Capital Equipment News December 2018

previously disadvantaged economies through economic emancipation,” adds Van der Westhuizen. “We are aggressive in our approach and the Sicediwe deal is a true indicator of how committed we are to building local capacity.” Van der Westhuizen reasons that Glencore’s success depends on how fast it capacitates emerging businesses in the local community. “It took us about five years to identify local businesses and today we have numerous service providers from the area,” he says. “We acknowledge Regoapele Capital for its commitment to opportunity- based development for SMMEs. Its service is purely out of passion to build local capacity and empowering local businesses.” Maphala Mosomane, provincial manager for Limpopo and Mpumalanga at Masisizane Fund, says if finance houses are serious about helping entrepreneurs finding their feet in the business world, it will take more than just relying on balance sheets to qualify them. “We are open to financing small businesses despite their limited operating history, as long as they can prove that they have solid contracts in place,” says Mosomane. Mkhabela, who previously worked for a large retailer in the Lydenburg area, is grateful to the various players who have each played a big role in helping her business with access to a life-changing contract and the financing she needed to purchase the necessary equipment to execute the job. “I commend the various parties for the roles they played in this initiative. Capacitating small businesses will not only boost their growth prospects, but also the economy at large,” says Mkhabela. In conclusion, Moshori says without greater focus on small businesses and specifically emerging black business, the country's tax base will continue to shrink, and that will have a negative impact on the entire economy. b

Karen van der Walt, sales representative at Komatsu South Africa (left), and Filippo Bevilacqua, MD of Riviera Hire (right), with Mary Mkabela (centre) during the handover ceremony.

Blueprint for SMME development Commenting on the lack of financing for SMMEs, Moshori concurs that in most cases small businesses are denied access to funding due to their limited operating history and low gross margins. However, he is of the view that limited history can be overcome if corporates are willing to share the risk. “With Glencore we structured finance terms that mitigated the risk for financiers. This helped overcome the barrier of historic challenges Sicediwe had. The partnership is based on both the financier and the corporate creating an enabling platform,” says Moshori. Van der Westhuizen says this model can act as a blueprint for small contractor development. The same view is shared by Moshori, who says the same model can be applied in various other sectors, such as manufacturing, banking

and retail, among others. “We have also previously assisted entrepreneurs purchase businesses like fuel stations and other businesses outside the scope of supply chain based funding,” says Moshori. Van der Westhuizen commends the concerted efforts of all the various parties that came together to make the Sicediwe venture a success. He says the initiative is a winning formula for levelling the playing field for SMMEs in order to allow real economic capacitation. “As part of our CSI responsibility, Glencore is committed to capacitating young, vibrant business leaders that can take the economy forward,” says Van der Westhuizen. In 2011, Glencore took a decision to make real change in communities it operates in line with its corporate strategy. “It is our desire to uplift

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