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2. 2 Limpopo Economic Development Enterprise EASTEN CAPE DEVELOPMENT CORPORATION – 02 MAY 2011

3. 3 Presentation Outline Purpose of presentation Background Vision Mission Products & Services Targeted Sectors Pricing and Requirements.

4. 4 Purpose of the presentation To highlight the developmental products and services offered by LimDev to SMME’s and Co-operatives within Limpopo Province.

5. 5 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

6. 6 Our Vision To be the pre-eminent catalyst and partner in economic growth and empowerment in the Limpopo Province.

7. 7 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) Mission of LimDev

8. 8 PRODUCTS & SERVICES SMME Development Finance Project Development and Property Management Mining Development Housing Development finance Passenger Transport.

9. 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

10. 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

11. Mining Development Corridor Mining Resources is a 100% subsidiary of LimDev. And It goes into join-ventures with BBBEE in mining projects 11

12. 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

13. 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

14. 14 Targeted Sectors Prioritized Manufacturing Mining Tourism Agriculture ( agro-processing ) Construction Retailing Specialized Business Services Personal Services Transport.

15. 15 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

16. 16 Working Capital Finance Purpose  Finance working capital requirements Stock and/or working materials Administrative/Operating Expenses Term: 12 -36 months

17. 17 Capital Expenditure Finance Purpose  Finance capital expenditure requirements (yellow assets) Equipments and machinery Term: 36- 60 months

18. 18 Start-up Capital Finance Purpose Loan Finance of newly discovered business ideas and opportunities Term  Max. of 36-84 months

19. 19 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

20. 20 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

21. 21 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.

22. 22 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

23. 23 Requirements (Cont) Original SA identity document Proof of marital status Proof of residence valuation fee (over R50 000.00)

24. 24 Requirements (Cont) Copy of 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.

25. Summary of SMME’s financed over five year period(2006-2010) NOPeriodNo of SMME’s FinanceValue of amount Financed 12005/06262R56.6 million 22006/07456R105.8 million 32007/08432R61.1 million 42008/0988R19.1 million 52009/1075R16.5 million 25

26. RISIMA HOUSING FINANCE NOPeriodNo of HousesValue of amount Financed 12005/06269R40.4 million 22006/07420R68.0 million 32007/08357 42008/09R32.9 million 52009/10204R56.1 million 26

27. Great North Transport (2006-2010) NOPeriodNo of Passenger transported per annum 12005/0636.0 million 22006/0736.5 million 32007/0836.0 million 42008/0942.2 million 52009/1036.0 million 27

28. 28 Contact Details Lebowakgomo: 015-633 4700 Ritavi : 015-303 1731 Giyani : 015-812 3111 Thohoyandou : 015-962 4900 Polokwane : 015-295 5120

29. 29 THANK YOU