Page 9 - KZN Business Sense 8.3 - Ebook

Back Row, L-R: Vivienne McMenamin; Graham O’Connor; Gavin Hudson; Sihle Zikalala, KZN Premier and KZN Lindiwe Rakharebe, CEO Durban ICC; Lt Gen. Nhlanhla Mkhwanazi (SAPS
Middle Row: Cllr Wilson Ntshangase; Cllr Philani Mavundla; Stavros Nicolaou; Vivian Reddy; Growth Coalition Co-Chair Commissioner) and Wiseman Mkhize (eThekwini Municipality)
Front Row: Ravigasen Pillay; Mr Sihle Zikalala; Moses Tembe; Julia Taylor.
REBUILDING THE KZN ECONOMY

he annual KZN Top a province is unprecedented. He informal traders affected by the equipment; and business infrastructure (roads, bridges,
Executive Breakfast took reported that: recent floods. development services which water supply, electricity, rail,
Tplace on 12 May 2022 at ■ The Department of Trade, include costs for preparations and commercial buildings).
the Durban ICC. The breakfast is During the second week of April Industry and Competition for certification and pre/initial The Fund is from R1 million
an initiative of the KZN Growth 2022, KwaZulu-Natal sustained (the dtic) Infrastructure assessment costs. as per the minimum funding
Coalition, which is partnership devastating floods caused by Support Grant which aims to ■ The Industrial Development amount and is capped at
between the KZN provincial inclement weather. To date, it is provide 50% cost-sharing grant Corporation’s Flood Relief R60 million per applicant
government and the private estimated that over 445 people funding to SMMEs and large Fund will assist companies targeting companies within
business sector. Co-chaired by have died, with 48 people still businesses affected by the affected by the floods through IDC mandate. Companies
KZN Premier Sihle Zikalala unaccounted for. No less than floods for the reconstruction financing businesses that outside IDC mandate such
and executive Moses Tembe, its 7 639 people were affected, about of physical and bulk are not covered by insurance as traders, retail, logistics,
6 847 were left homeless and 43
primary function is to provide a were reported injured. infrastructure inside the or funding insurance shortfall. transportation, infrastructure
top level platform for collaboration premises. Those companies that are and construction will be
between business and government Greater eThekwini has been ■ The dtic Working Capital fully insured may also be considered on a case by case
in order to drive investment and most impacted by this inclement Grant which aims to provide funded through Bridging basis with the funds limited
growth in the province. weather and the floods have 30% cost-sharing grant Facility. The funds will be to R10 million per strategic
regressed the provincial economy funding to SMMEs and used to finance working
Due to the economic and social large manufacturing businesses capital shortfalls, buildings implementing partner (SIP)
impacts of the Covid-19 pandemic, further after the devastating affected by the floods. The and/or building improvement and R1.5 million per business.
the July 2021 civil unrest and most looting and Covid-19. The support includes working and fittings for the affected ■ Small Enterprise Finance
recently, the catastrophic floods estimated economic impact of the capital shortfalls (excluding premises. This will be done Agency Flood Relief which
in April, much of the Coalition’s floods is around R20 billion which salaries) as a result of supply through debt, bridging finance is aimed at providing financial
current focus is on rebuilding has affected both economic and chain disruptions, which and term-loans. assistance to formal small
investor and business confidence social infrastructure. could result in delayed receipt ■ The Flood Recovery Support enterprises affected by the
in the province. The emphasis is A survey by the Department of of raw materials and Grant. Targeting businesses floods in KZN and EC during
therefore on mapping a strategic Trade Industry and Competition subsequent cancellation of for inventory and based on the floods. It seeks to help
plan of action that will enable (the dtic) shows that at least 826 sales orders. invoices provide this support restore businesses,
the restoration of the businesses companies were affected and ■ The Manufacturing will be limited to 30 % of communities and livelihoods.
and business activity that were the cost of the damages to the Competitiveness Enhancement qualifying costs with a This is a full grant and is non-
negatively affected in the course of companies is estimated at R6.4 Programme (MCEP) Industrial capped amount. repayable providing amounts
the past two years. billion. The majority of businesses Loan Component seeks ■ The Infrastructure Fund
affected were in agriculture (22%) between R10 000 and R2 million
The breakfast event was to assist SMMEs and large provides grant funding per applicant targeting non-
sponsored by Investec and was followed by manufacturing (12%). manufacturing companies to businesses affected by the insured and underinsured small
well supported, with more than Funding for Recovery affected by the floods through floods for the reconstruction businesses.
250 business executives and financing businesses that of infrastructure. The scope
government officials in attendance. In order to fund the recovery of are not covered by insurance of the existing Infrastructure The fund will support small
They included KZN Growth business the following funds are or funding the insurance Programme which covers enterprises requiring funding
Coalition co-chairs Premier available: cover shortfall. The fund offers companies affected by the for working capital such as
Zikalala and Moses Tembe; Ravi ■ The KZN Department of an interest-free loan to affected unrest will be broadened to (equipment (including stock),
Pillay, KZN MEC for Economic Economic Development, businesses for the replacement include support to companies furniture and fittings, tools and
Development, Tourism and Tourism and Environmental of stock, machinery and affected by the floods. machinery provided that this
Environmental Affairs; Julia Affairs will reprioritise equipment, refurbishment ■ Government has also set remains below the threshold).
Taylor, Regional Head: Investec R67.5 million towards SMME/ of machinery and equipment, aside R500m for the Flood Premier Zikalala paid tribute to
Specialist Bank; Stavros Nicolaou, Cooperatives Relief which fittings, shelving and/or storage Relief Fund to help restore the business community of our
Group Senior Executive, Strategic has been approved by facilities, commercial vehicles businesses, communities province and country for lending
Trade Aspen Pharma Group; Provincial Treasury. The Relief and material handling systems. and livelihoods. This a helping hand in the relief efforts
and Nigel Ward, President of the Fund will prioritise township It also covers information and covers the recovery process and initiatives aimed at rebuilding
Durban Chamber of Commerce and rural businesses and communications technology and the rebuilding of affected KwaZulu-Natal. He said, “We
and Industry. look to you captains of industry
In his address, Moses Tembe to ensure that we weather this
said that despite the devastation storm and emerge out of it wiser,
left by the July 2021 unrest, stronger, and more resilient.”
the province is still seen as a Stavros Nicolaou, who delivered
good place for investment, with the vote of thanks, called the
projects worth billions of rand KZN Growth Coalition a great
in the pipeline for KZN. He initiative and applauded both
added that the opportunities for government and business for
the province “far outweighed continuing the partnership.
the challenges” and that the
government was committed to “This coalition sends a strong
working with business to rebuild message that problems can only
the KZN economy. be transcended if people work
together – and walking
Premier Sihle Zikalala said that the talk will make a difference,”
what we are currently facing as he said. 

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