1 / 29

Limpopo Economic Development Enterprise

Limpopo Economic Development Enterprise. EASTEN CAPE DEVELOPMENT CORPORATION – 02 MAY 2011. Presentation Outline. Purpose of presentation Background Vision Mission Products & Services Targeted Sectors Pricing and Requirements. Purpose of the presentation.

charis
Download Presentation

Limpopo Economic Development Enterprise

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Limpopo Economic Development Enterprise EASTEN CAPE DEVELOPMENT CORPORATION – 02 MAY 2011

  2. Presentation Outline • Purpose of presentation • Background • Vision • Mission • Products & Services • Targeted Sectors • Pricing and • Requirements.

  3. Purpose of the presentation • To highlight the developmental products and services offered by LimDev to SMME’s and Co-operatives within Limpopo Province.

  4. Background • Mandate of LimDev in terms of the Act (Northern Transvaal Corporations Act, Act No.5 of 1994, Section 4) • Encourage • Plan • Finance • Coordinate • Promote • Carry out development of the Province and its people

  5. Our Vision • To be the pre-eminent catalyst and partner in economic growth and empowerment in the Limpopo Province.

  6. Mission of LimDev • Mission • TO Establish and advance a sustainable SMME sector through the facilitation and provision of business and investment opportunities • Main activities • SMME funding and contribution to economic development • Providing guarantees and sureties. (subject to Minister’s approval)

  7. PRODUCTS & SERVICES • SMME Development Finance • Project Development and Property Management • Mining Development • Housing Development finance • Passenger Transport.

  8. Project Development and Property Management Division • LimDev partners with SMME’s on property development. and • It also provide rental space for SMME development(Large and Small Industries and Shopping Complexes)

  9. Housing Development Finance • Risima Housing Finance is a 100% subsidiary of LimDev. • It finance Rural and Urban development And • It contribute towards SMME development by procuring construction services from building contractors.

  10. Mining Development • Corridor Mining Resources is a 100% subsidiary of LimDev. And • It goes into join-ventures with BBBEE in mining projects

  11. Passenger Transport • Great North Transport in a 100% subsidiary of LimDev and it provide public transport. and • It contribute to SMME development through procurement services.

  12. SMME Development Finance • LimDev provide developmental finance to SMMe’s, and • Providing guarantees and sureties. (subject to Minister’s approval) SMME Development Finance is the core business of LimDev

  13. Targeted Sectors Prioritized • Manufacturing • Mining • Tourism • Agriculture ( agro-processing ) • Construction • Retailing • Specialized Business Services • Personal Services • Transport.

  14. Types of Financial Products • The following are types of financial products available for the SMMEs in the Limpopo: • Working Capital Finance • Capital Expenditure Finance • Start up Capital Finance • Equity Capital Finance • Bridging Finance

  15. Working Capital Finance • Purpose • Finance working capital requirements • Stock and/or working materials • Administrative/Operating Expenses • Term: 12 -36 months

  16. Capital Expenditure Finance • Purpose • Finance capital expenditure requirements (yellow assets) • Equipments and machinery • Term: 36- 60 months

  17. Start-up Capital Finance Purpose • Loan Finance of newly discovered business ideas and opportunities • Term • Max. of 36-84 months

  18. Equity Capital Finance (BEE financing) Purpose • Finance purchase of equity/stake in existing businesses • Term • Build-in exit strategy from beginning. Max. period : 36-84 months • Conditions: acquire board seats in the project

  19. Bridging/Procurement Finance Product • Purpose • Cover for immediate demand in goods/services • Finance for procurement orders and contracts from Government at National, provincial and local level • Catering for increased demand during holidays and/or pick periods. • Term: 3 months or period of the contract

  20. CHARGES • Prime-linked interest rate. Thus interest rate is controlled by the risk factor (Min Prime less 3% and Max Prime plus 2%) • Admin fee of 1% limited to R2 500.00 (NCR) OR R3 000.00 VAT inclusive depending on the amount . • Application fee of R500.00 OR R5 000.00 based on the amount requested.

  21. Requirements • The business must be registered either as: • Sole Proprietorship • Partnership • Close Corporation • Private Company • Co-operatives • Viable/Bankable Business Plan • Securities • Deed of Grant / PTO / Title Deed • Investments; Insurance Policy (with surrender value) • Surety ship

  22. Requirements (Cont) • Original SA identity document • Proof of marital status • Proof of residence • valuation fee (over R50 000.00)

  23. Requirements (Cont) • Copyof contract / appointment letter • Business Profile • Financial statements projections • Cash flow projections • Work schedule • Bank statements (Six month period) • Tax clearance certificate • Ck documents or memorandum and articles of association • 10% own contribution on ordinary business.

  24. Summary of SMME’s financed over five year period(2006-2010)

  25. RISIMA HOUSING FINANCE

  26. Great North Transport (2006-2010)

  27. Contact Details • Lebowakgomo: 015-633 4700 • Ritavi : 015-303 1731 • Giyani : 015-812 3111 • Thohoyandou : 015-962 4900 • Polokwane : 015-295 5120

  28. THANK YOU

More Related