NATIONAL ASSEMBLY
WRITTEN REPLY
QUESTION NO 615
DATE OF PUBLICATION: 27 MARCH 2013
Mr K S Mubu (DA) to ask the Minister of Economic Development:
What is he doing to provide support to locally owned small-scale
shops, especially in informal settlements? NW773E
REPLY
Support to locally owned small-scale shops are provided through the Small
Enterprise Finance Agency (sefa).
The support includes the following:
- Forming partnerships with business chambers based in informal
settlements that target small business owners (e.g. partnership in
Dieploot called Noweto Business Chamber);
- Providing financial and mentorship support to small scale shops that
are affected by the establishment of shopping malls in townships (e.g.
Orange Farm where sefa will provide rental guarantees and funding of
working capital to support businesses that want to establish
themselves in the mall);
- sefa through its microfinance intermediaries (such as the Small
Enterprise Foundation) target and support small scale businesses
operating in informal settlements and rural areas;
- sefa conducts workshops and presentations to promote financial and non-
financial support it is able to provide to small scale shops as part
of its outreach campaigns (e.g. Umlazi in KZN and Caroline in
Mpumalanga).
A few examples of support provided to locally owned small-scale shops and
related activities are as follows:-
|PROVINCE |BENEFICIARY |LOCATION |NATURE OF SUPPORT |
|Eastern Cape|Thandeka |Mdantsane |Small shop owner received a |
| |Mxakaza |Township |loan of R3 500 |
|Western Cape|Fundiswa |Langa (Kwezi |Provided a loan of R5 500 to |
| |Nopkikie |Hostel) |sell fast food |
|Mpumalanga |Elizabeth Xulu |Phakamani |Received a loan of R4 800 for|
| | | |her dressmaking shop. |
| | | |Dresses are produced and sold|
| | | |from the same premises |
|Limpopo |Rachel Debeila |Rural Limpopo|Received a loan of R8 000 to |
| | | |establish a dressmaking shop.|
| | | |Dresses produced and sold |
| | | |from the same premises |
|Gauteng |Nancy Lekube |Mamelodi |Loan provided for a day-care |
| | | |centre which employs six |
| | | |full-time employees |
|Free State |Selloane Mohapi|Botshabelo |Loan of R1 500 as working |
| | | |capital for his tuck-shop |
|Kwa-Zulu |Bongani |Engqungqumni |Loan of R 2 000 for |
|Natal | | |additional working capital |
| | | |for his tuck-shop |
sefa has 11 regional offices strategically located across South Africa, in
order to enhance sefaâs services to its target market including people
living in rural areas, informal settlements and in townships, sefa is
forming partnerships with various role players including rolling out a
further 9 branches/satellite offices per annum (to a maximum of 48) which
would be co-located within seda or IDC branch offices. In addition
partnerships will be established with Local Economic Development offices to
achieve a wider distribution and access.