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NAMAC Trust

NAMAC Trust. Presentation to The Portfolio Committee on Trade & Industry Cape Town. 22 August 2002. NAMAC Trust. Who are we? A Trust established in July 1997 Department of Trade and Industry ( the dti ) is the custodian of the Trust Core partners are CSIR, Ntsika and NPI

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NAMAC Trust

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  1. NAMAC Trust Presentation to The Portfolio Committee on Trade & Industry Cape Town 22 August 2002

  2. NAMAC Trust • Who are we? • A Trust established in July 1997 • Department of Trade and Industry (the dti) is the custodian of the Trust • Core partners are CSIR, Ntsika and NPI • Funding model is 30%the dti, 30% local and provincial government, 30% donor and 10% own revenue generation • Core Programmes are • Manufacturing Advisory Centres (MAC) • Business Referral & Information Network (BRAIN) • Franchise Advice and Information Network (FRAIN) • Form part of the dti Group of Institutions • Form part of the COTII Sub Committee on Small Business and others • Leading Implementation Agency in the Sector

  3. Direction / High Level Policy Macro decisions Create right political climate Parliament Strategy / Plan / Sector Policy Resources = $ Political Support High level management the dti Implementation / Co-ordination / Partner Management Set up Section 21’s / Appoint delivery staff Support to Centers and BRAIN Affilliates Implement Systems / Guide / Co-ordinate Financial control / Information hub / Monitoring & Evaluation Technical Training and Co-ordination / Custodian Delivery Contact with SMMEs Operational delivery Control by local and national stakeholders Co-ordinate Provincial & Local SMME Services NAMAC / Intermediary National Co-coordinators Jobs saved Jobs created Increase in productivity Improved Yield Management Access to relevant business information Section 21’s/ Regional Centers & Satellites & BRAIN Affilliates SMME Service Delivery Vertical and Horizontal Integration Model

  4. The dti group

  5. NAMAC Trust : Our Mandate Our understanding of our current mandate from the dti is : “to carry out local institutional building to facilitate business development services for SMMEs throughout South Africa”

  6. How does NAMAC Trust contribute Vision Statement Since NAMAC is the leading implementing and delivery agency in the SMME Support Industry, we will contribute significantly to the continuous economic growth and sustainable development of South Africa by improving the competitiveness and growth of SMMEs as a vehicle for poverty alleviation, wealth and job creation This means Through appropriate SMME support structures we will supply high quality advisory and information services to new and existing SMMEs in line with best practices globally.

  7. FINANCIAL ASSISTANCE CLIENT BANK IDC BUSINESS DEVELOPMENT ASSISTANCE EXPORT RFI KHULA TAC COORDINATE NAMAC SUPPORTING MEDIUM & SMALL Coordinators NTSIKA SMME NAMAC/ BRAIN/ FRAIN Coordinators CATALYTIC SERVICES >350 SMME SUPPORT PROGRAMMES LIP IDZ COORDINATE BRAIN SUPPORTING ALL SMMEs INSTITUTIONAL SERVICES >36 INSTITUTIONS SUPPORTING SMMEs ESC LED TSP LBSC MAC GOVERNMENT SUPPORTING SMME’s UNIV. TECH BIG BUS. CSIR TISA NPI TELKOM SABS DEPT.OF WELFARE MIN. EN. PROV. GOVT. LOCAL GOVT. DONORS DTI DACST DOL SMME Support Role Players in SA

  8. I D C Big Business M A C Medium-Sized Enterprises Khula BRAIN & FRAIN Small-SizedEnterprises Ntsika Very SmallEnterprises MicroEnterprises Informal Micro Lenders x x x x x x x x x x x x x Survivalist Key Targeted Support Services Focus Financial Support Services Non Financial Services

  9. NAMAC Trust : Strategic Objectives • (A) Institutional Building of a National Network of • MAC Centres • One-stop-shops • Affiliate Centres

  10. NAMAC Trust : Strategic Objectives - continued - • (B) Empowering of the above Centres • Supply and implementation of : • Worldclass diagnostic tools • International Benchmarking • Information Resources • Operational and Management Systems • Corporate Governance Models • Opportunities to access Partners, Programmes, Centres and the dti Incentives • Network Opportunities • ISO 9001 in own Centres • M&E and MIRS Systems • Professional Consulting and Advisory Services

  11. NAMAC Trust : Primary Contribution to the objectives of the dti • Economic Growth • We assist in growing SMMEs to enter the mainstream economy, and to become sustainable exporters. • Competitiveness • By using world-class tools and techniques, we assist SMMEs to become globally competitive. • Job Creation • We assist in saving existing jobs and in creating new jobs. • Equity • In all of the above, equity imbalances are addressed as a core priority

  12. NAMAC Trust : Overview of Products and Services • Implementation of systems, skills, techniques and know-how to serve SMMEs effectively in all areas in RSA • Implementation of targeted assistance to sectors and regions, e.g. manufacturing, Franchise, etc.

  13. NAMAC Trust : Targets to date and Actual Achievements

  14. NAMAC Trust : Targets to date and Actual Achievements - continued -

  15. BRAIN Affilliates in South Africa Libraries (3) MAC Offices (15) NICRO Offices (14) Chambers of Commerce (8) Prov Departments (12) Community Centres (17) Metro/Mun Sections (7) Financial Orgs (31) Independent Consult (81) Technikons/Universities (16) NTSIKA LBSC’s (23) Bus Skills Develop (44) Bus Service Centres (91) Total BRAIN Affiliates (362) Northern province Mpumalanga Gauteng North West Free State KZN Northern Cape Eastern Cape Western Cape End July 2002

  16. Expansion of MAC and BRAIN (National Network) • Additional MACs planned : • End September 2002 • 1 Section 21 Company (FSMAC) • 1 Operational MAC Centre (Bloemfontein) • Targeted BRAIN affiliates by March 2002 = 250 • Actual BRAIN Afilliates by July 2002 = 362

  17. MAC Impact Indicators Summary of achievements for the MAC Programme since 1997 (as at July 2002) • SMMEs Contacted 2 926 • SMMEs Worked with 1 535 • Projects Awarded 2 257 • Assessments Carried Out 1 531 • HDI SMMEs worked with 61% • Female Owned SMMEs worked with 31% • Value of Projects Awarded R25 678 029 • Customer Satisfaction Surveys 1 077 • Success Stories 222 • Jobs Sustained – Working with 32 647 • Jobs Facilitated – Working with 1 283

  18. Businesses Serviced (MAC) (End July 2002)

  19. BRAIN Impact Indicators (End July 2002) BRAIN Output Service Delivery Trends Year Completed Target Completed Programme (2002 – 2003) Year to date to date • Affiliate local businessservice centres 100 72 362 • Train BRAIN Delivery Staffin centres 100 121 391 • Aftercare at Affiliates (%) 100% 64% new

  20. BRAIN Impact Indicators Website Statistics for July 2002 • Hits on Website 181 444 • Individual Visits 16 766 • Average Visits per day 540 • Average Pages Downloaded per day 1 745 • Newsletter Subscriptions (to date) 661

  21. Clients Serviced (BRAIN) (End July 2002)

  22. FRAIN • FRAIN was launched in January 2002 • Attended world Franchising Expo week(SA, May 06 to 11) • FRAIN website has 636 franchise opportunities listed • FRAIN will present first Franchise Statistics at the Biz Week as part of WWSD on 30 August 2002 www.frain.org.za

  23. FRAIN Impact Indicators Website Statistics for July 2002 • Hits on Website 60 497 • Individual Visits 5 285 • Average Visits per day 170 • Average Pages Downloaded per day 720

  24. Other Projects • Intensive Hand Holding • One Stop Shops • Reduction in Risk Profile Model • Directorship and Corporate Governance Model • Service Level Upliftment of Service Centres

  25. Project/ Partnership dti CSIR NPI Ntsika TWIB Khula SABS IDC Priv Sect SPF    TIDP  IHHP      OSS        DCGM  RRPM    Franchise       IOSLLC     MAC          BRAIN          Privateer Prg      Current Joint Initiatives & Interaction with Sister Institutions

  26. dti Mega Project NAMAC Trust (%) Centres (%) * MAC * OSS * Affil Enterprise Growth 20 25 Regional competitiveness 30 25 Sector Competitiveness 30 25 Regulatory Environment (DCGM) - - Trade 5 10 Empowerment 15 15 Questions & Answers to the Minister of the dti COTII Leadership Conference on 12 – 13 August

  27. Success Stories Questions & Answers to the Minister of the dti COTII Leadership Conference on 12 – 13 August - continue - Question 1 Are we aligning ourselves to have a client / stakeholder focus? Answer • Yes 100% • Pro-active diagnostic • Outreach driven • Solution Provision • Independent Customer Satisfaction Surveys

  28. Questions & Answers to the Minister of the dti COTII Leadership Conference on 12 – 13 August - continue - Question 2 Where do we fit in the Enterprise Life Cycle? Answer • Currently 85% focused unto those SMMEs that employ less than 50 employees and focus onto : • Start and Operate 5% BRAIN • Compete and Grow 70% MAC • Export and Import 25% MAC • Predominately in manufacturing metrapols • 60% HDI • 30% WOWM

  29. Questions & Answers to the Minister of the dti COTII Leadership Conference on 12 – 13 August - continue - Question 3 Are we contributing to transforming the Economy? Answer • Regionally yes • Jobs saved • Jobs created • Access to Export Markets • Increased Sales • Reduction in Scrap rates, etc. Question 4 Are we decreasing the transaction time? Answer Have not yet addressed this!

  30. Questions & Answers to the Minister of the dti COTII Leadership Conference on 12 – 13 August - continue - Question 5 How have you improved access for your customers? Answer • We are piloting : • 3 One Stop Shops • 362 BRAIN Outlets • Doubled number of MAC to 16 Operating Centres • 8 COTII member joint projects • 188 SMMEs Gain access to the dti incentives • Networking sessions with local service providers

  31. Questions & Answers to the Minister of the dti COTII Leadership Conference on 12 – 13 August - continue - Question 6 How do we address the problem that only a small number of enterprises find value in the dti’s COTII services? Answer • We are actively involved in creating a national network of : • Low volume high impact outlets (targeted assistance) (16 MACs) • High volume low impact outlets (362 affiliates) • However the challenge is to grow capacity exponentially to meet the demand side pressures as current stats show that collectively we are only serving significantly less than 1%.

  32. Questions & Answers to the Minister of the dti COTII Leadership Conference on 12 – 13 August - continue - In Summary : NAMAC would welcome a positive challenge to integrate and co-ordinate a strategy for the improvement of service delivery through its national network and other compatible delivery mechanisms to meet this challenge in conjunction with its COTII colleagues, private sector and other stakeholders.

  33. Our Passion and Commitment “Making a difference in an SMME’s Life Today”

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