2. Departmental Management (Office of the DG)

3. Corporate Services

4. Financial Management

5. Communication and Marketing

PURPOSE OF THE PROGRAMME

23

PROGRAMME 1: OBJECTIVES AND MTEF TARGETS

24

STRATEGIC

OBJECTIVE

ESTIMATED

PERFORMANCEMEDIUM TERM TARGETS

2018/19 2019/202020/21

(New Cycle)2021/22

3. Sound governance and the optimal utilisation of available resources

3.1: Compliance and

good governance

ensured.

Unqualified audit outcome for

both financial and non-

financial performance data

for 2017/18.

Unqualified audit

outcome for both

financial and non-

financial performance

data for 2018/19.

Unqualified audit outcome

for both financial and non-


for 2019/20.

Unqualified audit outcome

for both financial and non-


for 2020/21.

<5% variance on annual

budget.

<5% variance on

annual budget.


budget.


budget.

100% payments to eligible

creditors processed within 30

days.

100% payments to

eligible creditors

processed within 30

days.


creditors processed within

30 days.


creditors processed within

30 days.

3.2: Efficient, integrated

and streamlined

business processes and

systems.

2 ICT system projects

defined in the DSBD ICT

Plan implemented.


defined in the DSBD

ICT Plan implemented.


defined in the New DSBD



defined in the New DSBD



25

STRATEGIC

OBJECTIVE

ESTIMATED


2018/19 2019/202020/21

(New Cycle)2021/22

4. An enhanced contribution to socio-economic development outcomes by the sector

4.4: Informed and

empowered

communities and a

responsive department.

25 facilitated interactions that

deliver meaningful

engagements with

communities and the public.

30 awareness

campaigns with

communities and

stakeholders

conducted.

40 awareness campaigns

with communities and

stakeholders conducted.

50 awareness campaigns

with communities and

stakeholders conducted.

5. A professional and capacitated SBD Sector

5.2 Strengthened

human resource

capability and a high

performing organisation.

50% of women SMS

representation.

50% of women SMS

representation.

50% of women SMS

representation.

50% of women SMS

representation.

2% of PWD employed. ≥ 2% of PWD

employed.

≥ 2% of PWD employed. ≥ 2% of PWD employed.

<10% vacancy rate in funded

posts.

<10% vacancy rate in

funded posts.


funded posts.


funded posts.

PROGRAMME 2: SECTOR POLICY

AND RESEARCH

26

The Programme is responsible to create an enabling environment for the development and

growth of sustainable small businesses and co-operatives through commissioning research; the

development and review of policy and legislation; the coordination and promotion of sound

intergovernmental relationships; promoting the sector interests in the regional and global arena;

and effective monitoring and evaluation of programmes to ensure the desired impact is achieved

in contributing toward the creation of employment and economic growth.

Sub-Programmes:

1. Research

2. Policy and Legislation (which includes IGR and Coordination)

3. International Relations and Trade Promotion

4. Monitoring and Evaluation

PURPOSE, GOALS AND OBJECTIVES

27


28

STRATEGIC OBJECTIVE

ESTIMATED PERFORMANCE MEDIUM TERM TARGETS

2018/19 2019/202020/21

(New Cycle)2021/22

1: Policy and planning coherence in the sector, that promotes an enabling ecosystem for SMMEs and co-operatives

1.1: Reduced regulatory

burdens and a conducive

legislative and policy

environment for SMMEs and

co-operatives.

Twelve (12) municipalities

assisted to roll out SMMEs and

co-operatives Red-Tape

Reduction Programme.

Red-Tape Reduction

Awareness Programme

rolled out in 16

municipalities.

Ease of doing business

Awareness Programme rolled

out in 20 municipalities.

Ease of doing business

Awareness Programme

rolled out in 25

municipalities.

Amendment of the National

Small Business Bill through

legislative process.

Draft National Small

Enterprise Bill submitted to

the Minister for

consideration.

Prepare and table National

Small Enterprise bill in

Parliament.

Prepare and table

National Small

Enterprise bill in

Parliament.

N/A SMME and Co-operatives

ombudsman Established.

Position paper on the

establishment of the SMME

Ombudsman finalised

Position paper on the

establishment of the

SMME Ombudsman

finalised

1.2 Provide credible

information on the status of

the Cooperatives, Village

and Township economies.

N/A SMME Index developed. Popularize SMMEs Index. SMMEs Index Report

published.

N/A Database of SMMEs and

Co-operatives per sector,

location, size, turnover,

number of employees

developed.

Annual Status Quo Report on

SMMEs produced.

N/A

N/A Reviewed Cooperatives

registration process

Standardization of the Co-

operatives registration all

provinces

Monitor the

implementation of the

revised registration

process and application

by organ of the State

N/A Informal sector registers

per trade category,

location and ownership.

Maintenance and updating of

the register.

Maintenance and

updating of the register.


29

STRATEGIC OBJECTIVE


2018/19 2019/202020/21

(New Cycle)2021/22

2: Equitable access to responsive and targeted products and services that enable the growth and development of SMMEs and co-

operatives

2.1. Scaled-Up and

coordinated support for

SMMEs, Cooperatives,

Village and Township

economies.

N/A Business Rescue Strategy

Implemented (funding,

technical support).

Business Rescue Strategy

Implemented.

Business Rescue

Strategy Implemented.

N/A Support a number of

enterprises to access

designated products and

services

Develop tracking tool to

measure government spend on

SMMEs and Cooperatives

Monitor government

spending on SMMEs

and Cooperatives

PROGRAMME 3: INTEGRATED CO-

OPERATIVES DEVELOPMENT

30

The programme is responsible to create an enabling environment that facilitates the

establishment, growth and development of co-operatives through the development and review of

legislation and policy, the design, piloting and monitoring of the impact of support services and

instruments; the championing of functional partnerships and cooperation agreements; and the

advocacy and thought leadership in advancing economic growth, job creation and social

cohesion.

Sub-Programmes:

1. Co-operatives Development

2. Co-operatives Programme Design and Support

3. Supplier Development and Market Access Support


31


32

STRATEGIC

OBJECTIVE

ESTIMATED


2018/19 2019/202020/21

(New Cycle)2021/22

2: Equitable access to responsive and targeted products and services that enable the growth and development of SMMEs and co-

operatives

2.1 Scaled-Up and




economies

N/A Four (4) Product markets for


developed.

Four Product markets for SMMEs

and Cooperatives developed.

Four Product markets for


developed.

N/A Quality products and services

made by SMMEs and

Cooperatives Produced.

Implement sector-specific capacity

building interventions.

Implement sector-specific

capacity building

interventions.

N/A Master Plan on SMMEs and

Cooperatives Contracting

developed.

Ensure the sub-contracting

conditionalities on contracts with

largest acquisition budget benefit

SMMEs and Co-operatives.

Ensure the sub-contracting

conditionalities on

contracts with largest

acquisition budget benefit

SMMEs and Co-operatives.

N/A Partnership agreements with

Development Finance

Institutions signed.

Value of Contracts benefiting

SMMEs and Co-operatives through

conditionalities

Implement, Monitor and

report on transactions

N/A SMMEs and Co-operatives

Master Plan Developed.

SMMEs and Co-operatives Master

Plan Implemented.

SMMEs and Co-operatives

Integrated Master Plan

Implemented.

N/A Partnership accord with

industry bodies secured.

Rollout of the partnership. Rollout of the partnership

and reporting.

N/A Reports on the roll-out of the

credit guarantee schemes

developed.

Reports on the roll-out of the credit

guarantee schemes.

Reports on the roll-out of

the credit guarantee

schemes.

2.2. Expand access to

financial SMMEs

through partnerships

and innovative service

offerings

122 co-operatives

supported financially

through the CIS.

Co-operatives supported to the

value of the R67.9 million.

Co-operatives supported to the value

of the R72.8 million

N/A

PROGRAMME 4:

ENTERPRISE DEVELOPMENT AND

ENTREPRENEURSHIP

33

The Programme is responsible to create an enabling environment for the development and

growth of sustainable small businesses through the development and review of legislation and

policy; the design, piloting and monitoring of the impact of support services and instruments; the

promotion of local economic development and entrepreneurship; championing functional

partnerships; and advocacy and thought leadership in advancing economic growth and job

creation.

Sub-Programmes:

1. Enterprise and Suppler Development

2. SMME Programme Design and Support

3. SMME Competitiveness

4. Entrepreneurship


34

PROGRAMME 4: THE BUDGET AND MTEF TARGETS

35

STRATEGIC OBJECTIVE


2018/19 2019/202020/21

(New Cycle)2021/22

2: Equitable access to responsive and targeted products and services that enable the growth and development of SMMEs and co-operatives

2.1 Expand access to

financial SMMEs through

partnerships and innovative

service offerings.

N/A SMMEs and Co-operatives

supported through blended finance

to the value of R100 Million.

SMMEs and Co-operatives

supported through blended

finance to the value of R110

Million.

SMMEs and Co-

operatives supported

through blended finance to

the value of R416, 4

Million.

677 SMMEs supported through the

BBSDP.

SMMEs supported through the

BBSDP to the value of R206.1

million.

SMMEs supported through

the BBSDP to the value of

R211.9 million.

N/A

2.2 Scaled-Up and




economies

N/A Four (4) Incubation centers/digital

hubs established.

Six Incubation centers/digital

hubs in districts and

metropoles.

Eight Incubation

centers/digital hubs in

districts and metropoles.

N/A Defined support programmes for

informal sector trading category and

location, e.g. Buyer group initiation

and support.

Rollout of the programme. Rollout of the programme.

N/A One -Stop- SMME Platform/ Centre

established.

Maintenance of the platform. Maintenance of the

platform.

N/A SMME Payment tracing platform

developed.

Rollout of the platform. Monitoring and reporting

on the performance of the

platform.

N/A Funding model developed. Integrated funding model

implemented.

Integrated funding model

implemented

N/A Digital Hub Framework and Model

developed.

Rollout of the hubs. Rollout of additional hubs

PART C: DEPARTMENTAL ENTITIES

36

PUBLIC ENTITIES REPORTING TO THE MINISTER

37

Two public entities report to the Department through Governance arrangements

Name of Public

Entity

Enabling

LegislationMandate and Purpose

Monitoring and

Evaluation

Transfer to Public Entity

(R’000.00)

2018/19 2019/20

Small Enterprise

Development

Agency (SEDA)

National Small

Enterprise Act

1996, (No.102 of

1996), as

amended.

SEDA provides non-

financial business

development and support

services for small

enterprises, in partnership

with other role players in

the small business

development

environment.

The mission of SEDA is to

develop, support and

promote small enterprises

to ensure their growth and

sustainability.

Performance

evaluation is

undertaken on a

quarterly basis.

R840 089 R867 763

Small Enterprise

Finance Agency

(SEFA)

Section 3 (d) of the

Industrial

Development

Corporation Act,

No. 22 of 1940

(Industrial

Development

Corporation (IDC)

Act).

SEFA supports the

development of

sustainable SMMEs

through the provision of

finance.

The mission of SEFA is to

provide access to finance

to Survivalist, Micro, Small

and Medium businesses

throughout South Africa.

Performance

evaluation is

undertaken on a

quarterly basis.

N/A R1 000 000

SEDA ALLOCATED BUDGET FOR 2019/20

38

Allocation to: Budget for 2018/19

(R’million)

Budget allocated for 2019/20

(R’million)

Increase or (decrease)

in budget

Seda - baseline R580,241 R607,274 4.66%

STP - baseline R144,622 R152,281 5.3%

STP – Capacity Building Programme (CFEs) R30,489 R15,406 (50.5%)

STP – Enterprise Incubation Programme (EIP) R54,737 R57,802 5.6%

Seda – Gazelle Programme R30,000 R35,000 16.7%

Seda - IMEDP R33,500 R30,000 (10.4%)

TOTAL R873,589 R897,763 2.7%

SEDA PROVINCIAL 2019/20 BUDGET SPLIT

39

Provinces

Budget 2019/20

Enterprise

Development

(EDD) Allocation

Budget 2019/20

Seda Tech

Programme (STP)

Allocation

Budget 2019/20

TOTAL

PROVINCIAL

allocation

% of total

budget

allocation

Eastern Cape 50,632,307R 26,644,792R R 77,277,099 13.1%

Free State 45,655,583R 4,620,152R R 50,275,735 8.5%

Gauteng 40,589,293R 45,813,647R R 86,402,940 14.7%

Kwazulu-Natal 69,377,782R 19,277,294R R 88,655,076 15.1%

Limpopo 47,398,101R 10,550,076R R 57,948,177 9.8%

Mpumalanga 42,371,062R 10,113,647R R 52,484,709 8.9%

Northern Cape 44,065,408R 4,620,152R R 48,685,560 8.3%

North West 44,562,296R 3,435,076R R 47,997,372 8.2%

Western Cape 61,570,157R 17,018,218R R 78,588,375 13.4%

TOTAL R 446,221,991 R 142,093,054 R 588,315,045 100.0%

SEDA’S DELIVERY NETWORK & SUPPORTED INCUBATION CENTRES

JULY 2019

40

Provinces Seda Branches Colocations Mobile units Incubators Total per province

Eastern Cape 5 14 0 10 29

Free State 5 9 5 3 22

Gauteng 2 5 0 16 23

Kwa Zulu Natal 6 11 0 13 30

Limpopo 5 4 3 3 15

Mpumalanga 5 20 0 6 31

Northern Cape 5 5 1 3 13

North West 5 5 0 4 14

Western Cape 14 1 0 6 21

TOTALS 52 74 09 76 198

CO-LOCATION PER PROVINCE

41

EC FS GP KZN LP MP NC NW WC

Mbhashe Local

Municipality

Sasol Infrachem City of

Tshwane-

Mabopane

Alfred Duma

Municipality SOIC

Khumba Iron

Ore

Balfour

Thusong

Service

Centre

Sishen

Khumba Iron

Ore

Company

AngloGold

Ashanti

SAREBI

JGDM (Aliwal North) DESTEA City of

Tshwane-

Olievenhoutbo

sch

Okhahlamba

MunicipalityNandoni Rural

Development

Pixley Ka

Seme Local

Municipality Tushiya

AngloGold

Ashanti

JGDM (Maclear) Dihlabeng Local

Municipality

City of

Tshwane-

Mamelodi

Inkosi

Langalibalele

Municipality

Ephraim

Mogale Local

Municipality

Thaba Chweu

Local

Municipality

Namakwa

District

Municipalit

y

Moretele

Municipality

JGDM (Sterkspruit) Matjhabeng Local

Municipality City of

Tshwane

Atteridgeville

Endumeni

Municipality Makhudutham

aga Local

Municipality

Islington

Youth

Developemnt

CentreSouth 32

Lekwa

Teemane

Local

Port St Johns Municipality Mantsopa Local

Municipality

Umzimkhulu

Local

Municipality

Utah Youth

Development

Centre

Magareng

Municipality

ORBIT ARI

& CFE

Engcobo local municipality The Department of

Premier -

Mohokare Thusong

Service Centre

City of

Tshwane

Bronkhorstspr

uit

Dr Nkosazana

Zuma Local

Municipality

Marapyane

Thusong

Service

Centre

INCUBATION FUNDING ALLOCATION PER PROVINCE

42

SUPPORTED INCUBATORS PER PROVINCE

43

INCUBATOR SECTOR LOCATION PROVINCE AMOUNT

EASTERN CAPE

Chemin Chemicals Industry Port Elizabeth ECR 1 800

000,00

Chemin Chemicals Industry East London ECR 1 800

000,00

Furntech Furniture Manufacturing Mthatha ECR 1 478

571,00

SCI Construction Mthatha ECR 1 500

000,00

SCI Construction Port Elizabeth ECR 1 500

000,00

SCI Construction East London ECR 1 500

000,00

iHub ICT Port Elizabeth ECR 2 970

000,00

SANAMI Agro processing Mount Ayliff ECR 2 200

000,00

Ikhala CFE Agriculture Queenstown ECR 3 000

000,00

Lovedale Rapid Incubator Agriculture & Agro processing Alice ECR 1 185

076,00

Automotive Design Tooling Automotive Industry Port Elizabeth ECR 3 500

000,00

Kaya's Cullinary Food Food Technology Port Elizabeth ECR 4 211

145,00

TOTAL R 26 644 792,00


44

FREE STATE

SAMTI Mining & Agricultrural Tooling Bloemfontein Free State R 2 250 000,00

Motheo Rapid Incubator Mixed manufacturing Bloemfontein Free State R 1 185 076,00

Gold Fields CFE Renewable energy Welkom Free State R 1 185 076,00

TOTAL R 4 620 152,00 GAUTENG

Chemin Chemicals Industry Modderfontein Gauteng R 1 800 000,00

Egolibio Life Science Pretoria Gauteng R 3 000 000,00

Furntech Furniture Manufacturing Johannesburg Gauteng R 1 478 571,00

Lepharo Copper, Zinc & Base Metals Springs Gauteng R 2 700 000,00

AIDC Automotive Industry Rosslyn Gauteng R 3 000 000,00

SCI Construction Ekurhuleni Gauteng R 1 500 000,00

SCI Construction Mogale City Gauteng R 1 500 000,00

SCI Construction Pretoria West Gauteng R 1 500 000,00

SMTDC Small-scale manufacturing Soshanguve Gauteng R 2 700 000,00

SBTI ICT Midrand Gauteng R 4 050 000,00

GJA Jewellery manufacturing Lenasia Gauteng R 2 000 000,00

Ekurhuleni Jewellery Incubator Jewellery manufacturing Ekurhuleni Gauteng R 2 000 000,00

BICSA Food Technology Midrand Gauteng R 2 250 000,00

Tuksnovation High Tech Innovation, Engineering & ICT Tshwane Gauteng R 2 000 000,00

EWC CFERI Jewellery manufacturing Katlegong Gauteng R 1 185 076,00

SA Creative Industry Incubator Creative Industries Eersterust Gauteng R 2 500 000,00

Property Point Property services & construction Johannesburg Gauteng R 3 000 000,00

20 Media Creative Industries Johannesburg Gauteng R 3 500 000,00

AIDC Ford Automotive Industry Rosslyn Gauteng R 4 150 000,00

TOTAL R 45 813 647,00


45

KWA ZULU NATAL

DACT Aluminium fabrication & casting Richard's Bay KZN R 2 700 000,00

Furntech Furniture Manufacturing Durban KZN R 1 478 571,00

Furntech Furniture Manufacturing Umzimkhulu KZN R 1 478 571,00

Invotech Mixed high-tech Durban KZN R 2 700 000,00

SCI Construction Durban KZN R 1 500 000,00

SCI Construction Umzimkhulu KZN R 1 500 000,00

SCI Construction Kwa-Mashu KZN R 1 500 000,00

SmartXchange ICT Durban KZN R 2 025 000,00

SmartXchange ICT Ugu KZN R 2 025 000,00

Esayidi CFERI mixed sectors Port Shepstone KZN R 1 185 076,00

DUT CFE Mixed secors Durban KZN R 1 185 076,00

TOTAL R 19 277 294,00


46

LIMPOPO

BBI Bio-fuels Marble Hall Limpopo R 2 500 000,00

SLJI Jewellery manufacturing Polokwane Limpopo R 2 025 000,00

Vhembe CFERI Mixed manufacturing Thohoyandou Limpopo R 1 185 076,00

Matsila Agriculture Levubu Limpopo R 2 340 000,00

Nwanedi New Generation Agriculture Nwanedi Limpopo R 2 500 000,00

TOTAL R 10 550 076,00

MPUMALANGA

Furntech Furniture Manufacturing White River Mpumalanga R 1 478 571,00

MASDT Agriculture Nelspruit Mpumalanga R 2 700 000,00

MSI Stainless Steel Processing Middelburg Mpumalanga R 2 250 000,00

Timbali Floricultrue Nelspruit Mpumalanga R 2 500 000,00

Gert Sibande CFE Hospitality Ermelo Mpumalanga R 1 185 076,00

TOTAL R 10 113 647,00

NORTHERN CAPE

NC Diamond & Jewellery Incubator Jewellery manufacturing Kimberley NC R 2 250 000,00

Northern Cape Rural Rapid Incubator Construction De Aar NC R 1 185 076,00

VUT CFE Leather, footware, welding Upington NC R 1 185 076,00

TOTAL R 4 620 152,00


47

NORTH WEST

TPI Platinum Jewellery manufacturing Rustenburg North WestR 2 250

000,00

Orbit CFERI Automotive Industry Rustenburg North WestR 1 185

076,00 TOTAL R 3 435 076,00

WESTERN CAPE

Furntech Furniture Manufacturing Nyanga WCR 1 478

571,00

Furntech Furniture Manufacturing Cape Town WCR 1 478

571,00

SAREBI Renewable energy Atlantis WCR 2 376

000,00

Savant Advanced manufacturing Cape Town WCR 3 000

000,00

False Bay CFERI Metal fabrication and furniture Muizenberg WCR 1 185

076,00

Incubation 4.0 ICT, Digital & Animation Cape Town WCR 3 500

000,00

One Bio Bio technology Cape Town WCR 4 000

000,00 TOTAL R 17 018 218,00

GRAND TOTAL R 142 093 054,00

INCUBATION BUDGET R 164 358 141,00

VARIANCE R 22 265 087,00

SUMMARY OF ALLOCATIONS PER PROVINCE

48

PROVINCEEDDALLOCATIONS

STP ALLOCATIONSIMEDPSpending/Informal Enterprises

BRANCH ACCESSPOINTS

BRANCH OFFICECOSTS

HR ALLOCATIONS%

Free State45 655 583 4 620 132 2 460 047 22 2 462 064 8

Gauteng40 589 293 45 813 643 7 149 462 23 2 945 371 5

North West44 562 296 3 435 076 5 312 127 14 3 719 420 8

Northern Cape44 065 048 4 620 152 2 647 771 13 3 584 564 8

Eastern Cape5 063 307 26 644 792 4 472 415 29 3 351 265 9

Western Cape61 570 157 17 018 218 3 156 835 21 6 385 558 12

Limpopo47 398 101 10 550 076 4 441 680 15 4 042 704 8

Mpumalanga42 371 062 10 113 647 3 693 923 31 2 685 393 8

KZN69 377 782 19 277 294 7 016 958 30 4 874 783 10

Total400 652 629 142 093 030 40 351 218 198 34 051 122 76

SEFA: MAIN BUSINESS AND FUNDING ACTIVITIES

49

Products Targeted ownership

groups

Sectoral

involvement

• Direct Loans (asset finance, Term

Loans, Revolving loans & Bridging

loans, Purchase Order Product,

Invoice Discounting Product &

Amavulandlela & Inyamazani

Schemes for entrepreneurs with

disabilities & Military Veterans

respectively)

• Wholesale Loans and Equity

(on-lending facilities, Funds & joint

ventures, Micro-finance, Structured

Finance Solutions)

• Business Support (Institutional

strengthening, technical support &

mentorship)

• Credit Guarantees (Credit

Indemnity guarantees & Supplier

guarantees)

• Rental Property

• SMMEs & co-operatives that

are unserved and

underserved by commercial

lenders

− women,

− black people,

− youth,

− Township-based

enterprises,

− rural communities and

− people with disabilities.

• Services (including retail,

wholesale, IT and tourism,

transport logistics);

• Manufacturing (including

agro-processing);

• Agriculture (specifically

land reform beneficiaries

and small-farming

activities).

• Construction (small

construction contractors);

• Mining (specifically small

miners) and

• Green industries

(renewable energy, waste

and recycling management).

SEFA LENDING MODEL

50

SEFA’S KEY FOCUS AREAS FOR 2019/20

51

• Scale up the development impact amongst SMMEs and Co-operatives using innovation and leverage while at the same time contributing to the sustainability of funded clients. To this extent sefa will introduce a blended financing model in partnership with government and the private sector;

• Introduce target lending programmes in economic sectors identified in the June 2019 State of Nation Address for youth owned enterprises and enterprises located in townships and rural communities/villages;

• Scale up and deepen the post-investment support by reducing impairments, improving collections and client sustainability;

• The repositioning of the Direct Lending program and the disposal of the Property portfolio;

• Reduce operating costs, improve efficiencies, build skills and capabilities;

• The development of agile business and management information systems for decision-making and improving customer interaction; and

• Deepening the collaboration with Small Enterprise Development Agency, in particular by providing seamless online services to SMMEs and Co-operative Enterprises and pre- and post-investment support services

LOAN BOOK OUTCOMES

52

Approvals and Disbursements 2019/2020 2020/2021 2021/2022 MTEF 5 Years

Value of Approvals: small &

medium enterprises (R'000)929 784 1 179 040 1 348 989 3 457 813 6 559 920

Value of disbursements: small &

medium enterprises (R'000)793 930 937 121 1 021 738 2 752 789 4 818 560

Enterprise Financed and Jobs

Enterprises Financed and

Jobs Facilitated2019/2020 2020/2021 2021/2022 MTEF 5 Years

No of SMMEs and Co-operatives

Financed 90 178 93 371 96 751 280 300 480 861

No of Jobs Facilitated (created

and sustained)91 997 95 363 98 586 285 946 490 019

LOAN BOOK OUTCOMES CONT..

53

Targeted groups

Support to Targeted Groups 2019/2020 2020/2021 2021/2022 MTEF 5 Years

Disbursements to black-owned

Enterprises (R'000)665 255 769 382 832 885 2 267 522 3 957 612

Disbursements to women-owned

Enterprises (R'000)448 055 515 719 557 339 1 521 113 2 653 040

Disbursements to youth-owned

Enterprises (R'000)239 229 282 224 307 645 829 098 1 451 181

Disbursements to township-

owned Enterprises (R'000)324 254 364 523 390 591 1 079 368 1 876 094

Disbursements to enterprises

owned by entrepreneurs with

Disability (R'000)

15 949 18 815 20 510 55 274 96 745

Disbursements to enterprises

located in rural and village

communities (R'000)

448 055 515 719 557 339 1 521 113 2 653 040

Disbursements to enterprises -

number less than R500k89 952 93 092 96 440 279 484 479 426

SEFA ORGANISATIONAL FOOTPRINT

54

THANK YOU

55

Department of Small Business Development, Seda and Sefa

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