NMBBC

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.

The Presidents' Debate panel discussion which will take place at the Annual General Meeting of the Nelson Mandela Bay Business Chamber on 06 June, 2024, promises to be a significant and insightful event, focusing on the potential of Nelson Mandela Bay as the automotive hub on the African continent.

The event will feature prominent business leaders, Martina Biene (President of AAAM and MD and Chairperson of Volkswagen Group Africa), Billy Tom (Naamsa President and President and CEO of Isuzu Motors South Africa) and Loyiso Dotwana (Chamber President and Executive Director of Nako Engineering). The discussion will delve into the Metro’s potential as the automotive hub and explore some of the challenges facing manufacturing in South Africa and the Metro. It will further probe potential actions which can be taken to unlock the Bay’s potential to become the continent’s automotive and manufacturing hub. 

Notably, this is the first time that both the presidents of AAAM and Nacaam are from Nelson Mandela Bay based companies.

The local automotive industry is a vital economic driver, representing 41% of auto manufacturing employment in South Africa. Volkswagen Group Africa, the largest manufacturer in the country, which recently announced that it will be undertaking a R4 billion investment to produce a compact SUV, holds a significant share of 24.3%. Almost half of the country’s automotive component manufacturers are located in the Metro.  Additional investment in the local automotive sector is set to follow with Stellantis establishing a R3 billion light commercial vehicle plant in the Bay.

The South African automotive industry is celebrating its centenary this year and the Metro has played an important role in this regard with the first vehicle assembly manufacturing plant in the country being established here by the Ford Motor Company, and two years later by General Motors. Volkswagen set up a manufacturing plant in the metro in 1951 to build the legendary Beetle.

“The upcoming debate marks an important moment for the Chamber, the Bay and the country at large as the calibre of participants represents some of the leading organisations that are at the coalface of the automotive sector nationally. More importantly, the platform provides an opportunity to have an open conversation about the challenges facing the automotive industry and how the private sector and government can collaborate in order to step up efforts to retain and attract investment and jobs,” says Denise van Huyssteen, Chamber’s Chief Executive.

The automotive sector is facing significant challenges as it navigates the complex path towards the assembly of new energy vehicles and rapid technological advancements which are resulting in major global shifts in the automotive sector. South Africa faces the added challenges of adopting new energy vehicle technology due to infrastructure gaps and high re-engineering and logistics costs.

Other critical issues include the reliability and quality of power supply and the general state of water, sanitation and electricity infrastructure.

“The current business environment is exceptionally tough with challenges coming from all fronts. It is thus vital that all the stakeholders collaborate to quickly find solutions to these challenges and retain and grow the industrialisation and economic development of in the country and our local economy, which is very much anchored by the manufacturing sector. As such, we see the Presidents Debate delving deeper into these issues to explore viable solutions to cushion the industry against the radically changed operating environment and reorientate it towards a more agile, receptive and more innovative growth trajectory,” says Van Huyssteen.

The Perseverance Cluster, the trailblazer which ignited the geographic clusters movement in the Bay, hosted its first Annual General Meeting at Spar Eastern Cape yesterday.

This Geographic Cluster, which is one of ten operating under the banner of the Nelson Mandela Bay Chamber, has led the way in promoting collaboration and action to enable the experimentation and development of solutions to improve the ease of doing business.  They became the first to become a formal business association – namely the Perseverance Business Association, and at the end of last year they won the Chamber’s Cluster of the Year Award.

During his presentation, Perseverance Business Association chairperson, Siyolo Dick, highlighted their origins, emphasising how a fire incident at a local substation underscored the necessity for businesses in the area to collaborate and tackle common issues as a unified voice.

The Association was formalised after it was established as a geographic cluster of the Nelson Mandela Bay Business Chamber towards the end of 2021. The Chamber currently has 10 geographic clusters in place which are supported by an over-arching Mega Cluster.

The Perseverance Cluster has grown to encompass 21 out of 46 businesses in the area as contributing members who are working together to sustain their businesses and employment in the surrounding communities, including longer term plans to elevate  the status of Perseverance as a recognised eco-industrial precent.

Perseverance is a strong economic hub that is strategically located in terms of proximity and access to other key industrial areas in the Bay, including the Coega IDZ, and to transport and logistics linkages. The area was established in the early 1970s and businesses in the area have a collective annual turnover of R16 billion, and employ over 10 000 employees. A diverse range of businesses operate in the area from automotive components manufacturing, food and beverage distribution, engineering, construction and transport and logistics.

Dick said that businesses in the area decided to formalise their collaboration in order to effect positive change as a collective. “It is apt to refer to Perseverance as the trailblazer for the concept of geographic business clusters in the Metro, not only because we were the first but because we were literally born out of fire. The fire at a nearby substation caused severe disruptions to business and manufacturing operations in this area for days, weeks and even months afterwards,” said Dick.

“It was also the catalyst for realising that we needed to work together as business in our area to address shared problems – and that if we collaborated, we could amplify our impact as a united voice.”

Key challenges identified by the cluster include electricity outages, water supply issues, illegal dumping, road maintenance, and safety concerns. In response, the cluster has undertaken various initiatives, such as repairing potholes, securing the electrical substation, clearing illegal dumping sites, and improving water infrastructure.

“Due to many of our businesses being members of the Chamber, we approached them to take on the geographic cluster concept, thereby plugging this into their networks and task teams.  This has resulted in the formalisation and strengthening of our cluster into something bigger  which is now on a journey to realise a united vision for a better Perseverance,” he said.

As part of accessing provincial and national government support to upgrade infrastructure within the area, the Cluster has hosted engagements and site tours with the Department of Trade, Industry and Competition, Eastern Cape Development Corporation, AIDC-EC and the Municipality. These engagements have laid the groundwork for potential support in declaring the area as an eco-industrial park, opening avenues for infrastructure development and integration into the national industrial system. “I believe we are contributing to creating hope for business and citizens, that the potential of the Bay can be realised if we all act and move together in a positive direction.”

The association also adopted its five year business plan which will guide its next steps and the feasibility of what it aims to achieve in its projected plans. Part of this includes the appointment of a project manager who will lead the activation of its plans.

Dick said: “We’re all here taking action because we believe that the Metro is a Bay of Opportunity, and we know that the only way to move forward is to take action ourselves, rather than sitting around and complaining.”

The Perseverance Cluster’s journey exemplifies the power of collective action and underscores the potential for grassroots initiatives to drive positive change within communities and industries. The Nelson Mandela Bay Business Chamber has geographic clusters located in the following areas of the metro: Baakens Valley, Beachfront, Deal Party, Fairview, Kariega, Neave/Korsten, North End, Perseverance, Struandale and Walmer.

The Nelson Mandela Bay Business Chamber continues to make headway in mobilising businesses in the metro around areas of common interest with the establishment of a new geographic cluster in Walmer, bringing the total number of clusters under its banner to 10.

The establishment of the new cluster adds to a long list of already operational clusters across the Metro namely Baakens Valley, Beachfront, Deal Party, Fairview, Kariega, Neave/Korsten, North End, Perseverance and Struandale.

An interim executive committee consisting of Cameron Harvey from Elvee’s Properties as Chairperson, Claudia Daniels (Airports Company SA), John Parry (Caltex Walmer); Julie Mundell (Gutsche Investments); Simon le Gras (Simon Says), Leonard Michau (Gutsche Investments), Paola Horak (Chamber Cluster Board Lead), Denise van Huyssteen (Chamber) and Ashwin Daya (Chamber) was appointed to begin the work of formalising the cluster.

Chamber chief executive Denise van Huyssteen says it is encouraging seeing the growing number of local businesses who are embracing the Chamber’s action-orientated and activist stance, volunteering time and resources to implement solutions as a collective to address challenges impacting the ease of doing business within their geographical locations.

“The cluster concept is a key platform to enable businesses to collaborate and address shared challenges in their areas of operation, and to work with the relevant stakeholders to find implementable solutions. As businesses, operating in a fast changing and very unpredictable environment, we need to all put our intellectual and other resources together to ensure our collective sustainability. Our efforts must be focused on doing all we can to protect investment and jobs, and being proactive to ensure that we have an enabling environment in place to achieve this,” says Van Huyssteen.

She further elaborates that what makes businesses in the Metro unique is “our willingness to collaborate and our focus on taking action”. “I am especially impressed with the mindset of local business leaders who understand that in this environment of extreme challenges, a team orientated approach works best. The focus is firmly being placed on being inclusive and injecting energy into the common issues which unite us.”

The Chamber now has a How to Establish a Geographic Cluster Guide in place based on lessons learnt thus far from the clusters. “This demonstrates commitment to sharing best practices and promoting a standardised approach to collaborative business solutions, while at the same time also facilitating agility, speed and innovation.”

“As a business community we have hope in the future – we know that this is the Bay of Opportunity. It starts with all of us believing in the potential and taking action to drive things forward in the right direction,” she says.

Newly appointed Chairperson Harvey says the coming together of businesses from the Walmer area underscores the importance of leveraging their relations to address issues as a collective as opposed to working in silos.

“We’re happy that businesses have come as a collective to drive meaningful change in the area for the benefit of both residents and the business community. As we begin immersing ourselves in the formalisation of the cluster, we hope that more businesses will see the need for participation so we can have a stronger voice as a unit,” says Harvey.