Eastern Cape Development Corporation continues to make strides in the province
The Eastern Cape Development Corporation (ECDC) says a total of 190 Eastern Cape small businesses received R41.8m in loan advances which facilitated the creation of 359 jobs in the 2018/19 financial year.
Announcing ECDC’s 2018/19 annual results on the back of an unqualified audit opinion in 2018/19, CEO Ndzondelelo Dlulane said the average loan repayment rate was 80% in 2018/19.
A total of 359 jobs were facilitated through the loan funding, which includes 186 youth jobs. ECDC activities resulted in the facilitation of 3,969 jobs in 2018/19.
A total of R23.4m was advanced to businesses in the services sector, R17.2m to those in construction, R1m to manufacturing and R92,000 went to businesses in the agro-processing sector.
Dlulane said of the R41.8m, R19.4m went to businesses in the Amathole district municipality and Buffalo City Metro. A total of R8.1m went to those in Alfred Nzo, R6.4m to businesses in OR Tambo, R4.7m to those in Chris Hani, R2.5m in Nelson Mandela Bay Metropolitan Municipality, R611,000 to Sarah Baartman and R50,200 to those in Joe Gqabi.
“Furthermore, ECDC is equally pleased with the development impact it has achieved in the past five-year strategy cycle. In the past six years, ECDC interventions resulted in the facilitation of 24,379 jobs.
“In the past six years, ECDC also advanced a loan funding total of R620.1m to 1,402 Eastern Cape entrepreneurs,” he said.
Dlulane says from a finance perspective, ECDC’s financial position remains strong in that its total group assets exceed total group liabilities by R1.7bn. The driver for this positive book value is mainly an increase in the value of investment properties.
“The operating profit before fair value gains and investment revenue improved from an operating loss of R62m in the 2018 financial year to a profit of R16m during the year under review.
“This is attributed to both the cost-cutting measures that have yielded a decrease of R35m in operating expenses as a result of the implementation of the financial recovery plan in October 2017, and the increased revenue received of R50m for SMME financing,” says Dlulane.
A total of 2,208 SMME’s received enterprise development services in 2018/19. During the period under review, 228 enterprises received compulsory direct business development services in 2018/19. Of this number, 99 (44%) were women-owned businesses and 88 (39%) were youth-owned businesses. In the past six years a total of 1,775 SMMEs received non-financial support services.
“In 2018/19, ECDC placed special emphasis on the pursuit of trade, investment and innovation initiatives which should improve the overall global competitiveness of Eastern Cape entrepreneurs.
“ECDC facilitated R292m in local and foreign direct investment into the province. A total of 19 development projects were facilitated while 172 local entrepreneurs received integrated export support. ECDC participated in 19 trade, investment missions and expos.
“A further 203 people received critical skills training. A total of 1,295 jobs were facilitated through trade, investment and innovation activities. In the past six years ECDC facilitated a total of R4.5bn in local and foreign direct investment,” Dlulane said.
“Moving forward, ECDC will consolidate and improve mandate delivery to ensure that economic development is real through the provision of real finance, real resources and real investment.”