Current Edition >> Archive Section >> Special Features >> 17 - 31 July 2003

Small business boosters

Crafts programme
There are at present over 1 000 formal crafter outlets in South Africa, actively involving at least 1,2 million people in the crafts sector and generating income in the range of R1,8 billion per year. Characteristically this sector consists of homebased operations run by women, mainly located in rural areas. This sector strongly linked to industries such as tourism and the retail home industries, constitutes a means of creating sustainable livelihoods and nurturing BEE's, women's empowerment groups and SMME's. However the sector currently faces a number of challenges. For further information contact:
DTI Contact Centre
Tel: 0861 843 384.
Website: www.thedti.gov.za/offerings/offering/asp?offeringid=224

Agriculture and Agro-processing Programme
The agriculture and agro-processing sector is an important contributor to the South African economy and accounts for about 10% of the entire economy's value of production. This sector absorbs about 425 000 or about 32% of the total number of employees in the manufacturing sector and provides excellent opportunities for SMME, WE and BEE development, especially in such sub-sectors such as floriculture, aquaculture and agro-based chemicals.

Gravity-operated water filter
Scan Water SA's new Institution Kit produces safe drinking water without chemicals or the need for electrical or mechanical peripherals. Operation is by gravity, with the capacity of the filtration system 30 litres. For further information contact Scan Water SA, Tel/Fax: 013-750-2798.

Motheo District Municipality : Budgeting for development

Tremendous entrepreneurial and investment opportunities

The Motheo Region is not only in terms of economic output and cultural intensity the strongest of the five official regions of the Free State province and the most centrally situated province in SA, but it also includes Bloemfontein as the capital city of the province. Please see two maps on the right. As such the Motheo Region actually carries the heartbeat of the Free State-offering therefore tremendous entrepreneurial and investment opportunities.
The Motheo Region with R13,9 billion makes the highest contribution of the five regions to the Free State's GGP - some 31,6% or nearly one-third. The Motheo Region thus offers an immense developmental challenge in terms of local economic development and the promoting and facilitating of small, micro and medium enterprises (SMME's), investment potential, job creation and raising of standard of living. Consequently in order to answer to this challenge, the Executive Mayor of the Motheo District Municipality, Ms. Nontsokolo Mohapi, last month submitted a highly developmentally-orientated budget for the District for 2003/2004.

Moreover, this budget reflects the restructuring of the objectives, set-up and functioning of the Motheo District Municipality away from merely providing infrastructure to service delivery over a wide spectrum to the various communities within the region. Totalling expenditure of R100, 1 million and income of R100,5 million, the budget centres around the Integrated Development Plan (IDP) of the Municipality. Moreover, this budget was construed without levies being raised.

The five main budgeting allocations are:
• Enhance local economic development and job creation - R12,3 million
• Providing and facilitating sustainable infrastructure - R35,9 million
• Investing in the development of people - R4,6 million
• Securing a safe environment - R1,5 million
• Good municipal governance - R45,7 million

In this feature these allocations are set out in more detail, with the overriding purpose to indicate to all entrepreneurs, SMME's, investors and developmentally-orientated persons the tremendous opportunities not only to be created by the implementation of the budget, but also opportunities existing nonetheless in the Motheo Region.
For the Motheo District Municipality, the name of the game is synergization - if various stakeholders and roleplayers can plan and work together with the Municipality on developmental issues, producing an output benefiting all local residents, everybody will be winners. It is about the classic developmental cycle : If there are better and more entrepreneurs, SMME's and investors, the level of economic activity and money flow increases, thus creating jobs, which in turn leads to raising of standard of living, which again feeds back to stronger buying power and consumer marketing.

Profile of Motheo
Motheo is the Sesotho for “foundation” or “ strong base of a building” and is derived from the geographic positioning at the heart of the economic and industrial development of the province. Three local municipalities fall within the jurisdiction of the Motheo Region, with the following towns under them respectively:

• Mangaung Local Municipality

Bloemfontein : Known as the “City of Roses”, it is the sixth largest city in SA and the capital of the Free State in all respects. It is also the seat of the Appeal Court, while forming the cultural, tertiary educational and shopping hub of the province. Also from a historical point of view, Bloemfontein/Mangaung ranks top of the list.
Botshabelo : 45km from Bloemfontein on the N8 road to Lesotho it is the largest township settlement in the Free State and the second largest after Soweto. Botshabelo contains a massive industrial complex comprising 240 000 m² of floor space, currently 100% occupied by a total of 154 factories.
Thaba 'Nchu : Situated 12km from Botshabelo, this town is a site for luxury hotels and casino's, with the Maria Moroka Nature Reserve surrounding Thaba 'Nchu Sun and Setlogelo Dam. At Thaba 'Nchu, industrial development is coming on stream, with the revamped Selosesha Industrial Park, the 13 000m² Ratlou shopping complex, an office block, houses and blocks of flats.

• Mantsopa Local Municipality

It comprises the towns of Ladybrand, Hobhouse, Excelsior, Tweespruit and Thaba Phatswa. The area is also traversed by the Maluti Route on the R26 from Kwazulu Natal via the Eastern Free State, up to the Eastern Cape highlands and the Lesotho Kingdom. Ladybrand especially is an economically bustling town with high property prices and sometimes being populary referred to as the “capital” of Lesotho.

• Naledi Local Municipality
Stretched along the Highlands of the Maluti Route, the R26 Route winds through this area. The Naledi area comprises of Dewetsdorp, Wepener and Vanstadensrus.

Interview with Executive Mayor

The Motheo District Council's Budget for 2003/4 was tabled on 25 June by the Executive Mayor, Councillor Nontsokolo Mohapi, budgeting for expenditure of R100,1 million and income of R100,5 million. It was acclaimed in some headlines as local economic developmental, in line with national directives and overall investor friendly.
Considering the escalating jobless figure in the Free State, the poorest of the poor provinces in South Africa, the Free State Business Bulletin approached Me. Mohapi with the following questions, the replies to which are reproduced below.

Which three or four salient points would you highlight as the most positive features of this year's budget ?

Our Integrated Development Plan (IDP) is the most important driving force in the operations of the Motheo District Municipality. Our budget is mainly based on this, yet responsive to other critical emerging needs that would prove capable of sustaining our efforts in the pursuit of development in the long run. Our priorities, as pronounced in the IDP and as budgeted for, are: Enhancing local economic development and job creation, providing and facilitating sustainable infrastructure, investment in the development of people, securing a safe and secure environment and ensuring good municipal governance.

Accepting that more and stronger entrepreneurship and SMME development is the major contributor to economic growth, poverty alleviation and job creation, how stimulating and supporting is this budget in regard to local economic development (LED) ?

It is not coincidental that this is listed at the top in our budget speech document, as one of the key strategies in our IDP and therefore a key priority of the Motheo District Municipality. In this financial year, 2003-2004, we have budgeted for R12 339 000 for local economic development. We are effectively witnessing a substantial increase in comparison with the previous financial year (2002-2003) - an increase of R1 1 405 000. Furthermore, one has to consider that many other municipal activities will be directly and indirectly contributing to LED, i.e. in areas such as benefits of international investment, support from capacity building and empowerment agencies, etc. There are many other spin-offs which, if correctly assessed, are functions of LED.

In a nutshell, how geared is Motheo to attract much-needed investment, internationally and nationally ?

There are a number of initiatives currently underway that are focused in this direction. Motheo District Municipality is taking full advantage of the current processes of creation of favourable terms of trade that our country's multilateral diplomacy and business initiatives are delivering. These are processes through regimes such as the NEPAD process, the AGOA process, ets. Also we are interacting with our country's relations with regional economic power blocks such as the EU, ASEAN, MERCOSUR etc. and would take full advantage of favourable and symmetrical investment they are likely to bring. Our international investment seeking strategy is informed by this. We are not by any chance neglecting the national investment environment. We will duly announce these when they mature.

Briefly, what is your message to all entrepreneurial-orientated and business-active people in the Motheo District Municipal area ?

We want our people to take example from success models such as the Black Like Me product. We need to create real entrepreneurs in our district, people who do not rely on Governmental help to make things happen, but people who appreciate the extra effort taken by their Government to help them make things happen. We are aware of the difficulties that are still serving as barriers to entry into certain markets. However, we encourage our people to make head-way so that we can be able to assist those who are genuinely willing to take part. As much as transformation of our economy is an essential and much needed phase to undergo, Government cannot be seen to be changing things for people, but it must be about people taking initiative and therefore justifying Government interventions when it becomes possible to remove the barriers to entry. Real entrepreneurs are highly needed by the growing economy of the district.

Planning ahead
The Motheo District Municipality is determined to continue on its adjusted course towards effective service delivery in accordance with the multi-faceted needs of its residents. For the latter a better life simply has to be created. Although the challenges are huge, the potential for development is likewise tremendous and exciting. Towards realising this potential, the Motheo District Council is a ready partner to all stakeholders.
To this end, especially entrepreneurship and investments are regarded as key elements. Therefore the District Council in particular encourages all entrepreneurs and would-be entrepreneurs within its boundaries to do their best to realise their full potential and in this connection to consult with the Council as regards any proposals, constraints and incentives. The same applies, to prospective investors from outside the Motheo Region. The competitive advantages of the Motheo Region are legion - very central to any other location in SA, excellent infrastructure, renowned social facilities, vast labour resources, abundant water supplies, some of the lowest crime rates in SA, real quality of life, unique natural environmental endowment, vast business establishment incentives from national down to local level, etc.

In short, the Motheo District has what it takes to offer a living comparable to the best in SA - it only requires the individual will to make it happen. In conclusion, to illustrate the magnificent diversity of the Motheo Region, the following summary of just some of the developmental potential is offered:

• Bloemfontein
- Naval Hill is the only nature and game reserve in the world completely within city bounds.
- At least three festivals of national interest are annually hosted in the city - the Rose Festival, Macufe Festival and the Volksblad Kunstefees.
- A variety of some of the best shopping centres in SA.
- The world class Sand du Plessis Theatre for performing arts.
- The Free State University, Technikon Free State, schools, hospitals and sports amenities ranking amongst the top in SA.
- Excellently suited for the conference and accommodation industry, with top notch conference centres, some 250 guesthouses, Bloemfontein Airport, etc.
- Extensive industrial areas at Hamilton, East End, Bloemdustria, etc.
- At Mangaung, exciting township tours and hospitable amenties are being offered.
- Numerous historical sights.

• Botshabelo
- Lively arts & crafts industry.
- New investments and incentives to facilitate new enterprises, especially in textiles and related industries.

• Thaba 'Nchu
- Newly restored industrial premises.
- Arts & crafts
- Mmabana Cultural Centre drama, arts, ceremics, beadwork, silk painting, etc.
- Historical sights
- Ladybrand
- Many top class tourist products, including holiday farms, guesthouses, restaurants, conference and team-building centres, hiking trails, etc.
- Tandjiesberg Protected Rock Art Site.

• Others
- Agro-processing
- Rustfontein Dam & Resort
- Maselspoort Resort (near Bloemfontein)
- Soetdoring Game Reserve (Bloemfontein)
- Father Claerhout Art Gallery at Tweespruit
- Koranna Berg Hiking Trail near Excelsior
- Wimaweh Resort near Thaba Phatshwa
- Leeu River Dam
- Caledon Nature Reserve (Wepener)
- Welbedacht Dam
- Battlefield sites and war memorials
- Egmont Mook Dam at Vanstadensrus
- Water sports
- For the outdoor enthusiast to pick & choose

This constitutes merely a keyhole peep at the developmental potential within the Motheo Region.
The foundation in bridging the divide !

Spoornet in the Free State bridging also socio-economic divides

In assisting to address practically urgent socio-economic needs in the Free State province, in particular HIV/Aids and unemployment, Spoornet has just launched the Tsholofelo Project, consisting of two components, viz. the Tsholofelo HIV/Aids Care Centre and the Tsholofelo Toilet Roll Manufacturing Plant. Both are based at the Phetoho Community Centre, Lovedale Road, Batho, Mangaung. The official launch on 11 July 2003 was attended by a wide array of stakeholders and their dignatories.
The establishment of the two facilities and their initial putting into operation has financially been made possible through a grant by Spoornet Free States Strategy and Communications Department. The initial idea originated from the desire to create home-based care for HIV/Aids sufferers from the informal settlements of Mangaung, while at the same time establishing an income-generating job-creation and sustaining project in the form of a mechanised toilet roll manufacturing unit.

BUSINESS PLAN FOR PROJECT TSHOLOFELO

Care Centre
Vision/Mission
1. To establish a community care centre.
2. To improve the quality of life for people with Aids.
3. To care for the destitute terminally ill with good non-judgemental palliative care.
4. To address their spiritual and emotional needs.
5. To restore and maintain human dignity.

Historical background
Two people instrumental in initiating the Tsholofelo Project, were Daphne Martins and Paul Koloti. Daphne, previously employed by FAMSA and Child Welfare, joined Red Cross in 1989 as first aid and home care instructer. She became the regional manager Operations / Programmes/training for Red Cross Free State. Together with Paul Koloti a Red Cross youth structure was established in Bloemfontein, Thaba Nchu, Botshabelo, Reddersburg, Kimberley and Goldfields. Programmes that were implemented were first aid, home care Aids/STD's. Alcohol and drug abuse, teenage pregnancies, health expo's, workshops and youth camps. Paul started with Red Cross as a volunteer and was employed as Youth/Aids co-ordinator for the Free State and later also became branch manager of Red Cross Welkom. His duties involved first aid services, first aid, training, Aids and STD's awareness and information youth workshops and health expo's. Together Daphne and Paul spearheaded the initiative for Tsholofelo, registering the project with both the Dept. of Social Services and the Dept. of Labour and teaming up with Spoornet Free State to make it come true.

Implementation
The physical facilities for the project, viz. building, ablution block and kitchen, were made available by the Christian Revival Church at their Phetoho Community Centre, Lovedale Road, Batho. The Care Centre's inner walls were sanded and painted by Spoornet and home carers,who also did the cleaning of floors and windows and the painting of the outer walls and roofs. 24 beds and beside cupboards were donated by Oranje Hospital, while mattresses, bedding, blankets, duvets and curtains have been purchased. It eventuated in the Centre consisting of two wings each with 12 beds. Patients are being identified to come into the Care Centre for holistic care by the carers that all have had home-based care training according to the criteria of the Department of Health.

- Budget for 30 patients
Phase 1: R260 000 per annum

Income-generating Project
Business plan
1. To establish an income generating programme linked to the care centre for Destitute and terminally-ill patients and to sustain the care centre financially.
2. To create job opportunities for HIV infected people to generate an income for themselves.
3. To market the product to the communities at an affordable price.
4. To equip trainees with manufacturing skills.
5. Free installation and training by arrangement available.
6. To ensure that this project not only covers the running costs of the care centre, but also becomes financially viable to sustain itself and to plan for expansion.

Brief description of operation
1. One ton of A grade recycled white paper makes approximately 13 500 rolls of single ply x 24 meter toilet rolls or 11 500 rolls of single ply x 350 sheets.
2. Manufacturing cost about 45 cents per roll. Makes approximately 40 rolls per minute, depending on model/speed.
3.Government, hospitals, clinics, municipalities, schools and big companies have a policy in place to support small businesses.
4. The possibilities are endless-marketing plays a key role.

- Budgeted expenditure: Total R 192 896

Implementation
The machine was transported in three sections from Cape Town, but it took a crane and a pallet jack to put it in place in the factory at Mangaung. A technician from the manufacturer assembled the machine, got it operational and provided specialist training to local staff.

Marketing
The toilet rolls are being marketed to the commercial and public sector at highly competitive prices, as follows:
- Toilet rolls each : R 1,50
- Toilet rolls per 10 pack : R14,00
- Toilet rolls per 48 pack : R60,00
Bulk orders are especially being welcomed. Ordering can be done at 083 538 3889.

JOB CREATION
At this stage the machine has two operators (male) and one packer (female), while the Care Centre will, when fully functional, have 16 homecarers rendering a 24 hour caring service. When 100% operational, a total of 19 job opportunities for unemployed members of the community would have been created. After that, the intention is to grow even further. Daphne Martin points out that there are numerous ways in which private companies, individuals and public institutions can get involved with Project Tsholofelo. They are welcome to contact her at 083 538 3889 and discuss synergization.

WAY FORWARD
To sum up, the manager: Spoornet Free State Strategy & Communications Department, Ms. Sheila Litheko, says while the Tsholofelo Project does of course not offer a final solution, it is a key strategic step towards bridging life-threatening socio-economic divides in the Free State community fabric. She sincerely hopes the project will progress from strength to strength and will also induce other corporate institutions to follow in similar vein.

Empowering consumers in the province

Mosebetsi o moholo oo e leng kgale o emetswe wa ho kenya tshebetsong kaho botjha ya dipalangwang tsa ditekesi ke Mmuso wa Afrika Borwa qetellong o se o qadile mme o qadile jwalo ka Provinsi ya Gauteng eo e neng e le lenaneng. Karolo ya pele ya mangolo a tumello e fang beng ba ditekesi tsela ya ho amohelwa ho latela lenane la Mmuso la kaho botjha ya indasteri ya ditekesi e qadile ka Mmesa ha hone ho ntshwa dikopo tse 1 551 ho la Gauteng. Ho ntshuwa ha mangolo ana a tumello ho bonwa e le mohato o mong wa mmuso wa ho theha moralo o kopanetsweng wa dipalangwang Afrika Borwa. Projeke ena ya kaho botjha ya dipalangwang e jang R29 bilione nakong ya dilemo tse nne e tlile ho fetola mokgwa wa ditekesi wa kgale wa diminibase tse palamisang batho ba 18 tse ka bang 120 000 naha ka bophara mme o nkelwe sebaka ke makoloi a 85 000 a ditulo tse 18 le tse 35. Tsela ya ditefello tsa makoloi ana a matjha e motjheng ha jwale a lebelletsweng hore a tla ba R160 000 le R380 000 koloi ka nngwe.

Baamohedi bana ba 1 551 ke karolo ya sehlopha sa beng ba ditekesi ba 20 000 provinsing ya Gauteng bao ba nang le matla a ho sebetsa ho latela Tshebetso e Ikgethileng ya Molao (Special Legislation Process SLP) le ho latela Letsholo la Eba Molaong (Be Legal). Leha Letsholo la Eba Molaong, jwalo ka ha le tshebahala hape e le Operation Vuka le ile la letelwa ke Tshebetso e Ikgethileng ya Molao mme tshebetso tsena ka bobedi di ikemiseditse ho laola, ho beha tseleng e napehetseng le ho ntlafatsa indasteri ya ditekesi. Mekgatlo e 220 ya ditekesi e ngodisitsweng Gauteng e emela beng ba ditekesi ba 34 000 ka makoloi a 45 000. Ho ba 20 000 ba entseng dikopo tsa mangolo ana a matjha a tumello ke dikopo feela tse 14 000 tse atlehileng ho bolelang hore tse 12 449 di tlile ho ntshwa dikgweding tse tlang. Potso eo re ipotsang yona ke hore sena se tla etsahala neng Freistata le hore ke bo mang ba tlang ho fumana mangolo ana a tumello ? Re ipotsa hape hore tshebetso ena e ntjha, e tlile hoba le kgahlamelo efe indastering ya ditekesi Freistata ha diminibase tsa kgale di nkelwa sebaka ke mofuta ona o motjha wa ditekesi.