DEPARTMENT OF SMALL BUSINESS DEVELOPMENT (DSBD) DSBD 2019/20 DATE: 10 JULY 2019 - ANNUAL PERFORMANCE PLAN
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DEPARTMENT OF SMALL BUSINESS
DEVELOPMENT (DSBD)
DSBD 2019/20
ANNUAL PERFORMANCE PLAN
DATE: 10 JULY 2019
1
OUTLINE
1. PART A: STRATEGIC OVERVIEW
a) STRATEGIC FRAMEWORK
b) ORGANISATIONAL ENVIRONMENT
c) REVISIONS TO LEGISLATIVE AND POLICY INITIATIVES
d) OVERVIEW OF 2019/20 BUDGET AND MTEF ESTIMATES
2. PART B: PROGRAMME PLANS
a) ADMINISTRATION
b) SECTOR POLICY AND RESEARCH
c) INTEGRATED COOPERATIVES DEVELOPMENT
d) ENTERPRISE DEVELOPMENT AND ENTREPRENEURSHIP
3. PART C: DEPARTMENTAL ENTITIES
a) SMALL ENTERPRISE DEVELOPMENT AGENCY (SEDA)
b) SMALL ENTERPRISE FINANCE AGENCY (SEFA)
2
PART A: STRATEGIC OVERVIEW
3STRATEGIC FRAMEWORK
4STRATEGIC FRAMEWORK
AIM AND PURPOSE
To support the radical transformation of the economy through the promotion and
development of sustainable and competitive entrepreneurs, small businesses
and co-operatives, that contribute to job creation and economic growth.
MANDATE
To lead and coordinate an integrated approach to the promotion and
development of entrepreneurship, small businesses and co-operatives, and
ensure an enabling legislative and policy environment to support their growth
and sustainability.
VISION
A radically transformed economy through integrated and effective enterprise
development and entrepreneurship promotion.
MISSION
The coordination, integration and mobilisation of efforts and resources
towards the creation of an enabling environment for the growth and
sustainability of small businesses and co-operatives.
5STRATEGIC FRAMEWORK
STRATEGIC GOALS STRATEGIC OBJECTIVES
1. Policy and planning 1.1. Reduced regulatory burdens and a conducive legislative and policy environment for
coherence in the sector, that
promotes an enabling SMMEs and co-operatives.
ecosystem for SMMEs and
co-operatives.
1.2. Provide credible information on the status of the Cooperatives, Village and Township
economies.
2. Equitable access to 2.1 Scaled-Up and coordinated support for SMMEs, Cooperatives, Village and Township
responsive and targeted
products and services that economies.
enable the growth and
development of SMMEs and
co-operatives. 2.2. Expand access to financial SMMEs through partnerships and innovative service offerings.
3. Sound governance and the 3.1. Compliance and good governance ensured.
optimal utilisation of
available resources.
3.2. Efficient, integrated and streamlined business processes and systems.
4. An enhanced contribution 4.3. Informed and empowered communities and a responsive department.
to socio-economic
development outcomes by
the sector.
5. A professional and 5.1. Coordinated development of the skills pool across the sector.
capacitated SBD Sector.
5.2. Strengthened human resource capability and a high performing organisation.
6ORGANISATIONAL VALUES
INNOVATION INTEGRITY VALUES
PROFESSIONALISM CUSTOMER CENTRIC COMMITMENT
• Living this value • Living this value • Living this value • Living this value • Living this value
means that we will means that we will means that we will means that we will means that we will
seek to: seek to: seek to: seek to: seek to:
• Display a • Consistently • Serve with utmost • Place customer • Do what is
commitment to honour our respect, service needed to get the
being “radical” in commitments; competence and excellence at the work done;
what we do; • Uphold ethical, professional centre of • Be selfless,
• Foster innovative honest behaviour; mannerism; everything we do; resolute,
ideas and • Ensure open and • Display • Create a purposeful and
solutions in order transparent punctuality, nurturing steadfast;
to deliver communication; reliability, environment by • Be committed to
exceptional and dependability and partnering with efforts of job
results; and • Behave with a commitment to our clients and creation,
• Continuously integrity in all our meet deadlines; employees, and alleviating poverty
seek new and actions, always and in the way in and reducing
better ways to acting in the best • Cooperate with all which we care inequality; and
serve our clients. interest of the role players. and support • Display a
organisation. them; solution-driven
• Always be attitude, and
available and commitment to
accessible in serve.
providing public
services to our
society; and
• Understand
customer needs
and respond
timeously,
efficiently and
effectively to
customer queries
and requests.
7ORGANISATIONAL ENVIRONMENT
8ORGANISATIONAL ENVIRONMENT
The 2016/2017 Organisational structure and capacity requirements of the Department
was found to be inadequate to deliver on the mandate during the revision of the
Departmental Strategic Plan for the fiscal years (2016/17 – 2020/21). Towards end of
2017, the department triggered a review process of the organisational structure which
was internally approved in November 2018 however placed on hold pending the
National Macro Organisation of the State (NMOS).
In order to effectively deliver on the new prioritise as state transition into the 6th
Administration, the operating model and organisational structure of the Department will
require refinement. The latter process is aimed at streamlining process and strengthen
support in the delivery of services and in particular closing gaps in critical areas such
as Development Finance and Statistical Analysis in parallel. Furthermore focus will be
also be at re skilling staff in other important roles such Monitoring and Evaluation
amongst others. For financial year 2019/20, the work of the Department is organised
according to the following programme as per the next slide
9ORGANISATIONAL ENVIRONMENT
PROGRAMME NO. PROGRAMME NAME SUB-PROGRAMMES
Programme 1 ADMINISTRATION 1) Ministry
2) Departmental Management (Office of the DG)
3) Corporate Services
4) Financial Management
5) Communications and Marketing
Programme 2 SECTOR POLICY AND 1) Research
RESEARCH 2) Policy and Legislation (including IGR and Coordination)
3) International Relations and Trade Promotion
4) Monitoring and Evaluation
Programme 3 INTEGRATED CO-OPERATIVES 1) Co-operatives Development
DEVELOPMENT 2) Co-operatives Programme Design and Support
3) Supplier Development and Market Access Support
Programme 4 ENTERPRISE DEVELOPMENT 1) Enterprise and Supplier Development
AND ENTREPRENEURSHIP 2) SMME Programme Design and Support
3) SMME Competitiveness
4) Entrepreneurship
10ORGANISATIONAL ENVIRONMENT
AS INDICATED IN PREPARATION OF THE 2019/20 APP CONSIDERATION WAS ALSO
MADE IN VIEW OF THE OPERATING MODEL MOVING FORWARD. THE PROPOSED
MODEL IS CENTRED AROUND THE FOLLOWING:
RE-ORGANISATION OF THE DEPARTMENT TO RESPOND APPROPRIATELY TO THE
NEEDS OF THE SMMES AND COOPS TAKING INTO COGNISANCE THE RESOURCES
AVAILABLE ( BUDGET AND PERSONS);
TAKEN A THEMATIC APPROACH TO SERVICE DELIVERY AND THIS POSTURE WILL NOT
IN ANY WAY AFFECT WORK THAT IS UNDERWAY I.E LEGISLATIONS AND SO FORTH.
11DSBD OPERATIONAL MODEL
PRODUCT AND MARKETS
# Market Value Chains
# Government Procurement
# Technical Support (Sector-Specific)
# Business Matching
# Trade Agreements & Large
Transactions
# Export Markets
INFORMATION
# Regulatory and Support (sefa&
SEDA)
# Business Communications
# Seamless Access and Support (One-
Stop-SMME Platform)
ENTERPRISE DEVELOPMENT
FINANCE # SMMEs and Cooperatives Register
# SMME Master Plan
# Financial Sustainability # SMME Business Index
# Township Economies
# Risk Cover and Business Rescue
# Village/ Rural Economies
# Model Funding Agreement
# Cooperatives Support
# SMME Contracting models
# SMMEs Support
# SMME Payment
# Business Facilitation (Incubation) &
# Funding Facilities (sefa) Informal Business
12REVISIONS TO LEGISLATIVE AND POLICY INITATIVES
13REVISIONS TO LEGISLATIVE AND OTHER MANDATES
1. The Department is in the process of amending of the National Small Business Act (No. 102 of
1996) and anticipate submitting a bill to the Executive Authority during the course of 2019 / 20
financial year. To date amendments to Schedule 1 of the National Small Enterprises Act has
been gazetted.
2. The DSBD is reviewing the Integrated Strategy on the Promotion of Entrepreneurship and
Small Enterprises, in order for the strategy to remain relevant and to accommodate recent
economic activities and business cycles.
3. The DSBD will evaluate the Co-operatives Strategy (2021-2022) and improve on the
implementation plan and will inform the development of an integrated approach to co-
operatives development.
4. Red tape reduction strategy to be finalised by the third quarter of this year. We will continue
with the rollout of red tape reduction programme and this year we are focusing on the Northern
Cape targeting the following municipalities: John Taolo Gaetsewe District Municipality, Z F
Mgcawu District Municipality, Kheis Local Municipality, Emthanjeni Local Municipality
Siyancuma Local Municipality, Siyathemba Local Municipality, Ubuntu Local Municipality, Kai
Garib Local Municipality, Ga Segonyana Local Municipality, Joe Morolong Local Municipality
Richtersveld Local Municipality, Karoo Hoogland Local Municipality, Khai Ma Local
Municipality, NamaKhoi Local Municipality, Kamiesberg Local Municipality and Phokwane
Local Municipality
14OVERVIEW OF BUDGET AND
MTEF ESTIMATES
15OVERVIEW OF 2019/20 BUDGET AND MTEF ESTIMATES
MAIN
AUDITED APPROPRIATI
OUTCOME ON MTEF
TOTAL
OVER
2017/18 2018/19 2019/20 2020/21 2021/22 MTEF
Programme R’000 R’000 R’000 R’000 R’000 R’000
Administration
116,999 127,121 124,388 131,496 139,630 395,514
Sector Policy and
Research
16,748 22,447 35,615 39,416 42,310 117,341
Integrated Co-
operatives
Development 99,204 115,017 127,628 135,080 142,269 404,977
Enterprise
Development
and
Entrepreneurship 1,226,533 1,223,868 2,280 921 2,407 271 2,539 124 7,227,316
TOTAL 1,459,484 1,488,453 2,568,552 2,713,263 2,863,333 8,145,148
16ECONOMIC CLASSIFICATION OF 2019/20 BUDGET AND MTEF
ESTIMATES
AUDITED MAIN
OUTCOME APPROPRIATION MTEF
Economic 2017/18 2018/19 2019/20 2020/21 2021/22 TOTAL
classification R’000 R’000 R’000 R’000 R’000 R’000
Compensation of
employees 129,006 140,632 151,808 163,297 173,911 489,016
Goods and
services 78,100 81,752 86,123 90,913 95,949 272,985
Payment for
capital assets 6,458 4,002 4,274 4,362 4,567 13,203
Transfers &
subsidies 1,245,919 1,262,067 2,326,347 2,454,691 2,588,906 7,369,944
TOTAL 1,459,484 1,488,453 2,568,552 2.713,263 2,863,333 8,145,148
172019/20 ECONOMIC CLASSIFICATION
2019/20 % Proportion
ECONOMIC CLASSIFICATION
R'000
COMPENSATION OF EMPLOYEES 151 808 5.9%
GOODS AND SERVICES 86 123 3.4%
TRANSFERS AND SUBSIDIES 2 326 347 90.6%
PAYMENTS FOR CAPITAL ASSETS 4 274 0.2%
TOTAL 100.0%
2 568 552
18TRANSFERS
Transfers and subsidies account for R2.326 billion (90.6%) of the allocated budget
Sefa is allocated R1 billion (43%)
Seda receives R867.763 million (37.3%)whilst
DSBD remains with R458.584 million (19.9%) of the allocated transfers and
subsidies as illustrated below:
Proportion to
Area of allocation 2019/20 2020/21 2021/22 TOTAL MTEF total
Transfers
SEFA 1 000 000 1 055 000 1 113 025 3 168 025 43%
SEDA 867 763 908 960 958 160 2 734 883 37.1%
DSBD 458 584 490 731 517 721 1 467 036 19.9%
Total Transfers 2 326 347 2 454 691 2 588 906 7 369 944 100%
19TRANSFERS: DETAILS
TOTAL 2019
Details 2019/20 2020/21 2021/22 MTEF
Small Business and Innovation Fund sefa 1 000 000 1 055 000 1 113 025 3 168 025
Total to sefa 1 000 000 1 055 000 1 113 025 3 168 025
Small Enterprise Development
Agency
Seda 607 274 641 465 675 953 1 924 692
Small Enterprise Development
Agency: Technology programme
Seda 152 281 160 261 169 075 481 617
Small Enterprise Development
Agency: Capacity Building Seda 15 406 16 253 17 147 48 806
Programme
SEDA Gazelles Programmes Seda 35 000 30 000 31 650 96 650
SEDA Enterprise Incubation
Programme (EIP)
Seda 57 802 60 981 64 335 183 118
Total to SEDA 867 763 908 960 958 160 2 715 474
BBSDP DSBD 286 126 301 863 318 465 906 454
Co-Operatives Incentive Scheme DSBD 87 984 92 823 97 928 278 735
National Informal Business Upliftment
Scheme (NIBUS)
DSBD 73 914 84 904 89 574 248 392
Craft Customised sector Programme DSBD 10 560 11 141 11 754 33 455
TOTAL DSBD 458 584 490 731 517 721 1 467 036
TOTAL 2 326 347 2 454 691 2 588 906 7 369 944
20PART B: PROGRAMME PLANS
21PROGRAMME 1: ADMINISTRATION
22PURPOSE OF THE PROGRAMME
The Programme is responsible for the provision of strategic leadership, management and
support services to the Minister, Deputy Minister, Director General, and the Department. This is
to ensure the successful implementation of the Department’s mandate through sustainable and
integrated support services that are customer driven.
Sub-Programmes:
1. Ministry
2. Departmental Management (Office of the DG)
3. Corporate Services
4. Financial Management
5. Communication and Marketing
23PROGRAMME 1: OBJECTIVES AND MTEF TARGETS
ESTIMATED
MEDIUM TERM TARGETS
STRATEGIC PERFORMANCE
OBJECTIVE 2020/21
2018/19 2019/20 2021/22
(New Cycle)
3. Sound governance and the optimal utilisation of available resources
3.1: Compliance and Unqualified audit outcome for Unqualified audit Unqualified audit outcome Unqualified audit outcome
good governance both financial and non- outcome for both for both financial and non- for both financial and non-
ensured. financial performance data financial and non- financial performance data financial performance data
for 2017/18. financial performance for 2019/20. for 2020/21.
data for 2018/19.PROGRAMME 1: OBJECTIVES AND MTEF TARGETS
ESTIMATED
MEDIUM TERM TARGETS
STRATEGIC PERFORMANCE
OBJECTIVE 2020/21
2018/19 2019/20 2021/22
(New Cycle)
4. An enhanced contribution to socio-economic development outcomes by the sector
4.4: Informed and 25 facilitated interactions that 30 awareness 40 awareness campaigns 50 awareness campaigns
empowered deliver meaningful campaigns with with communities and with communities and
communities and a engagements with communities and stakeholders conducted. stakeholders conducted.
responsive department. communities and the public. stakeholders
conducted.
5. A professional and capacitated SBD Sector
5.2 Strengthened 50% of women SMS 50% of women SMS 50% of women SMS 50% of women SMS
human resource representation. representation. representation. representation.
capability and a high 2% of PWD employed. ≥ 2% of PWD ≥ 2% of PWD employed. ≥ 2% of PWD employed.
performing organisation. employed.PROGRAMME 2: SECTOR POLICY
AND RESEARCH
26PURPOSE, GOALS AND OBJECTIVES
The Programme is responsible to create an enabling environment for the development and
growth of sustainable small businesses and co-operatives through commissioning research; the
development and review of policy and legislation; the coordination and promotion of sound
intergovernmental relationships; promoting the sector interests in the regional and global arena;
and effective monitoring and evaluation of programmes to ensure the desired impact is achieved
in contributing toward the creation of employment and economic growth.
Sub-Programmes:
1. Research
2. Policy and Legislation (which includes IGR and Coordination)
3. International Relations and Trade Promotion
4. Monitoring and Evaluation
27PROGRAMME 2: OBJECTIVES AND MTEF TARGETS
ESTIMATED PERFORMANCE MEDIUM TERM TARGETS
STRATEGIC OBJECTIVE 2020/21
2018/19 2019/20 2021/22
(New Cycle)
1: Policy and planning coherence in the sector, that promotes an enabling ecosystem for SMMEs and co-operatives
1.1: Reduced regulatory Twelve (12) municipalities Red-Tape Reduction Ease of doing business Ease of doing business
burdens and a conducive assisted to roll out SMMEs and Awareness Programme Awareness Programme rolled Awareness Programme
legislative and policy co-operatives Red-Tape rolled out in 16 out in 20 municipalities. rolled out in 25
environment for SMMEs and Reduction Programme. municipalities. municipalities.
co-operatives. Amendment of the National Draft National Small Prepare and table National Prepare and table
Small Business Bill through Enterprise Bill submitted to Small Enterprise bill in National Small
legislative process. the Minister for Parliament. Enterprise bill in
consideration. Parliament.
N/A SMME and Co-operatives Position paper on the Position paper on the
ombudsman Established. establishment of the SMME establishment of the
Ombudsman finalised SMME Ombudsman
finalised
1.2 Provide credible N/A SMME Index developed. Popularize SMMEs Index. SMMEs Index Report
information on the status of published.
the Cooperatives, Village N/A Database of SMMEs and Annual Status Quo Report on N/A
and Township economies. Co-operatives per sector, SMMEs produced.
location, size, turnover,
number of employees
developed.
N/A Reviewed Cooperatives Standardization of the Co- Monitor the
registration process operatives registration all implementation of the
provinces revised registration
process and application
by organ of the State
N/A Informal sector registers Maintenance and updating of Maintenance and
per trade category, the register. updating of the register.
location and ownership.
28PROGRAMME 2: OBJECTIVES AND MTEF TARGETS
ESTIMATED PERFORMANCE MEDIUM TERM TARGETS
STRATEGIC OBJECTIVE 2020/21
2018/19 2019/20 2021/22
(New Cycle)
2: Equitable access to responsive and targeted products and services that enable the growth and development of SMMEs and co-
operatives
2.1. Scaled-Up and N/A Business Rescue Strategy Business Rescue Strategy Business Rescue
coordinated support for Implemented (funding, Implemented. Strategy Implemented.
SMMEs, Cooperatives, technical support).
Village and Township N/A Support a number of Develop tracking tool to Monitor government
economies. enterprises to access measure government spend on spending on SMMEs
designated products and SMMEs and Cooperatives and Cooperatives
services
29PROGRAMME 3: INTEGRATED CO-
OPERATIVES DEVELOPMENT
30PURPOSE OF THE PROGRAMME
The programme is responsible to create an enabling environment that facilitates the
establishment, growth and development of co-operatives through the development and review of
legislation and policy, the design, piloting and monitoring of the impact of support services and
instruments; the championing of functional partnerships and cooperation agreements; and the
advocacy and thought leadership in advancing economic growth, job creation and social
cohesion.
Sub-Programmes:
1. Co-operatives Development
2. Co-operatives Programme Design and Support
3. Supplier Development and Market Access Support
31PROGRAMME 3: OBJECTIVES AND MTEF TARGETS
ESTIMATED
MEDIUM TERM TARGETS
STRATEGIC PERFORMANCE
OBJECTIVE 2020/21
2018/19 2019/20 2021/22
(New Cycle)
2: Equitable access to responsive and targeted products and services that enable the growth and development of SMMEs and co-
operatives
2.1 Scaled-Up and N/A Four (4) Product markets for Four Product markets for SMMEs Four Product markets for
coordinated support for SMMEs and Cooperatives and Cooperatives developed. SMMEs and Cooperatives
SMMEs, Cooperatives, developed. developed.
Village and Township N/A Quality products and services Implement sector-specific capacity Implement sector-specific
economies made by SMMEs and building interventions. capacity building
Cooperatives Produced. interventions.
N/A Master Plan on SMMEs and Ensure the sub-contracting Ensure the sub-contracting
Cooperatives Contracting conditionalities on contracts with conditionalities on
developed. largest acquisition budget benefit contracts with largest
SMMEs and Co-operatives. acquisition budget benefit
SMMEs and Co-operatives.
N/A Partnership agreements with Value of Contracts benefiting Implement, Monitor and
Development Finance SMMEs and Co-operatives through report on transactions
Institutions signed. conditionalities
N/A SMMEs and Co-operatives SMMEs and Co-operatives Master SMMEs and Co-operatives
Master Plan Developed. Plan Implemented. Integrated Master Plan
Implemented.
N/A Partnership accord with Rollout of the partnership. Rollout of the partnership
industry bodies secured. and reporting.
N/A Reports on the roll-out of the Reports on the roll-out of the credit Reports on the roll-out of
credit guarantee schemes guarantee schemes. the credit guarantee
developed. schemes.
2.2. Expand access to 122 co-operatives Co-operatives supported to the Co-operatives supported to the value N/A
financial SMMEs supported financially value of the R67.9 million. of the R72.8 million
through partnerships through the CIS.
and innovative service
offerings
32PROGRAMME 4:
ENTERPRISE DEVELOPMENT AND
ENTREPRENEURSHIP
33PURPOSE OF THE PROGRAMME
The Programme is responsible to create an enabling environment for the development and
growth of sustainable small businesses through the development and review of legislation and
policy; the design, piloting and monitoring of the impact of support services and instruments; the
promotion of local economic development and entrepreneurship; championing functional
partnerships; and advocacy and thought leadership in advancing economic growth and job
creation.
Sub-Programmes:
1. Enterprise and Suppler Development
2. SMME Programme Design and Support
3. SMME Competitiveness
4. Entrepreneurship
34PROGRAMME 4: THE BUDGET AND MTEF TARGETS
ESTIMATED PERFORMANCE MEDIUM TERM TARGETS
STRATEGIC OBJECTIVE 2020/21
2018/19 2019/20 2021/22
(New Cycle)
2: Equitable access to responsive and targeted products and services that enable the growth and development of SMMEs and co-operatives
2.1 Expand access to N/A SMMEs and Co-operatives SMMEs and Co-operatives SMMEs and Co-
financial SMMEs through supported through blended finance supported through blended operatives supported
partnerships and innovative to the value of R100 Million. finance to the value of R110 through blended finance to
service offerings. Million. the value of R416, 4
Million.
677 SMMEs supported through the SMMEs supported through the SMMEs supported through N/A
BBSDP. BBSDP to the value of R206.1 the BBSDP to the value of
million. R211.9 million.
2.2 Scaled-Up and N/A Four (4) Incubation centers/digital Six Incubation centers/digital Eight Incubation
coordinated support for hubs established. hubs in districts and centers/digital hubs in
SMMEs, Cooperatives, metropoles. districts and metropoles.
Village and Township
economies N/A Defined support programmes for Rollout of the programme. Rollout of the programme.
informal sector trading category and
location, e.g. Buyer group initiation
and support.
N/A One -Stop- SMME Platform/ Centre Maintenance of the platform. Maintenance of the
established. platform.
N/A SMME Payment tracing platform Rollout of the platform. Monitoring and reporting
developed. on the performance of the
platform.
N/A Funding model developed. Integrated funding model Integrated funding model
implemented. implemented
N/A Digital Hub Framework and Model Rollout of the hubs. Rollout of additional hubs
developed.
35PART C: DEPARTMENTAL ENTITIES
36PUBLIC ENTITIES REPORTING TO THE MINISTER
Two public entities report to the Department through Governance arrangements
Transfer to Public Entity
Name of Public Enabling Monitoring and (R’000.00)
Mandate and Purpose
Entity Legislation Evaluation
2018/19 2019/20
Small Enterprise National Small SEDA provides non- Performance R840 089 R867 763
Development Enterprise Act financial business evaluation is
Agency (SEDA) 1996, (No.102 of development and support undertaken on a
1996), as services for small quarterly basis.
amended. enterprises, in partnership
with other role players in
the small business
development
environment.
The mission of SEDA is to
develop, support and
promote small enterprises
to ensure their growth and
sustainability.
Small Enterprise Section 3 (d) of the SEFA supports the Performance N/A R1 000 000
Finance Agency Industrial development of evaluation is
(SEFA) Development sustainable SMMEs undertaken on a
Corporation Act, through the provision of quarterly basis.
No. 22 of 1940 finance.
(Industrial
Development The mission of SEFA is to
Corporation (IDC) provide access to finance
Act). to Survivalist, Micro, Small
and Medium businesses
throughout South Africa.
37SEDA ALLOCATED BUDGET FOR 2019/20
Allocation to: Budget for 2018/19 Budget allocated for 2019/20 Increase or (decrease)
(R’million) (R’million) in budget
Seda - baseline R580,241 R607,274 4.66%
STP - baseline R144,622 R152,281 5.3%
STP – Capacity Building Programme (CFEs) R30,489 R15,406 (50.5%)
STP – Enterprise Incubation Programme (EIP) R54,737 R57,802 5.6%
Seda – Gazelle Programme R30,000 R35,000 16.7%
Seda - IMEDP R33,500 R30,000 (10.4%)
TOTAL R873,589 R897,763 2.7%
38SEDA PROVINCIAL 2019/20 BUDGET SPLIT
Budget 2019/20 Budget 2019/20 Budget 2019/20
% of total
Enterprise Seda Tech TOTAL
Provinces budget
Development Programme (STP) PROVINCIAL
allocation
(EDD) Allocation Allocation allocation
Eastern Cape R 50,632,307 R 26,644,792 R 77,277,099 13.1%
Free State R 45,655,583 R 4,620,152 R 50,275,735 8.5%
Gauteng R 40,589,293 R 45,813,647 R 86,402,940 14.7%
Kwazulu-Natal R 69,377,782 R 19,277,294 R 88,655,076 15.1%
Limpopo R 47,398,101 R 10,550,076 R 57,948,177 9.8%
Mpumalanga R 42,371,062 R 10,113,647 R 52,484,709 8.9%
Northern Cape R 44,065,408 R 4,620,152 R 48,685,560 8.3%
North West R 44,562,296 R 3,435,076 R 47,997,372 8.2%
Western Cape R 61,570,157 R 17,018,218 R 78,588,375 13.4%
TOTAL R 446,221,991 R 142,093,054 R 588,315,045 100.0%
39SEDA’S DELIVERY NETWORK & SUPPORTED INCUBATION CENTRES
JULY 2019
Provinces Seda Branches Colocations Mobile units Incubators Total per province
Eastern Cape 5 14 0 10 29
Free State 5 9 5 3 22
Gauteng 2 5 0 16 23
Kwa Zulu Natal 6 11 0 13 30
Limpopo 5 4 3 3 15
Mpumalanga 5 20 0 6 31
Northern Cape 5 5 1 3 13
North West 5 5 0 4 14
Western Cape 14 1 0 6 21
TOTALS 52 74 09 76 198
40CO-LOCATION PER PROVINCE
EC FS GP KZN LP MP NC NW WC
Mbhashe Local Sasol Infrachem City of Alfred Duma Balfour Sishen AngloGold SAREBI
Municipality Tshwane- Municipality SOIC Thusong Khumba Iron Ashanti
Mabopane Khumba Iron Service Ore
Ore Centre Company
JGDM (Aliwal North) DESTEA City of Okhahlamba Pixley Ka AngloGold
Tshwane- Municipality Seme Local Ashanti
Olievenhoutbo Nandoni Rural Municipality
Tushiya
sch Development
JGDM (Maclear) Dihlabeng Local City of Inkosi Thaba Chweu Moretele
Namakwa
Municipality Tshwane- Langalibalele Ephraim Local Municipality
District
Mamelodi Municipality Mogale Local Municipality
Municipalit
Municipality
y
JGDM (Sterkspruit) Matjhabeng Local Endumeni Islington Lekwa
Municipality City of Municipality Makhudutham Youth Teemane
Tshwane aga Local Developemnt South 32 Local
Atteridgeville Municipality Centre
Port St Johns Municipality Mantsopa Local Umzimkhulu Utah Youth Magareng ORBIT ARI
Municipality Local Development Municipality & CFE
Municipality Centre
Engcobo local municipality The Department of City of Dr Nkosazana Marapyane
Premier - Tshwane Zuma Local Thusong
Mohokare Thusong Bronkhorstspr Municipality Service
Service Centre uit Centre
41INCUBATION FUNDING ALLOCATION PER PROVINCE
42SUPPORTED INCUBATORS PER PROVINCE
INCUBATOR SECTOR LOCATION PROVINCE AMOUNT
EASTERN CAPE
R 1 800
Chemin Chemicals Industry Port Elizabeth EC 000,00
R 1 800
Chemin Chemicals Industry East London EC 000,00
R 1 478
Furntech Furniture Manufacturing Mthatha EC 571,00
R 1 500
SCI Construction Mthatha EC 000,00
R 1 500
SCI Construction Port Elizabeth EC 000,00
R 1 500
SCI Construction East London EC 000,00
R 2 970
iHub ICT Port Elizabeth EC 000,00
R 2 200
SANAMI Agro processing Mount Ayliff EC 000,00
R 3 000
Ikhala CFE Agriculture Queenstown EC 000,00
R 1 185
Lovedale Rapid Incubator Agriculture & Agro processing Alice EC 076,00
R 3 500
Automotive Design Tooling Automotive Industry Port Elizabeth EC 000,00
R 4 211
Kaya's Cullinary Food Food Technology Port Elizabeth EC 145,00
TOTAL R 26 644 792,00
43SUPPORTED INCUBATORS PER PROVINCE
FREE STATE
SAMTI Mining & Agricultrural Tooling Bloemfontein Free State R 2 250 000,00
Motheo Rapid Incubator Mixed manufacturing Bloemfontein Free State R 1 185 076,00
Gold Fields CFE Renewable energy Welkom Free State R 1 185 076,00
TOTAL R 4 620 152,00
GAUTENG
Chemin Chemicals Industry Modderfontein Gauteng R 1 800 000,00
Egolibio Life Science Pretoria Gauteng R 3 000 000,00
Furntech Furniture Manufacturing Johannesburg Gauteng R 1 478 571,00
Lepharo Copper, Zinc & Base Metals Springs Gauteng R 2 700 000,00
AIDC Automotive Industry Rosslyn Gauteng R 3 000 000,00
SCI Construction Ekurhuleni Gauteng R 1 500 000,00
SCI Construction Mogale City Gauteng R 1 500 000,00
SCI Construction Pretoria West Gauteng R 1 500 000,00
SMTDC Small-scale manufacturing Soshanguve Gauteng R 2 700 000,00
SBTI ICT Midrand Gauteng R 4 050 000,00
GJA Jewellery manufacturing Lenasia Gauteng R 2 000 000,00
Ekurhuleni Jewellery Incubator Jewellery manufacturing Ekurhuleni Gauteng R 2 000 000,00
BICSA Food Technology Midrand Gauteng R 2 250 000,00
Tuksnovation High Tech Innovation, Engineering & ICT Tshwane Gauteng R 2 000 000,00
EWC CFERI Jewellery manufacturing Katlegong Gauteng R 1 185 076,00
SA Creative Industry Incubator Creative Industries Eersterust Gauteng R 2 500 000,00
Property Point Property services & construction Johannesburg Gauteng R 3 000 000,00
20 Media Creative Industries Johannesburg Gauteng R 3 500 000,00
AIDC Ford Automotive Industry Rosslyn Gauteng R 4 150 000,00
TOTAL R 45 813 647,00
44SUPPORTED INCUBATORS PER PROVINCE
KWA ZULU NATAL
DACT Aluminium fabrication & casting Richard's Bay KZN R 2 700 000,00
Furntech Furniture Manufacturing Durban KZN R 1 478 571,00
Furntech Furniture Manufacturing Umzimkhulu KZN R 1 478 571,00
Invotech Mixed high-tech Durban KZN R 2 700 000,00
SCI Construction Durban KZN R 1 500 000,00
SCI Construction Umzimkhulu KZN R 1 500 000,00
SCI Construction Kwa-Mashu KZN R 1 500 000,00
SmartXchange ICT Durban KZN R 2 025 000,00
SmartXchange ICT Ugu KZN R 2 025 000,00
Esayidi CFERI mixed sectors Port Shepstone KZN R 1 185 076,00
DUT CFE Mixed secors Durban KZN R 1 185 076,00
TOTAL R 19 277 294,00
45SUPPORTED INCUBATORS PER PROVINCE
LIMPOPO
BBI Bio-fuels Marble Hall Limpopo R 2 500 000,00
SLJI Jewellery manufacturing Polokwane Limpopo R 2 025 000,00
Vhembe CFERI Mixed manufacturing Thohoyandou Limpopo R 1 185 076,00
Matsila Agriculture Levubu Limpopo R 2 340 000,00
Nwanedi New Generation Agriculture Nwanedi Limpopo R 2 500 000,00
TOTAL R 10 550 076,00
MPUMALANGA
Furntech Furniture Manufacturing White River Mpumalanga R 1 478 571,00
MASDT Agriculture Nelspruit Mpumalanga R 2 700 000,00
MSI Stainless Steel Processing Middelburg Mpumalanga R 2 250 000,00
Timbali Floricultrue Nelspruit Mpumalanga R 2 500 000,00
Gert Sibande CFE Hospitality Ermelo Mpumalanga R 1 185 076,00
TOTAL R 10 113 647,00
NORTHERN CAPE
NC Diamond & Jewellery Incubator Jewellery manufacturing Kimberley NC R 2 250 000,00
Northern Cape Rural Rapid Incubator Construction De Aar NC R 1 185 076,00
VUT CFE Leather, footware, welding Upington NC R 1 185 076,00
TOTAL R 4 620 152,00
46SUPPORTED INCUBATORS PER PROVINCE
NORTH WEST
R 2 250
TPI Platinum Jewellery manufacturing Rustenburg North West 000,00
R 1 185
Orbit CFERI Automotive Industry Rustenburg North West 076,00
TOTAL R 3 435 076,00
WESTERN CAPE
R 1 478
Furntech Furniture Manufacturing Nyanga WC 571,00
R 1 478
Furntech Furniture Manufacturing Cape Town WC 571,00
R 2 376
SAREBI Renewable energy Atlantis WC 000,00
R 3 000
Savant Advanced manufacturing Cape Town WC 000,00
R 1 185
False Bay CFERI Metal fabrication and furniture Muizenberg WC 076,00
R 3 500
Incubation 4.0 ICT, Digital & Animation Cape Town WC 000,00
R 4 000
One Bio Bio technology Cape Town WC 000,00
TOTAL R 17 018 218,00
GRAND TOTAL R 142 093 054,00
INCUBATION BUDGET R 164 358 141,00
VARIANCE R 22 265 087,00
47SUMMARY OF ALLOCATIONS PER PROVINCE
IMEDP
EDD BRANCH ACCESS BRANCH OFFICE HR ALLOCATIONS
PROVINCE STP ALLOCATIONS Spending/Informa
ALLOCATIONS POINTS COSTS %
l Enterprises
Free State
45 655 583 4 620 132 2 460 047 22 2 462 064 8
Gauteng
40 589 293 45 813 643 7 149 462 23 2 945 371 5
North West
44 562 296 3 435 076 5 312 127 14 3 719 420 8
Northern Cape
44 065 048 4 620 152 2 647 771 13 3 584 564 8
Eastern Cape
5 063 307 26 644 792 4 472 415 29 3 351 265 9
Western Cape
61 570 157 17 018 218 3 156 835 21 6 385 558 12
Limpopo
47 398 101 10 550 076 4 441 680 15 4 042 704 8
Mpumalanga
42 371 062 10 113 647 3 693 923 31 2 685 393 8
KZN
69 377 782 19 277 294 7 016 958 30 4 874 783 10
Total
400 652 629 142 093 030 40 351 218 198 34 051 122 76
48SEFA: MAIN BUSINESS AND FUNDING ACTIVITIES
Products Targeted ownership Sectoral
groups involvement
• Direct Loans (asset finance, Term • SMMEs & co-operatives that • Services (including retail,
Loans, Revolving loans & Bridging are unserved and wholesale, IT and tourism,
loans, Purchase Order Product, underserved by commercial transport logistics);
Invoice Discounting Product & lenders • Manufacturing (including
Amavulandlela & Inyamazani − women, agro-processing);
Schemes for entrepreneurs with
disabilities & Military Veterans − black people, • Agriculture (specifically
respectively) − youth, land reform beneficiaries
and small-farming
• Wholesale Loans and Equity − Township-based activities).
(on-lending facilities, Funds & joint enterprises,
ventures, Micro-finance, Structured • Construction (small
− rural communities and construction contractors);
Finance Solutions)
− people with disabilities. • Mining (specifically small
• Business Support (Institutional
strengthening, technical support & miners) and
mentorship) • Green industries
• Credit Guarantees (Credit (renewable energy, waste
Indemnity guarantees & Supplier and recycling management).
guarantees)
• Rental Property
49SEFA LENDING MODEL
50SEFA’S KEY FOCUS AREAS FOR 2019/20
• Scale up the development impact amongst SMMEs and Co-operatives using
innovation and leverage while at the same time contributing to the sustainability of
funded clients. To this extent sefa will introduce a blended financing model in
partnership with government and the private sector;
• Introduce target lending programmes in economic sectors identified in the June 2019
State of Nation Address for youth owned enterprises and enterprises located in
townships and rural communities/villages;
• Scale up and deepen the post-investment support by reducing impairments,
improving collections and client sustainability;
• The repositioning of the Direct Lending program and the disposal of the Property
portfolio;
• Reduce operating costs, improve efficiencies, build skills and capabilities;
• The development of agile business and management information systems for
decision-making and improving customer interaction; and
• Deepening the collaboration with Small Enterprise Development Agency, in particular
by providing seamless online services to SMMEs and Co-operative Enterprises and
pre- and post-investment support services
51LOAN BOOK OUTCOMES
Approvals and Disbursements 2019/2020 2020/2021 2021/2022 MTEF 5 Years
Value of Approvals: small &
929 784 1 179 040 1 348 989 3 457 813 6 559 920
medium enterprises (R'000)
Value of disbursements: small &
793 930 937 121 1 021 738 2 752 789 4 818 560
medium enterprises (R'000)
Enterprise Financed and Jobs
Enterprises Financed and
2019/2020 2020/2021 2021/2022 MTEF 5 Years
Jobs Facilitated
No of SMMEs and Co-operatives
90 178 93 371 96 751 280 300 480 861
Financed
No of Jobs Facilitated (created
91 997 95 363 98 586 285 946 490 019
and sustained)
52LOAN BOOK OUTCOMES CONT..
Targeted groups
Support to Targeted Groups 2019/2020 2020/2021 2021/2022 MTEF 5 Years
Disbursements to black-owned
665 255 769 382 832 885 2 267 522 3 957 612
Enterprises (R'000)
Disbursements to women-owned
448 055 515 719 557 339 1 521 113 2 653 040
Enterprises (R'000)
Disbursements to youth-owned
239 229 282 224 307 645 829 098 1 451 181
Enterprises (R'000)
Disbursements to township-
324 254 364 523 390 591 1 079 368 1 876 094
owned Enterprises (R'000)
Disbursements to enterprises
owned by entrepreneurs with 15 949 18 815 20 510 55 274 96 745
Disability (R'000)
Disbursements to enterprises
located in rural and village 448 055 515 719 557 339 1 521 113 2 653 040
communities (R'000)
Disbursements to enterprises -
89 952 93 092 96 440 279 484 479 426
number less than R500k
53SEFA ORGANISATIONAL FOOTPRINT
54THANK YOU
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