1. 2 Limpopo Economic Development Enterprise EASTEN CAPE DEVELOPMENT CORPORATION – 02 MAY 2011.

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Limpopo Economic Development Enterprise

EASTEN CAPE DEVELOPMENT CORPORATION – 02 MAY 2011

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Presentation Outline

Purpose of presentationBackgroundVisionMissionProducts & Services Targeted SectorsPricing andRequirements.

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Purpose of the presentation

To highlight the developmental products and services offered by LimDev to SMME’s and Co-operatives within Limpopo Province.

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Background Mandate of LimDev in terms of the Act

(Northern Transvaal Corporations Act, Act No.5 of 1994, Section 4)EncouragePlan FinanceCoordinatePromote Carry out development of the Province and its

people

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Our Vision

To be the pre-eminent catalyst and partner in economic growth and empowerment in the Limpopo Province.

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MissionTO Establish and advance a sustainable SMME

sector through the facilitation and provision of business and investment opportunities

Main activitiesSMME funding and contribution to economic

developmentProviding guarantees and sureties. (subject to

Minister’s approval)

Mission of LimDev

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PRODUCTS & SERVICES

SMME Development FinanceProject Development and

Property ManagementMining Development Housing Development finance Passenger Transport.

Project Development and Property Management Division

LimDev partners with SMME’s on property development.

andIt also provide rental space for SMME

development(Large and Small Industries and Shopping Complexes)

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Housing Development Finance

Risima Housing Finance is a 100% subsidiary of LimDev.

It finance Rural and Urban development

AndIt contribute towards SMME development

by procuring construction services from building contractors.

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Mining Development

Corridor Mining Resources is a 100% subsidiary of LimDev.

AndIt goes into join-ventures with BBBEE in

mining projects

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Passenger Transport

Great North Transport in a 100% subsidiary of LimDev and it provide public transport.

andIt contribute to SMME development

through procurement services.

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SMME Development Finance

LimDev provide developmental finance to SMMe’s,

andProviding guarantees and sureties.

(subject to Minister’s approval)

SMME Development Finance is the core

business of LimDev

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Targeted Sectors PrioritizedManufacturingMiningTourismAgriculture ( agro-processing )ConstructionRetailingSpecialized Business ServicesPersonal ServicesTransport.

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Types of Financial Products

The following are types of financial products available for the SMMEs in the Limpopo:Working Capital FinanceCapital Expenditure FinanceStart up Capital FinanceEquity Capital FinanceBridging Finance

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Working Capital Finance

Purpose

Finance working capital requirements

Stock and/or working materials

Administrative/Operating Expenses

Term: 12 -36 months

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Capital Expenditure Finance

Purpose

Finance capital expenditure requirements (yellow assets)Equipments and machinery

Term: 36- 60 months

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Start-up Capital Finance

Purpose

Loan Finance of newly discovered business ideas and opportunities

TermMax. of 36-84 months

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Equity Capital Finance (BEE financing)

Purpose

Finance purchase of equity/stake in existing businesses

TermBuild-in exit strategy from beginning. Max. period :

36-84 months

Conditions: acquire board seats in the project

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Bridging/Procurement Finance Product

Purpose Cover for immediate demand in goods/services Finance for procurement orders and contracts from

Government at National, provincial and local level

Catering for increased demand during holidays

and/or pick periods.

Term: 3 months or period of the contract

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CHARGES

Prime-linked interest rate.

Thus interest rate is controlled by the risk factor (Min Prime less 3% and Max Prime plus 2%)

Admin fee of 1% limited to R2 500.00 (NCR) OR R3 000.00 VAT inclusive depending on the amount .

Application fee of R500.00 OR R5 000.00 based on the amount requested.

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RequirementsThe business must be registered either as:

Sole ProprietorshipPartnershipClose CorporationPrivate CompanyCo-operatives

Viable/Bankable Business PlanSecurities

Deed of Grant / PTO / Title DeedInvestments; Insurance Policy (with surrender value)Surety ship

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Requirements (Cont)

Original SA identity document Proof of marital status Proof of residence valuation fee (over R50 000.00)

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Requirements (Cont)

Copy of contract / appointment letter Business ProfileFinancial statements projectionsCash flow projectionsWork scheduleBank statements (Six month period)Tax clearance certificateCk documents or memorandum and articles of

association 10% own contribution on ordinary business.

Summary of SMME’s financed over five year period(2006-2010)

NO Period No of SMME’s Finance Value of amount Financed

1 2005/06 262 R56.6 million

2 2006/07 456 R105.8 million

3 2007/08 432 R61.1 million

4 2008/09 88 R19.1 million

5 2009/10 75 R16.5 million

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RISIMA HOUSING FINANCE

NO Period No of Houses Value of amount Financed

1 2005/06 269 R40.4 million

2 2006/07 420 R68.0 million

3 2007/08 357

4 2008/09 R32.9 million

5 2009/10 204 R56.1 million

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Great North Transport (2006-2010)

NO Period No of Passenger transported per annum

1 2005/06 36.0 million

2 2006/07 36.5 million

3 2007/08 36.0 million

4 2008/09 42.2 million

5 2009/10 36.0 million

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Contact Details

Lebowakgomo: 015-633 4700Ritavi : 015-303 1731Giyani : 015-812 3111Thohoyandou : 015-962 4900Polokwane : 015-295 5120

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THANK YOU