The Eastern Cape Development Corporation has opened its wallet to a total of 360 small businesses which received loans and financial incentives worth R99.95m in the 2023/2024 financial year.
A further R91.6m was leveraged for direct investment into micro, small, and medium enterprises (MSMEs) in the period.
The corporation’s CEO, Ayanda Wakaba, said 570 jobs were created through loan funding and 1,503 through financial incentives, making a total of 2,073.
In 2023/2024, a total of 1,007 enterprises received business support interventions, of which 369 businesses received direct business development services.
The corporation also facilitated investments of R1.032bn for the Eastern Cape due to substantial investments in the renewable energy sector.
It also facilitated exports valued at R213m in the year.
Announcing the corporation’s 2023/2024 financial year results on Monday, Wakaba said R81m was made available from the Eastern Cape Economic Development Fund to fund catalytic economic development projects and for the extension of finance to Eastern Cape businesses.
A total of R60m was leveraged through partnerships and co-funding agreements, with 12 catalytic projects supported.
Five feasibility studies with values of more than R50m were conducted.
“During the 2023/2024 financial year, the ECDC committed its resources to drive increased investment and trade.
“It supported small business growth, competitiveness and productivity, improving sector co-ordination and development, and transforming the property portfolio into a competitive industry and platform to activate vibrant local economic activity.
“The ECDC maintained a careful balancing act between its development posture and sustainability imperatives.
“This resulted in the organisation maintaining its general financial health, with total assets exceeding total liabilities by R1.3bn.
“The ECDC also received a ninth successive unqualified audit opinion in 2023/2024.”
Wakaba said the R99.95m disbursed through loans and financial incentives comprised R47m in loans, R21.2m disbursed through the Imvaba Co-operatives Fund, R14.8m through the Eastern Cape Jobs Stimulus Fund, R1.05m from the Social Enterprise Replenishable Financial Support Programme and R15.9m from the Small Towns, Township and Rural Enterprise Support Programme.
The R47m in loans went to 96 businesses, and a loan collection rate of 80.2% was achieved.
The supply and delivery services sector accounted for R33.5m of the disbursements, while R8.1m went to those in agriculture, R5m to retail and R451,203 to the construction sector.
The Nelson Mandela Bay metro received R18.6m of the disbursements, while R16.8m went to businesses in the Amathole district, R8.5m to the OR Tambo district, R1.8m to businesses in the Chris Hani district, R1.1m to those in the Alfred Nzo district and R261,687 to businesses in the Joe Gqabi district.
The corporation also approved R22.1m for disbursement to 51 co-operatives, with R21.2m of the funds disbursed during the review period.
The ECDC disbursed R14.8m through the Jobs Stimulus Fund, which it manages to incentivise the retention and saving of jobs in distressed businesses.
The ECDC facilitated the creation of 1,325 jobs through investment and trade promotion activities, while 188 provincial businesses took part in export promotion activities organised by the corporation.
In September 2023, the ECDC hosted the third Eastern Cape Investment Conference at which R127bn in new investment commitments into the Eastern Cape were announced from 18 investment declarations.
“The property business is resilient and has responded positively to strategic interventions,” Wakaba said.
“The ECDC recorded a rental collection of 60% as a percentage of billing.
“The disposal of noncore assets and the refurbishment of properties should further improve yields in the new financial year.
“The corporation’s ‘capital raise programme’ received R136m from the Eastern Cape government for the refurbishment of the property portfolio.
“The programme resulted in professional teams being appointed to the value of R65m for 14 clusters of refurbishment projects.”
The ECDC raised R28.4m from the disposal of noncore property assets.
Wakaba said the corporation planned to dispose of the remaining 109 noncore properties over the next two financial years.
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