We received
(and accepted) the invitation from Nontobeko Vilakati for the 2019 MasisizaneFund Annual Client Market Day (#MasisizaneCMD19). The Masisizane Fund is “a
non-profit funding entity established by Old Mutual in consultation with the
National Treasury of South Africa following the closure of Old Mutual’s
Unclaimed Share Schemes Trust”. It provides crucial support to SMMEs in the agribusiness,
manufacturing and franchising sectors.
I arrived
at 107 Rivonia Road,
and was shown where the event was taking place: the Old Mutual Retail Space.
People milled around and I wandered to the showcased entrepreneur stands.
The first
was from the franchise sector. Masisizane had put up 50% of the capital
required to acquire and operate the Caltex service station in 2018. At the far
end was a co-funded 100% black-owned and operated legal business, and CTU Manufacturing Primary Co-operative. This co-op manufactures hospital
linen and apparel/attire and uniforms. Another Masisizane client offers voice
analysis technology (see www.lexforensica.co.za), but it was Bamboo Innovations
Africa (BIA), obviously an agribusiness, that caught my attention and I
wandered closer.
BIA was
begun in 2012 by Peloyotlhe Gabaraane, initially to manage projects aimed at
growing and processing bamboo. For reasons including funding which did not
arrive, Gabaraane switched to the fresh produce sector. While Gabaraane is
engaged in a discussion with two others, I talk to Clement Mawele (Masisizane
Fund) about the Masisizane funding model. Although, like banks, Masisizane
takes into account things like assets and turnover, it is more interested in
the business plan, the suppliers, market and partners. It was through its
provincial offices that Gabaraane approached the Fund.
The
opportunity arises to speak to Gabaraane, and excusing myself I step forward
and greet him. He explains why he left bamboo after he had picked up an
interest in cash crops. He accessed CASP funds offered by the Department of
Agriculture which enabled him to become visible, he says. It was the loan from
the Masisizane Fund though which enabled him to acquire and construct the
closed-circuit hydroponic system in 2018 in the Klupmuts farming area in the Western Cape.
BIA has 2
hectares under shade tunnels, and since it began operations in September 2018,
has sold more than 400 000 heads of lettuce. He speaks of
challenges posed by pests and diseases, and how he uses integrated pest
management (including biocontrol) to manage these. Among his customers are
Shoprite, Spar, Pick n Pay. A packhouse is planned in the future as doors are
opening for the business. But proceedings have begun, we must leave it there
and I make my way to a chair.
We hear from
personnel like Zizipho Nyanga (CEO) and Tabby Tsengiwe how access to funding and
markets are the problems for entrepreneurs, and how Masisizane has funded 400
enterprises (29% in agriculture).
A panel
discussion takes place, with four clients of the Masisizane Fund answering and
discussing questions put to them, and then fielding questions from the floor.
What is Gabaraane
favourite South African brand? The South African flag, he says. There is a South Africa
out there that is “real”, he says; that is not trying to hide anything. We
should stand behind it. He is very positive of the area and people where he
farms, and says the most unlikely characters greet him.
How has
Masisizane Fund helped him? He speaks of how Black farmers struggle to become
visible; how many opportunities lie just out of reach. He needed infrastructure
to grow lettuce, to switch to a better way of farming. Hydroponics is the ideal
for him: it is environmentally-friendly; saves water; because the crop isn’t
grown in soil it is easier to prepare for market. The assistance provided him
means he can compete on a global level now. It is “a complete transformation!”
He
describes further the expertise that he has picked up – being able to identify pests
and diseases, recognising what nutrients are lacking in the crop and how to
address this. Previously he had to depend on another’s expertise. It is “priceless”
what he has gained.
His
encouragement to budding entrepreneurs is that opportunity will come from
someone, somewhere. Diligence right from the beginning is important. The
diligence begins with the forms you have to fill in when applying for loans. He
speaks about how his lead began with a phone number on the Department of
Agriculture website; how after his first unsuccessful interview for CASP
funding he refined his business plan and how he applied again because the
vetting staff “hadn’t heard him”.
You don’t
need “fancy words” to get there. You need vision. And to ASK.
The CTU
Manufacturing Primary Co-operative was asked “why the co-operative model?” Her
answer was another takeaway. Co-ops teach responsibility and self-reliance. People
are partners, not employees. There is accountability on a daily basis. At the
end of the day each person knows what their contribution has been because there
are agreed measurables to be complied with.
The keynote
speaker, Andile Khumalo, referred to the observation that there are more people
in the welfare system than there are in employment. South Africa is a rich country
filled with poor people – 55% of the population lives on less than R1 000 a
month.
Tambo and
Mandela met the challenges of their time. (1)The challenge of today is income
inequality. (2) Entrepreneurship is the answer. (3) Creating
economic opportunities in townships and in the rural areas – where people live –
is where entrepreneurs should focus. Khumalo tells us that Ga-Rankuwa,
an area some 40 kilometres north of Pretoria,
is the most expensive area in the country to live in – because of the proportion
of income that must be spent on travelling to the urban areas.
After a short
address by Iain Williamson, Chief Operating Officer. He cuts the Masisizane Fund's birthday cake (it's the 12th anniversary of its founding) and we break for a light lunch.
