1. The Portfolio Committee on Trade & Industry
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. National Co-coordinators Section 21’s/ Regional Centers & Satellites
Vertical and Horizontal Integration Model
Parliament
Direction / High Level Policy
Macro decisions
Create right political climate
the dti
Strategy / Plan / Sector Policy
Resources = $
Political Support
High level management
NAMAC / Intermediary
National Co-coordinators
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
Section 21’s/ Regional Centers & Satellites
& BRAIN Affilliates
Delivery
Contact with SMMEs
Operational delivery
Control by local and national stakeholders
Co-ordinate Provincial & Local SMME Services
SMME Service Delivery
Jobs saved
Jobs created
Increase in productivity
Improved Yield Management
Access to relevant business information

4. The dti group

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

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

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. Economic Growth Competitiveness Job Creation Equity
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 Targets Actuals
9 Section 21 Companies
(One per province) 9
11 MAC Centres – Operational 10
7 MAC Satellites 6
350 BRAIN Affiliate Centres
362
6 One-Stop-Shops 3
Develop Systems and Tools
Ongoing
315 SMMEs access dti incentives
188

14. NAMAC Trust : Targets to date and Actual Achievements
- continued -
Number of Staff Target
(Current compliment of 178)
Actuals
To date (31/07/02)
Race Target : 60% Black
78%
Gender Target : 60% Female
53%
Training Target : 60 Staff members 62

16. BRAIN Affilliates in South Africa
End July 2002
Mpumalanga
Gauteng
North West
Free State
KZN
Northern Cape
Western Cape
Eastern Cape
Northern province
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)

17. 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

18. Summary of achievements for the MAC Programme since 1997
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 R
Customer Satisfaction Surveys 1 077
Success Stories 222
Jobs Sustained – Working with
Jobs Facilitated – Working with 1 283

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

20. BRAIN Output Service Delivery Trends
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 business service centres
Train BRAIN Delivery Staff in centres
Aftercare at Affiliates (%) 100% 64% new

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

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

23. www.frain.org.za 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

24. Website Statistics for July 2002
FRAIN Impact Indicators
Website Statistics for July 2002
Hits on Website
Individual Visits
Average Visits per day 170
Average Pages Downloaded per day 720

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

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

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

28. 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
Success Stories

29. 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

30. 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!

31. 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

32. 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%.

33. 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.

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