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Limpopo Economic Development Enterprise

Limpopo Economic Development Enterprise. EASTEN CAPE DEVELOPMENT CORPORATION – 02 MAY 2011. Presentation Outline. Purpose of presentation Background Vision Mission Products & Services Targeted Sectors Pricing and Requirements. Purpose of the presentation.

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Limpopo Economic Development Enterprise

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  1. Limpopo Economic Development Enterprise EASTEN CAPE DEVELOPMENT CORPORATION – 02 MAY 2011

  2. Presentation Outline • Purpose of presentation • Background • Vision • Mission • Products & Services • Targeted Sectors • Pricing and • Requirements.

  3. Purpose of the presentation • To highlight the developmental products and services offered by LimDev to SMME’s and Co-operatives within Limpopo Province.

  4. Background • Mandate of LimDev in terms of the Act (Northern Transvaal Corporations Act, Act No.5 of 1994, Section 4) • Encourage • Plan • Finance • Coordinate • Promote • Carry out development of the Province and its people

  5. Our Vision • To be the pre-eminent catalyst and partner in economic growth and empowerment in the Limpopo Province.

  6. Mission of LimDev • Mission • TO Establish and advance a sustainable SMME sector through the facilitation and provision of business and investment opportunities • Main activities • SMME funding and contribution to economic development • Providing guarantees and sureties. (subject to Minister’s approval)

  7. PRODUCTS & SERVICES • SMME Development Finance • Project Development and Property Management • Mining Development • Housing Development finance • Passenger Transport.

  8. Project Development and Property Management Division • LimDev partners with SMME’s on property development. and • It also provide rental space for SMME development(Large and Small Industries and Shopping Complexes)

  9. Housing Development Finance • Risima Housing Finance is a 100% subsidiary of LimDev. • It finance Rural and Urban development And • It contribute towards SMME development by procuring construction services from building contractors.

  10. Mining Development • Corridor Mining Resources is a 100% subsidiary of LimDev. And • It goes into join-ventures with BBBEE in mining projects

  11. Passenger Transport • Great North Transport in a 100% subsidiary of LimDev and it provide public transport. and • It contribute to SMME development through procurement services.

  12. SMME Development Finance • LimDev provide developmental finance to SMMe’s, and • Providing guarantees and sureties. (subject to Minister’s approval) SMME Development Finance is the core business of LimDev

  13. Targeted Sectors Prioritized • Manufacturing • Mining • Tourism • Agriculture ( agro-processing ) • Construction • Retailing • Specialized Business Services • Personal Services • Transport.

  14. Types of Financial Products • The following are types of financial products available for the SMMEs in the Limpopo: • Working Capital Finance • Capital Expenditure Finance • Start up Capital Finance • Equity Capital Finance • Bridging Finance

  15. Working Capital Finance • Purpose • Finance working capital requirements • Stock and/or working materials • Administrative/Operating Expenses • Term: 12 -36 months

  16. Capital Expenditure Finance • Purpose • Finance capital expenditure requirements (yellow assets) • Equipments and machinery • Term: 36- 60 months

  17. Start-up Capital Finance Purpose • Loan Finance of newly discovered business ideas and opportunities • Term • Max. of 36-84 months

  18. Equity Capital Finance (BEE financing) Purpose • Finance purchase of equity/stake in existing businesses • Term • Build-in exit strategy from beginning. Max. period : 36-84 months • Conditions: acquire board seats in the project

  19. Bridging/Procurement Finance Product • Purpose • Cover for immediate demand in goods/services • Finance for procurement orders and contracts from Government at National, provincial and local level • Catering for increased demand during holidays and/or pick periods. • Term: 3 months or period of the contract

  20. CHARGES • Prime-linked interest rate. Thus interest rate is controlled by the risk factor (Min Prime less 3% and Max Prime plus 2%) • Admin fee of 1% limited to R2 500.00 (NCR) OR R3 000.00 VAT inclusive depending on the amount . • Application fee of R500.00 OR R5 000.00 based on the amount requested.

  21. Requirements • The business must be registered either as: • Sole Proprietorship • Partnership • Close Corporation • Private Company • Co-operatives • Viable/Bankable Business Plan • Securities • Deed of Grant / PTO / Title Deed • Investments; Insurance Policy (with surrender value) • Surety ship

  22. Requirements (Cont) • Original SA identity document • Proof of marital status • Proof of residence • valuation fee (over R50 000.00)

  23. Requirements (Cont) • Copyof contract / appointment letter • Business Profile • Financial statements projections • Cash flow projections • Work schedule • Bank statements (Six month period) • Tax clearance certificate • Ck documents or memorandum and articles of association • 10% own contribution on ordinary business.

  24. Summary of SMME’s financed over five year period(2006-2010)

  25. RISIMA HOUSING FINANCE

  26. Great North Transport (2006-2010)

  27. Contact Details • Lebowakgomo: 015-633 4700 • Ritavi : 015-303 1731 • Giyani : 015-812 3111 • Thohoyandou : 015-962 4900 • Polokwane : 015-295 5120

  28. THANK YOU

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