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The Nelson Mandela Bay Business Chamber is hosting the first Kasi Bizconnect event on 16 May 2024 in collaboration with other stakeholders to unlock developmental opportunities for township based businesses in the Metro. 

The event is designed for both formal and informal small businesses operating in various townships across Nelson Mandela Bay.

With government having identified the township economy as one of the potential drivers to spur job creation, social stability and inclusive economic growth in South Africa, the Chamber has partnered with the Eastern Cape Development Corporation (ECDC), Standard Bank and Kasi Talks to drive awareness of growth and sustainability interventions available to the sector by providing them with developmental information and opportunities, insights, business growth engagements and networking opportunities. The session will cover access to markets, supplier and enterprise development opportunities, business support services, and funding, among others. Through this engagement, the businesses will get an opportunity to network with each other and create meaningful linkages. 

According to Roger Wilco’s 2023 Township CX Report, the total market value of the township economy is estimated to be R900 billion with approximately 60% of the market considered formal and 40% informal. Around R150 billion in cash is spent at the estimated 150 000 spaza shops every year, which contribute as much as 5.2% to South Africa’s GDP and employ 2.6 million people.

The report further highlights that testimony to its potential, big retailers are seeking to tap into the township economy with big brands emulating the spaza shop model by offering smaller-format stores constructed from shipping containers in a bid to get closer to where its shoppers live.

“The township micro and informal sector, which employs many workers and traders, is often overlooked despite its importance to the economy. For instance, according to Thwala, Masiya and Lubinga (2023) report in the International Journal of Sociology and Social Policy, the food business in the informal sector is estimated to be worth R87 billion annually and has been around for 10-20 years. The residential backroom renting sector is worth approximately R30 billion. This is sector is estimated to employ 2.5 million people,” says Denise van Huyssteen, Chambers chief executive. 

She further adds that many of these businesses are born out of economic hardship and referred to as necessity enterprises, are often not compliant with funding requirements and their growth is generally stagnant.

Various factors contribute to this, including regulatory/legal barriers, deficiencies in the physical environment and infrastructure, locational disadvantages, limited links to wider value chains, inappropriate land use management systems, red tape and cumbersome bureaucratic processes, lack of access to finance and limited government support, crime and negative social attitudes, and the tough market environment as a result of intense competition from other small and large businesses.

“Therefore, our intention is to provide support to them in terms of formalising their businesses, developing their skills and to become compliant with funding requirements, and turn their operation from necessity to opportunity based businesses,” says Van Huyssteen.

The Chamber is an inclusive business organisation which represents businesses of various sizes, both formal and informal. “We’re planning to continue creating these interventions and offerings targeting township based businesses because we recognise the importance of creating nurturing networks.”

Kasi Talks founder Siya Mandla says they are extremely excited to be working in collaboration with the Chamber, Standard Bank and ECDC in our pursuit of positioning the Township Economy as the pinnacle of our country’s economic growth.

“We are of the opinion that Townships, as economic zones, have a critical role to play in driving economic growth, job creation and promotion of entrepreneurship. It is in this background that we are hosting our first Kasi BizConnect, where township entrepreneurs are encouraged to come and network with others,” says Mandla.

“We strongly believe that the Township Economy is open for business.”

Jonty Bouw, Standard Bank’s Head of Enterprise Banking in the Eastern Cape says “we are pleased to be working in collaboration with the Chamber, ECDC and Kasi Talks for the first Kasi BizConnect. This platform brings together local entrepreneurs and key stakeholders in constructive dialogue which will unlock opportunities for Township Economic Growth. We look forward to sharing information on our Enterprise Development solutions in addressing some of the key challenges faced by small businesses, which we believe will enable them for growth.”

The Nelson Mandela Bay Business Chamber and Standard Bank have extended their partnership for the Chamber’s landmark Entrepreneurship Desk.

Standard Bank sponsored the Desk when it was first launched in 2022 and supported its initiatives to ensure its sustainability.

“We are extremely delighted that our anchor partner Standard Bank is committed to supporting the Entrepreneurship Desk, a landmark intervention that continues to provide critical support to Micro, Small and Medium Enterprises (MSMEs) in the Metro. This is pivotal as MSMEs have a significant role to play in South Africa,” says Lunga Mjodo, Chamber’s Business Information Manager.

He further highlights that the challenges MSMEs face are well documented and these include a high failure rate among new enterprises, restricted access to finance, and a skills deficit.

“These inefficiencies and challenges prohibit these MSMEs from taking their rightful place by addressing high unemployment, widening poverty gap, high crime levels, and an economy that is growing lower than the required pace. Therefore, developing and supporting MSMEs cannot be overstated,” says Mjodo.

Since its inception, the Desk has awarded two MSMEs with the Entrepreneur of the Year title based on their exponential growth and has further facilitated funding opportunities, linked MSMEs in distress with pro bono service providers for one-on-one consultations, introduced the Entrepreneurship Desk accelerator programme, facilitated trade opportunities, created business to business linkages, and hosted various workshops designed to upskill the MSMEs.

To date, 250 Micro, Small and Medium Enterprises (MSMEs) are registered with the Desk and receive tailored support to sustain their businesses for further growth and job creation. The businesses are 65% black owned, and 52% are female owned, and employ 1507 employees. They have a combined annual turnover of over R338 million.

Brenda Moduka, managing director of Atlega for Women Projects Enterprise which is registered with the Desk, says her company joined the Entrepreneurship Desk in July 2022.

“It’s one of the best decisions I have taken to date to impact the growth of my company. Through the Desk, we have had access to the Thinkubate programme, received assistance with our IR compliance and also restructured the company’s strategy and expanded our clientele in the process. We also moved from a 200m2 space to 500m2 space through linkages secured through the Chamber,” says Moduka.

Commenting on the partnership, Leigh-Anne De Witt, Standard Bank’s Executive Head for Business Clients Coverage in the Eastern Cape says they are excited to be spearheading the Entrepreneurship Accelerator Programme in collaboration with the Chamber and other stakeholders.

”There is an increasing need to inform and empower business owners with information that will enable and grow their businesses. The programme is aimed at addressing key challenges faced by small businesses in areas of management, compliance and information on how to access funding as well as other financial solutions to ensure business sustainability. The workshops expose the entrepreneurs to our wealth management specialists who elaborate on topics such as Succession Planning, Investment Management as well as Risk Management. MSME’s can also look forward to a free financial needs analysis including information on our Business Solar Loan offering, Thinkubate mentorship programme and Enterprise Development solutions” says De Witt.

This continued partnership between the Chamber and Standard Bank exemplifies a commitment to fostering entrepreneurship and driving economic empowerment in the region, ultimately contributing to South Africa’s broader socio-economic development goals.

The Nelson Mandela Bay Business Chamber has entered into a partnership with mobile telecommunications provider MTN to sponsor the Entrepreneurship Desk, alongside Standard Bank and Borbet SA.

The Entrepreneurship Desk acts as a single contact where small business growth and sustainability interventions are housed. These include pro bono one-on-one advisory support; access to market; entrepreneurial skills development; access to finance; and business to business linkages among others. The Desk further drives awareness of existing developmental opportunities in the entrepreneurial ecosystem and connects small businesses with key strategic stakeholders.

“We are delighted that MTN has partnered with us to strengthen our Entrepreneurship Desk, and to support our 250 MSMEs that are registered with the Desk, a number that increases on weekly basis which is a testament to the importance of the Desk and its related interventions,” says Lunga Mjodo, Chamber Business Information Manager.

Mjodo further indicates that “this partnership strengthens the sustainability of the Desk, enabling us to further stimulate trade opportunities for our MSMEs. Creating a growing cohort of MSMEs can assist us tackle the challenge of rising unemployment, while leveraging on their innovation for economic development”.

He says that there is tremendous potential for South African MSMEs to provide economic growth, more inclusion, job creation, and a more dynamic economy. They require adequate support to equip them with the necessary skills, business linkages, trade opportunities, and funding among others to realise this potential. The Entrepreneurship Desk can be used as a vehicle that supports a cohort of sustainable, and scaling enterprises that create job opportunities, solve societal challenges, and contribute to the economic development of Nelson Mandela Bay.

This initiative aligns with broader efforts to harness the transformative power of entrepreneurship in advancing South Africa’s developmental agenda.

“In line with our ambition to enable the benefits of a modern connected life to everyone and our commitment to bridging the digital divide, MTN is very excited about this Partnership and we look forward to growing it further. We also look forward to helping MSMEs to digitise their businesses through our various ICT Solutions,” says Solly Mbindela, Head of Enterprise Business Unit, MTN Eastern Cape Region.

This week marks the second anniversary of the Chamber’s Entrepreneurship Desk which has grown exponentially since its launch in April 2022.

To date, 250 Micro, Small and Medium Enterprises (MSMEs) are registered with the Desk and receive tailored support to sustain their businesses for further growth and job creation. The businesses are 65% black owned, and 52% are female owned, and employ 1507 employees. They have a combined annual turnover of over R338 million. 

Sponsored by Borbet SA and Standard Bank, the Desk acts as a single platform where business support, growth and sustainability initiatives are housed. This entails free access to legal consultation on commercial matters, various skills training workshops, networking events and business breakfasts, access to information sessions with various funding entities both private and public, and access to a dedicated resource that responds to their queries and continuously shares trade opportunities.

“Small businesses remain the backbone of the economy and play a critical role in terms of driving innovation, problem solving, job creation, contribution to the GDP, imports and exports, and local economic development. Through the Entrepreneurship Desk’s pro bono interventions, we have managed to support a cohort of sustainable and growing SMMEs who have received advisory support, skills enhancement, business-to-business linkages, and have been connected to various opportunities,” says Lunga Mjodo, the Chamber’s Business Information Manager. “We are very grateful to our members who are selflessly providing this type of support in order to help other businesses succeed, and for enabling the Desk to achieve this milestone of two years of operation.”

Mjodo further highlights that the Desk has also introduced the Entrepreneurship Accelerator Programme. “The programme is threefold, firstly it determines business gaps through business needs analysis; secondly, it provides entrepreneurial, leadership, and management skills development with a focus on the generic gaps identified; and lastly, it positions these MSMEs to access funding.”

The primary target MSMEs of the programme are businesses who have an annual turnover of R500 000 and have been in operation for a minimum of 12 months.

“It also focuses on compliance and growth matrix by identifying critical gaps within small businesses. This is an analytical approach designed to assess the strengths and weaknesses of Micro, Small, and Medium Enterprises (MSMEs), ensuring they meet regulatory requirements, develop growth strategies and identify areas that need improvement for sustainable growth,” says Mjodo.

The final stage of the programme involves positioning small businesses to access funding, which is achieved through collaboration with Standard Bank and the Small Enterprise Finance Agency (SEFA).

The programme is designed as a multi-stage process, moving from skills development to addressing compliance issues and finally positioning businesses for funding opportunities. The collaboration with Standard Bank shows commitment to providing tangible support for the growth and sustainability of small businesses in the Metro.

Standard Banks’s Executive Head, Business Clients Coverage Eastern Cape, Leigh-Anne De Witt, says that as a corporate partners with the Nelson Mandela Bay Business Chamber, they seek to attract, grow, enable and retain MSMEs through join initiatives to stimulate enterprise development.

“The aim of these programmes is to assist entrepreneurs to navigate the financial aspects of their business in both good and bad times. We would like to leverage our networks and specialists to assist entrepreneurs with access to markets, supplier development and trade finance to facilitate exports and imports, to name a few,” says De Witt.