Capital Equipment News December 2018

CONTACTOR DEVELOPMENT

Sicediwe recently took delivery of its first fleet of yellow metal equipment to execute its three-year contract at Glencore Lydenburg Smelter.

Blueprint for SMME development

A collaborative initiative between several role players – a mine, an enterprise supplier development specialist, equipment suppliers and a financier – has afforded a start-up contractor the much-needed access to market, as well as the necessary funding to purchase its first fleet of equipment. The model – which saw the contractor use its three-year contract as collateral to secure financing to purchase capital goods worth R8,5-million – can serve as a blueprint for SMME development across an array of other sectors, writes Munesu Shoko.

I n recent years, lack of access to enterprise supplier development specialist, says the funding drawback can’t be resolved without dealing with the issue of access to markets first. “Unfortunately, many funding has largely been regarded as a major slippery slope for upcoming contractors. However, Otukile Moshori, MD of of Regoapele Capital, a leading

corporates do not create feasible access to markets for emerging SMMEs. This exacerbates the lack of financing because any form of funding is based on the ability to repay,” says Moshori. Regoapele Capital is an experienced company in this area. The firm focuses on opportunity-based development for upcoming businesses. This entails funding, financial

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