Six SMMEs from the Amathole District have secured close to R3 million in funding from the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism.
MEC for the Economic Development, Environmental Affairs and Tourism, Mlungisi Mvoko, visited Butterworth to confirm that the funds were being used for the intended purposes, verify the employment impact, and officially present the grants to recipients. Five grants, totaling R2,5 million, were made to the co-operatives in Amathole District.
The Dutywa co-operatives are the Ntinga Nje Ngokhozi Primary Cooperative (R500 000), which manufactures fencing material, and Vukani Tyekelebende Agricultural Co-operative (R500 000), which produces crops and vegetables. The Butterworth recipients are Mabamo Bakery (R500 000) and clothing manufacturer, Kheswa Cekwana Co-operative (R483 000).
The fifth co-operative to be awarded funding is the youth-owned clothing manufacturer, Zimasa Youth Agricultural Primary Co-operative (R450 000) in Nqamakhwe.
The co-operatives used the funds to purchase materials to construct a building, do renovations, buy vehicles, equipment and related items and offset operational costs and raw materials.
The Great7 Guest House in Butterworth received the Local and Regional Economic (LRED) Fund grant of R410 000. The funding was used to acquire various assets, including furniture.
“The funding intervention, as is the case with all the businesses which we funded throughout the province, is part of the government-community compact that includes ECDC. It aims at creating employment, retaining existing jobs and ensuring business sustainability as we work hand-in-hand to develop the economy. Our people should expect to witness our own making a difference in other people’s lives,” he explains.
The Amathole presentation brings to 23 the number of recipients who have received more than R36 million in funding from the LRED, Imvaba Cooperative and Provincial Economic Stimulus Funds.
Currently, the application window for the LRED fund is closed.
However, a new window for applications is planned.
The department will publish these details in due course.
The department also intends to develop an online application process for the funds, for greater efficiency and faster turnaround times.
Talking about how small entities can access funding, Mvoko explained that it is evident from the latest relief funding applications that some businesses that applied did not qualify because forms were incomplete and mandatory documents had not been submitted. In some cases, businesses did not comply with industry standards.
However, Mvoko said the department was now working closely with the municipalities to share information regarding the funding instruments, requirements and qualifying criteria to assist business that experienced this type of challenge.
“In addition, the department, through the Eastern Cape Development Corporation (ECDC), will provide R1,5 million to help SMMEs with certification and accreditation,” he said.
The ECDC manages the Imvaba Co-operative Fund, while the department manages the LRED and Provincial Economic Stimulus Funds.
ISSUED DEPARTMENT OF ECONOMIC DEVELOPMENT, ENVIRONMENTAL AFFAIRS AND TOURISM
