SEDA ANNUAL REPORT 2018/19 · SEDA | ANNUAL REPORT 2019 5 GENERAL INFORMATION REGISTERED NAME Small Enterprise Development Agency (Seda) PHYSICAL ADDRESS The Fields, Office Block

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SEDA NATIONAL OFFICEThe Fields, Office Block A, 1066

Burnette Street, Hatfield, 0083,PretoriaPO Box 56714, Arcadia, 0007

T: +27 12 441 1000 | F: +27 12 441 2064

NATIONAL INFORMATION CENTRET: 0860 103 703 | E: [email protected]

Website EnquiriesE: [email protected]

RP176/2019ISPN: 978-0-621-47452-7

ANNUAL REPORT

2018/19

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PART A: GENERAL INFORMATION 4

General Information 5

List of Abbreviations and Acronyms 6

Foreword by the Minister of Small Business Development 10

Overview by the Chairperson 12

Report of the Accounting Officer 16

Statement of Responsibility and Confirmation of Accuracy for the Annual Report 20

Strategic Overview 21

Vision 21

Mission 21

Core Values 22

Strategic Goal and Objectives 23

Products and Services 25

Legislative and Other Mandates 26

Organisational Structure 28

Seda Executive Management Team 29

PART B: PERFORMANCE INFORMATION 30

Auditor’s Report of the Performance Information 31

Situational Analysis 32

Performance Delivery Environment 32

Organisational Delivery Environment 33

Alignment to Government Priorities 34

Performance Highlights 36

Performance Information by Programme 37

Programme 1: Enterprise Development Division (EDD) 37

Programme 2: Seda Technology Programme (STP) 41

Programme 3: Administration 42

Provincial Management Team 44

Success Stories 47

CONTENTS

Lima Trading CC t/a Algoa Cement Industries 48

Magesh Logistics (Pty) LTD 50

SoyLite (Pty) Ltd 52

Nyanya Resort (Pty) Ltd 54

Mamabheka Tyre and Fitment Centre 56

Renabo Plastic Moulders and Furniture 58

Bathlako Temo Primary Cooperative 60

StaV Trading & Projects (Pty) Ltd 62

EZY MOK General Trading 64

Boomerang Marketing Solutions CC 66

Excellere Foods 68

Amina Chem 70

SediClean Hygiene Solutions 72

PART C: GOVERNANCE 75

Board Members 76

Introduction 78

Portfolio Committees 78

Executive Authority 78

The Accounting Authority/ The Board 78

Committees 83

Human Resource and Remuneration Committee 83

Audit and Risk Committee 83

Remuneration of Board Members 84

Minimising Conflict of Interest 84

Code of Conduct 84

Health, Safety and Environmental Issues 85

Company Secretary 85

Social Responsibility 85

Risk Management 86

Compliance with laws and regulations 86

Fraud and Corruptions 86

Whistle-Blowing 86

Investigation Process 86

Board Members 87

Audit and Risk Committee 88

PART D: HUMAN RESOURCE MANAGEMENT 90

Human Resource Management 91

Introduction 92

Human Resource Report 2018/19 93

PART E: FINANCIAL INFORMATION 98

Report of the Auditor-General 99

Report on the Audit of the Annual Performance Report 100

Report on the Audit of Compliance with Legislation 102

Other Information 102

Internal Control Deficiencies 103

Annexure - Auditor General’s Responsibility of the Audit 104

Statement of Financial Performance 105

Statement of Financial Position 106

Statement of Changes in Nett Assets 107

Cash Flow Statement 108

Statement of Comparison of Budget and Actual Information 109

Notes to the Annual Financial Statements 111

ANNEXURE A: SEDA PROVINCIAL OFFICES 156

Eastern Cape 157

Free State 158

Gauteng 159

Kwazulu-Natal 160

Limpopo 161

Mpumalanga 162

Northern Cape 163

North West 164

Western Cape 165

Seda Provincial Office Contact Details 166

Notes 168

GENERAL INFORMATIONPART A

SEDA | ANNUAL REPORT 2019 5

GENERAL INFORMATION

REGISTERED NAME Small Enterprise Development Agency (Seda)

PHYSICAL ADDRESS The Fields,Office Block A,1066 Burnett Street,Hatfield,Pretoria

POSTAL ADDRESS PO Box 56714, Arcadia, 0007

TELEPHONE NUMBER(S) 0860 103 703/012 441 1000

FAX NUMBER 012 441 2064

E-MAIL ADDRESS [email protected]

WEBSITE www.seda.org.za

EXTERNAL AUDITORS Auditor-General of South Africa

BANKERS ABSA

BOARD SECRETARY Ms Charmaine Campbell

ANNUAL REPORT 2019 | SEDA6

LIST OF ABBREVIATIONS AND ACRONYMS

ACO Assesment of Company OperationsACI Algoa Cement IndustriesAGSA Auditor–General of South AfricaAPP Annual Performance PlanARC Audit and Risk CommitteeBA Business AdvisorBBBEE Broad Based Black Economic EmpowermentBCEA Basic Conditions of Employment ActBER Bureau of Economic ResearchBESD Basic Entrepreneurial Skills DevelopmentBICSA Business Information Centre of South AfricaBSI British Standards InstitutionCBD Central Business DistrictCCMA Council for Conciliation, Mediation and ArbitrationCEO Chief Executive OfficerCFO Chief Financial OfficerCIS Cooperative Incentive SchemeCOIDA Compensation for Occupational Injuries and Diseases ActCPE Critical Planning ExerciseCPPP Community Public Private PartnershipCSD Central Supplier DatabaseDSBD Department of Small Business Developmentthe dti Department of Trade and IndustryEDD Enterprise Development DivisionEDP Entrepreneurial Development PractitionerEDTEA Economic Development, Tourism and Environmental AffairsEE Emerging EntrepreneurEIP Enterprise Incubation ProgrammeERM Enterprise Risk Management


EU European UnionEXCO Executive CommitteeGDP Gross Domestic ProductsGRAP Generally Recognised Accounting PracticeHACCP Hazard Analysis Critical Control PointsHR Human ResourcesIBASA Institute of Business Advisors Southern AfricaICT Information and Communication TechnologyIDC Industrial Development CorporationIGMDP Incubation Governance Management Development ProgrammeIMEDP Informal and Micro Enterprise Development ProgrammeIOD Injury on DutyISO International Organisation for StandardisationKZN KwaZulu-NatalMOA Memorandum of AgreementMOV Means of VerificationMPC Monetory Policy CommitteeMTSF Medium-Term Strategic FrameworkNACH National Anti-Corruption HotlineNAMAC National Manufacturing Advisory CentreNDP National Development PlanNSF National Skills FundNYDA National Youth Development AgencyOHSA Occupational Health and Safety ActOHSAS Occupational Health and Safety Assessment SeriesPDI Previously Disadvantaged IndividualPERA Premiers Entrepreneurship Recognition AwardsPFMA Public Finance Management ActPSC Public Service Commission


QMS Quality Management SystemRMI Retail Motor IndustrySABIC South African Business Incubation ConferenceSABS South African Bureau of StandardsSABTIA South African Business and Technology Incubation AssociationSANS South African National StandardsSAQI South African Quality InstituteSARB South African Reserve BankSBD Small Business DevelopmentSCOPA Standing Committee On Public AccountsSeda Small Enterprise Development AgencySefa Small Enterprise Finance AgencySHEQ Safety, Health, Environment and QualitySMME Small, Medium and Micro EnterpriseSTP Seda Technology ProgrammeTTF Technology Transfer FundTVET Technical Vocational Education and TrainingTWIB Technology for Women in BusinessUIF Unemployment Insurance FundWi-Fi Wireless Fidelity



FOREWORD BY THE MINISTER OF SMALL BUSINESS DEVELOPMENT

The 2018/19 Annual Report of the Small Enterprise Development Agency (Seda) gives an account of the milestones, challenges and achievements of this important Agency of government. It coincides with a close-out period on the work

of the 5th administration on enterprise development and the cusp of the 6th administration. Interestingly, the National Development Plan (NDP) remains the lodestar of our enterprise development effort and thus some of the priorities were merely revised in words.

The NDP has set two key goals for the small business development ecosystem, namely: (a) to enhance economic growth through SMMEs as assessed through an increased contribution by the sector to GDP and (b) to create 90% of South Africa’s 11 million needed jobs by 2030 through the SMME sector. Therefore, an assessment of the performance of Seda in the 2018/19 financial year, must be measured against progress made to achieve these goals. The 2014 – 2019 Medium-Term Strategic Framework (MTSF) which is a performance guide for the period under review, translated the NDP goals into, amongst other objectives (a) Integrated service provision to SMMEs using One-Stop Shop Platform, and (b) Equitable access to responsive and targeted products and services that enable growth and development of SMMEs and cooperatives. These two objectives find expression in the new operating

model for the department of Small Business Development because they are key pillars to success of any enterprise development programme.

Specific to Seda, the 2014 – 2019 MTSF directed the actions of the Agency through specific interventions of its Outcome 4: Decent Employment through Inclusive Economic Growth, viz. Township and rural economies; Programmes to ensure increased access to employment and entrepreneurship; and Programmes enabling coaching, incubation and other forms of company specific intensive support. The Seda current network of 53 branches, 17 information kiosks, 74 outreach offices where Seda co-locates with other ecosystem partners and 76 incubation centres was aimed at improving access to support by our people, mostly located in townships and rural areas. This is a notable achievement but the challenge of reducing the distance travelled to a service point for our entrepreneurs and startups remains. This Annual Report concedes that only 47.7% of the country’s population lives within 30kms driving distance to a Seda Centre.

We have noted the expanding network of incubators and co-location offices as a show of Seda’s commitment to improve on its spread of service points, because improved access to Seda services is a key step towards opportunities for entrepreneurship and intensive support for SMMEs

and cooperatives. Thus, Seda supported by the private sector, will lead a drive to rollout incubation centres in our townships and rural areas to provide youth-driven start-ups and SMMEs with financial and technical advice in their business journeys. Therefore, Seda as the national coordinator for enterprise development must strengthen its partnership strategy, coordination, and regulatory role for incubators including directing enterprise development funds from partners to key programmes that are aligned to the national priorities. In addition, the 2014 – 2019 MTSF objective of integrated service provision to SMMEs using one-stop platform, has become one of the first 200 days delivery priorities in the 6th administration as we strive for improved access to business support.

The work of Seda throughout the 5th administration and the year under review must also be contextualized through the economic conditions that prevailed during the period. The GDP contracted, the number of SMMEs contracted and the employment through SMMEs contracted by almost 20% resulting in a loss of more than 1.6 million job opportunities that should have been created by SMMEs. Therefore, we join Seda in celebrating the successes of its enterprise development programme in enterprises such as Algoa Cement Industries, Magesh Logistics, Soylite, Nyanya Resort, Mamabheka Tyre and Fitment Centre, Renabo Plastic Moulders and Furniture, Bathlako Temo Primary Cooperative, Stav Trading and Projects, Ezy Mok General Trading, Boomerang Marketing Solutions, Excellere Foods, Aminachem, and Hygienie Solutions. For us, these successes must be multiplied in tens of thousands if Seda is to make a meaningful impact in line with the goals of the NDP.

We are emboldened in our view of multiplying those successes in their tens of thousands because Seda over the years has mastered operational excellence and thus its machinery should be agile and responsive to the challenges facing the SMME ecosystem and the high

targets set by our State President. We are confident that with the results reported in this Report, Seda can take over the responsibility of the lead incubator for South Africa as we champion the country’s effort of robust economic growth and job creation through SMMEs.

Overall, Seda’s efforts during the year under review sought to strike a balance between helping start-up enterprises survive the nascent stages of business establishment and helping established small enterprises to expand and be sustainable. Performance on a number of key performance indicators show that Seda had a good performance during the 2018/19 financial year. We must congratulate Seda for its unqualified audit report for 2018/19 and acknowledge the role of all the partners that have contributed towards the attainment of our vision in the 2018/19 financial year.

I wish to thank my predecessor, Minister Lindiwe Zulu for the political guidance and policy direction she provided to Seda in the last 5 years and thank the Board of Directors of Seda, Management and Staff for their unwavering dedication and hard work in implementing programmes geared towards sustainable SMMEs and Cooperatives development and support.

As we commence with the programmes of the 6th administration, the sleeves must be pulled higher and all shoulders to the wheel because the department and its entities are right at the forefront of economic growth and job creation. I am confident that as a Portfolio, we will be able to support enterprises that will give us the relevant impact in terms of job creation and increased contribution to the GDP from 35% to 50% by 2024.

Khumbudzo Ntshavheni, MP Minister of Small Business Development



Successful implementation of initiatives under these strategic pillars was guided by Government’s mandate

of reducing unemployment, improving economic prospects of supported businesses, and improving

sustainability of supported business beyond two years.

OVERVIEW BY THECHAIRPERSON


Tthis annual report presents Seda’s performance in 2018/19 financial year. The reflected achievements attest to the commitment of Seda management and employees in setting high performance standards and achieving

them. This accomplishment would not have been possible without the continuous support of the Department of Small Business Development (DSBD) and broader stakeholders who provide support and resources to enable the organisation to reach its goals.

In the year under review, the organisation prioritised three strategic pillars which are the cornerstone of our strategy, these being Increase Service Delivery, Stakeholder Partnership and Operational Excellence. Successful implementation of initiatives under these strategic pillars was guided by Government’s mandate of reducing unemployment, improving economic prospects

of supported businesses, and improving sustainability of supported business beyond two years. The targeted initiatives in these strategic pillars have contributed in improving support offered to small businesses and cooperatives. A snapshot of key initiatives that were implemented is shared below:

1. SERVICE DELIVERY

The organisation acknowledges that service access should complement the growing number of new SMMEs who seek business development services. Apart from the existing branch network and extensive outreach programme, Seda has increased the number of co-location points to 74, which are located in Municipalities where Seda does not have a branch office. Incubators supported through the Seda Technology Programme have been increased to 76. The organisation has broadened its service offerings


through online services and this initiative has resulted in a steady growth of SMME’s supported through this platform. The organisation is continuously assessing the external operating environment to ensure that the service delivery model and programmes offered remain relevant to current and potential SMMEs.

2. STAKEHOLDER PARTNERING

Seda recognises that like-minded stakeholders provide enormous value in augmenting support offered to SMMEs through cost sharing and improved client reach. It is equally acknowledged that effective stakeholder engagement results in improved synergies between partners and facilitates beneficial streamlined services. In the year under review, Seda hosted a number of round table discussions where stakeholders from both the private and public sector participated. Potential areas of collaboration were identified, and plans are unfolding to ensure that there is

ongoing support for future projects. In order to assess the effectiveness of stakeholder engagement, Seda conducts a stakeholder satisfaction survey to gauge the level of satisfaction from its stakeholders. The results obtained in 2018/19 financial year indicate that 66% of engaged stakeholders are satisfied with Seda services. This result presents an opportunity for improved focus on long term partnerships and better engagement going forward.

3. OPERATIONAL EXCELLENCE

The adoption of the Balanced Scorecard as a strategic management framework elevated the need to capacitate the organisation to deliver on its mission. Key initiatives that were championed in the year under review include;

• Greater investment in professionalising Business Advisory Services through IBASA

• Ongoing staff training and development to improve levels of competence

Incubators supported through the Seda Technology Programme have been increased to 76. The organisation has broadened its service offerings through online services and this initiative has resulted in a steady growth of SMME’s supported through this platform.


• Streamlining business processes to enhance efficiency

• Better programme administration and financial discipline, and

• Continuous employee engagement to refine our delivery approach for enhanced client and stakeholder benefit.

The organisation concedes that more needs to be done to improve the level of support offered to SMMEs. Therefore, strategic partnerships with different role players in the

small business development ecosystem, a skilled and competent workforce and a well-defined delivery model will go a long way in responding to this need.

Mr Mbulelo SogoniChairperson

Key initiatives that were championed in the year under review include; Greater investment in professionalising Business Advisory Services through IBASA


Seda participated in the EU Funding plenary meetings to unpack the approach that will be adopted to

ensure that SMMEs benefit from the EU Fund. This fund is intended to complement government funding and

propel supported businesses to a new level.

REPORT OF THEACCOUNTING OFFICER


In the year under review, Seda continued to drive its strategy implementation, which focused on improving client reach and strengthening support offered to clients. The organisation adopted a number of initiatives to improve its sustainability and efficiencies. Key

consideration in 2018/19 financial year entailed aligning Seda offerings to the Portfolio Strategic Framework that clearly spelt out the delineation of responsibilities between DSBD and its agencies. The organisation continued with the institutionalisation of the balanced scorecard by cascading tier 1 to all divisions. The organisation actively participated in the review of Small Business Act which was intended to align the Act to emerging trends locally and globally.

Seda participated in the EU funding plenary meetings to unpack the approach that will be adopted to ensure that SMMEs benefit from the EU fund. This fund is intended to complement government funding and propel supported businesses to a new level. One of Seda’s strategic objectives is to improve stakeholder engagement. In the 2018/19 financial year, Seda held a number of engagement sessions with various stakeholders to improve coordination of support offered to SMMEs’. The intention was to identify areas of collaboration where different players in the sector can pool their resources in order to maximise client support. There was great enthusiasm for stakeholders who indicated their continued support and willingness to work with Seda for the benefit of the SMMEs.

Stakeholder engagement at provincial and municipal level resulted in the increased number of co-location points, which are assisting the organisation to improve small business support mainly in under serviced areas where

Seda does not have office presence. The organisation continued to focus on programmes that are likely to improve the clients’ business performance and position, through enhancing access to markets by facilitating supplier development programme linkages, mentorship, coaching and export readiness development and other clientele customised support interventions.

The organisation is continuously reviewing its programmes and delivery approach to ensure that targeted clients and key stakeholders can experience value in the support offered. The organisation enhanced the roll out processes of the IMEDP programme which was transferred from the DSBD in the third quarter of 2017/18 financial year. At the end of the financial year, the organisation had issued equipment to more than 3000 eligible informal and micro enterprises who were deemed to have potential for business expansion and sustainability. This support is intended for informal and micro business to improve their business productivity.

Seda expanded the incubation footprint where nine incubators were approved for Enterprise Incubation Programme (EIP) funding. Technology transfer and quality interventions are delivering value for the supported clients. In 2018, Seda also hosted the 2nd South Africa Business Incubation Conference (SABIC) which attracted over 700 local and international guests. The exhibition show-cased 66 exhibitors from both private and public incubation ecosystems across the country. Better budget management and mechanisms to identify other sources of revenue can enhance service rendered to South African SMMEs who have a great potential for driving economic growth and job creation.


1. HIGHLIGHTS ON ORGANISATIONAL PERFORMANCE FOR THE YEAR ENDING 31 MARCH 2019

Seda noted significant successes during the 2018/19 financial year, the organisation achieved or exceeded targets on 93% of its planned performance measures, against a target of 75%. Some of the most notable achievements during the year under review are:

• 42,848 clients were reached through Provincial promotional and marketing actions

• 30,049 clients attended entrepreneurship awareness session

• 10,732 diagnostic assessments conducted on client’s businesses

• 9,110 enterprises were trained in business management

• 901 cooperatives were adopted and assessed

• 861 clients trained on national and international standards

• 2,860 clients supported through incubation

• 465 clients supported through innovation

• 266 clients supported with quality interventions

• 6,957 new jobs created by supported clients

• 19,064 jobs sustained by supported clients

• 1,75 billion, turnover increased on supported clients

• 12,042 learners participated in entrepreneurship in schools

This performance evens up with Seda’s client journey model which advocates for long-term, multiple interventions as opposed to once-off interventions.

Looking forward, the organisation explores models to support its efforts to highlight the role and importance of cooperatives in socio-economic development through clustered support programmes working with public and private sector partners.


2. ENTERPRISE RISK MANAGEMENT AND INTERNAL AUDIT

Organisational risk management has improved as a result of a rigorous evaluation process that gets conducted and reported to EXCO on a monthly basis. Monthly risk assessments by management assist in early detection and response to emerging risks and informs annual risk assessment conducted as part of the organisational strategic planning process.

The Audit and Risk Committee as well as the Board are also updated on organisational risk matters on a quarterly basis. Risk Management working with Internal Audit provide primary combined assurance oversight which includes tracking root cause and mitigation measures linked to both internal and external audit findings for the prior financial year.

3. LOOKING AHEAD

Significant efforts are continuously made to ensure that the organisation works closely with stakeholders in the SMME development sector, through following an integrated approach in implementing its programmes in partnership with others in the ecosystem. Looking forward, the organisation will explore models to support cooperatives through clustered support programmes working with public and private sector partners.

Seda will continue to prioritise its strategy implementation and performance measurement by institutionalising the balanced scorecard methodology in all divisions. This will ensure management focus on improved service quality, business processes and capabilities to match up to the huge expectations on the organisation. Seda prides itself in being the organisation with a unique mandate of providing and facilitating business development services nationally. The organisation takes pride in its national network of 53 branches nationally, and the support of 76 incubators across all provinces. The organisation will continue to work with private organisations and government institutions in different projects and programmes to accelerate service delivery to SMME’s and cooperatives.

Ms Mandisa TshikwatambaCEO


STATEMENT OF RESPONSIBILITY

AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT

All information and amounts disclosed in the annual report are consistent with the annual financial statements audited by the Auditor General.

The annual report is complete, accurate and is free from any omissions.

The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury.

The annual financial statements (Part E) have been prepared in accordance with the Standard of Generally Recognised Accounting Principle (GRAP) and the requirements of the Public Finance Management Act of South Africa (PFMA).

The accounting authority is responsible for the preparation of the annual financial statements and for the judgements made in this information. The accounting authority is responsible for establishing and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability

of the performance information, the human resources information and the annual financial statements.

The external auditors are engaged to express an independent opinion on the annual financial statements.

In our opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the public entity for the financial year ended 31 March 2019

Yours faithfully

Mr Mbulelo SogoniChairperson 31July 2019

Ms Mandisa Tshikwatamba Chief Executive Officer31July 2019


STRATEGIC OVERVIEW

Seda was established in December 2004 through the National Small Business Amendment Act – Act 29 of 2004 - as an agency under the dti. The establishment was done by merging three entities: Ntsika Enterprise Promotion Agency, National Manufacturing Advisory Centre (NAMAC) and the Community Public Private Partnership (CPPP) programme. The GODISA Trust and the National Technology Transfer Centre were merged with Seda in April 2006, becoming the Seda Technology Programme (STP). The small enterprise support function of the South African Quality Institute (SAQI) and the technology-related activities of the Technology for Women in Business (TWIB) were incorporated with STP in 2008. STP was fully integrated into Seda structures in 2009. In 2014, Seda’s mandate and functions were transferred from the dti to the DSBD.

VISION

To be the centre of excellence for small enterprise development in South Africa.

The vision is translated into high level competency, motivation, accountability as well as customer drive of Seda. In order to become the Centre of Excellence, we must strive towards improving all these critical areas.

MISSION

To promote entrepreneurship and develop small enterprises by providing customised non-financial business support services that results in business growth and sustainability in collaboration with other role players


Seda’s mission gives a clear-cut framework for everything Seda does. This is shown in the product range of Seda as well as in the approach, attitude and working methods of Seda staff. The success of Seda is ultimately measured against this mission: how well Seda is ensuring the growth and sustainability of the small enterprises with which it has interacted.

CORE VALUES

• Nurture

• Innovation

• Customer Centricity

• Responsible Conduct

The core values govern Seda’s operations and relationships with stakeholders such as clients, partners, employees, local communities and the shareholders. The core values remain constant and are not affected by changes in the operational environment and management. The meaning of Seda’s core values is explained as follows:

NURTURE

We create a nurturing environment by partnering with our clients and employees, and in the way in which we care and support them.

INNOVATION

We foster innovative ideas and solutions to deliver exceptional customer service.

CUSTOMER CENTRICITY

We place customer service excellence at the centre of everything we do.

RESPONSIBLE CONDUCT

We behave with integrity in all our actions, always acting in the best interest of Seda.


STRATEGIC GOAL AND OBJECTIVES

Impact is the long-term/ultimate outcome or consequence of Seda’s activities and the effect this impact has on people and the environment. Seda’s legislative mandate and mission give direction regarding what is expected from Seda in the long term. The impact of Seda is measured through periodic evaluations within a range of three to five years and these evaluations are conducted by the shareholder.

The organisation has focussed its efforts in ensuring that it delivered on the following strategic themes:

• Increased service delivery

• Improve operational excellence

• Increase stakeholder partnering

While working towards the above strategic themes, Seda will strive to contribute towards the following strategic objectives:

IMPROVE STRATEGIC ALIGNMENT

Through strategic alignment the organisation seeks to ensure that our service offerings, client profile and targeted sectors meet the expectation of our shareholder. This also includes issues of compliance and governance.

IMPROVE KNOWLEDGE & SKILLS

Seda intends to continuously invest in improving employee’s knowledge and skills in order to improve service rendered to both internal and external customers.

IMPROVE SYSTEM INTEGRATION The organisation accepts that there should be continuous efforts to integrate systems due to the expected benefit of reducing duplication and improving process efficiencies.

IMPROVE SERVICE ACCESS The organisation intends on increasing service access points and the number of clients that receive Seda services.

IMPROVE STAKEHOLDER ENGAGEMENT Through this objective the organisation seeks to improve coordination and collaboration with stakeholders in delivering client support.

IMPROVE OPERATIONAL EFFICIENCY The focus of this objective is to ensure that the quality and the speed of services rendered to internal and external clients meet and exceed their expectations.

IMPROVE SERVICE DELIVERY MODEL Seda intends to continuously review its delivery model to determine its relevance in accordance with the client profile and their geographical spread.

IMPROVE ORGANISATIONAL PERFORMANCE Organisational performance is determined by how well Seda is fulfilling its mandate of supporting SMME’s & Cooperatives in order to grow and be sustainable. All strategic objectives under organisational capacity and internal process perspective have a direct contribution in improving organisational performance.


INCREASE FUNDING The organisation seeks to identify and engage potential partners who can contribute financially in order to supplement its funding needs and to support SMME’s and cooperatives effectively.

IMPROVE COST EFFICIENCIES The intention of this objective is to ensure that Seda identifyiesand allocates its financial resources in areas where it can obtain great return for its investment.

IMPROVE STAKEHOLDER SATISFACTION This objective focuses on understanding if our internal and external stakeholders are satisfied with the quality and efficiency of service offered by the organisation in order to meet our mandate.

IMPROVE CUSTOMER SATISFACTION

Seda intends to continuously assess if our customers are satisfied with the quality of our programmes, the efficiency in delivering them and their relevance in making a lasting impact in their business.


PRODUCTS AND SERVICES

Seda provides business related information, advice, consultancy, training and mentoring services in all areas of enterprise development. These services aim at providing solutions related to various business functions from production to human resources, finance, marketing and export development. Rural enterprise development and cooperatives are supported through the Cooperatives and Community Private Partnerships Programme (CPPP). Through Stp, Seda also provides technology transfer, business and technology incubation services, as well as incentives for management systems implementation (such as ISO9001 and OHSAS 18001), product testing and certification.

Seda aims to establish a long-term relationship with clients. Prior to embarking on any intervention, a Seda Business Advisor assesses the needs of the client and based on the assessment results the client, together with the Seda Business Advisor, drafts a development plan with specific development interventions. These services are delivered to the client either by Seda’s own staff or through business development service providers.

Seda’s target market covers small, medium and micro enterprises (SMME), including cooperatives, as well as potential entrepreneurs with a business idea. The definition of a small enterprise is provided for in the National Small Business Act of 1996 and it is based on the number of employees, turnover and fixed assets. Seda defines its clients according to the number of employees.

Historically, Seda has primarily focused on the micro and very small segments of the SMME sector, due to the sheer volumes and the number of people who want to start a business. The outputs in terms of clients assisted have been huge, but this has come at a cost on impact measures such as employment, profitability and sustainability of assisted clients. The current economic realities necessitate that Seda continues on the entire small enterprise sector, with the aim of reducing the mortality rate of nascent enterprises and creating an entrepreneurial culture at micro and survivalist level and creating jobs and globally competitive small enterprises at the small and medium enterprise level.

The service delivery network of Seda consists of delivery points located throughout the country. These points currently take the form of Seda branches, Seda enterprise development centres and Seda supported incubation centres. Seda also utilises information kiosks and mobile units to access remote areas. In addition, Seda co-locates primarily with local municipalities and various other partners in areas where it does not have a branch. As at end March 2019, Seda had an established network of 53 Branches, 9 mobile units, 76 incubation centres and 74 access points where Seda co-locates.


LEGISLATIVE AND OTHER MANDATES

NAME OF ACT PURPOSE

1. National Small Enterprise Act, No. 102 of 1996 amended

To provide for the establishment of the Advisory Body and the Enterprise Promotion Agency; and

To provide guidelines for organs of state to promote small business in the Republic; and to provide for matters incidental thereto.

2. Occupational Health and Safety Act, No. 85 of 1993

To provide for the health and safety of persons at work and for the health and safety of persons in connection with the use of plant and machinery;

The protection of persons other than persons at work against hazards to health and safety arising out of or in connection with the activities of persons at work;

To establish an advisory council for occupational health and safety; and to provide for matters connected therewith.

3. Public Finance Management Act, No. 1 of 1999 as amended

To regulate financial management in the national and provincial governments;

To ensure that all revenue, expenditure, assets and liabilities of those governments are managed efficiently and effectively; and

To provide for the responsibilities of persons entrusted with financial management in those governments and to provide for matters connected therewith.

4. Cooperatives Act, No. 14 of 2005 as amended

To provide for the formation and registration of co-operatives; the establishment of a co-operatives’ advisory board; the winding-up of co-operatives; the repeal of Act 91 of 1981; and connected matters.

5. Basic Conditions of Employment Act, No. 75 of 1997

To give effect to the right to fair labour practices referred to in section 23(1) of the Constitution by establishing and making provision for the regulation of basic conditions of employment; and thereby to comply with the obligations of the Republic as a member state of the International Labour Organisation; and to provide for matters connected therewith.

6. Income Tax Act, No. 58 of 1962 as amended

To consolidate the law relating to the taxation of incomes and donations, to provide for the recovery of taxes on persons, to provide for the deduction by employers of amounts from the remuneration of employees in respect of certain tax liabilities of employees, and to provide for the making of provisional tax payments and for the payment into the National Revenue Fund of portions of the normal tax and interest and other charges in respect of such taxes, and to provide for related matters.


NAME OF ACT PURPOSE

7. Labour Relations Act, No. 66 of 1995 as amended

To facilitate the granting of organisational rights to trade unions that are sufficiently representative;

To strengthen the status of picketing rules and agreements; to amend the operation, functions and composition of the essential services committee and to provide for minimum service determinations;

To provide for the Labour Court to order that a suitable person be appointed to administer a trade union or employers’ organisation;

To enable judges of the Labour Court to serve as a judge on the Labour Appeal Court;

To further regulate enquiries by arbitrators; to provide greater protection for workers placed in temporary employment services;

To regulate the employment of fixed term contracts and part-time employees earning below the earnings threshold determined by the Minister;

To further specify the liability for employer’s obligations; and to substitute certain definitions; and to provide for matters connected therewith.

8. Employment Equity Act, No. 55 of 1998 as amended

To provide for employment equity; and to provide for matters incidental thereto.

9. Promotion of Access to Information Act 2 of 2000

The purpose of this Act is to give effect to the constitutional right of access to any information held by the state, as well as information held by another person that is required for the exercise or protection of any right.

10. Promotion of Administrative Justice Act 3 of 2000

The purpose of this Act is to give effect to the right to administrative action that is lawful, reasonable and procedurally fair and to the right written reasons for administrative action as contemplated in section 33 of the constitution of the Republic of South Africa, 1996 and to provide for matters incidental thereto.


BOARD

CHIEF EXECUTIVE OFFICER

STAKEHOLDER MANAGEMENT,

PUBLIC RELATIONS AND MEDIA

LEGAL AND CORPORATE GOVERNANCE

INTERNAL AUDIT RISK AND COMPLIANCE

CORPORATE SERVICES FINANCESEDA TECHNOLOGY

PROGRAMME

STRATEGY AND INFORMATION MANAGEMENT

ENTERPRISE DEVELOPMENT

HUMAN RESOURCES CENTRE OF EXCELLENCE

PROVINCIAL OFFICES (9)

FINANCIAL ACCOUNTING

QUALITY, STANDARDS AND TECHNOLOGY

TRANSFER

INFORMATION AND COMMUNICATION

TECHNOLOGY

COOPERATIVES AND COMMUNITY PUBLIC

PRIVATE PARTNERSHIP

HUMAN RESOURCES OPERATIONS

BRANCHES (53)MANAGEMENT ACCOUNTING

INCUBATIONBUSINESS

INFORMATION SYSTEMS

PROGRAMME ANALYSIS DEVELOPMENT AND

LEARNING

FACILITIES MANAGEMENTSUPPLY CHAIN MANAGEMENT

INDEPENDENT INCUBATION CENTRES

(76)

STRATEGY AND ORGANISATIONAL PERFORMANCE MANAGEMENT

COMMUNICATIONS AND MARKETING Division National Office Provinces Independent Incubation Centres

ORGANISATIONAL STRUCTURE


SEDA EXECUTIVE MANAGEMENT

Executive Manager: Corporate ServicesBA,BPhil: Policy Studies & KnowledgeManagementPGD: Health Management

Ms Prudence Gwala-mahayeActing Chief Strategy and Information OfficerBachelor of Technology Degree: Public Management N Diploma: Information Technology

Mr Buntu JobodwanaExecutive Manager:Seda Technology ProgrammeND - Industrial EngineeringBTech - Industrial EngineeringMBL

Ms Nosipho KhonkwaneChief Financial OfficerB Compt HonsM Com, CA(SA)

Mr Norman MziziExecutive Manager: EnterpriseDevelopmentB AdminB Com Hons EconomicsMA Development Economics

Ms Ntokozo Majola Ms Prudence Gwala-MahayeExecutive Manager: Corporate ServicesBABPhil: Policy Studies & KnowledgeManagementPGD: Health Management

Ms Ntokozo MajolaExecutive Manager: Enterprise DevelopmentBAdminB Com Hons EconomicsMA Development Economics

Mr Norman MziziChief Financial OfficerB Compt HonsM Com, CA(SA)

Ms Nosipho KhonkwaneExecutive Manager: Seda Technology ProgrammeND - Industrial EngineeringBTech - Industrial EngineeringMBL

Mr Buntu JobodwanaActing Chief Strategy and Information OfficerND Information Technology Banking Diploma BTech Public Management

PERFORMANCE INFORMATIONPART B


AUDITOR’S REPORT OF THE PERFORMANCE INFORMATION

The AGSA currently performs the necessary audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the report to management, with material findings being reported under the Predetermined Objectives heading in the report on

other legal and regulatory requirements section of the AGSA’s report.

Refer to page 99 to 103 of the Annual Report for the AGSA’s report, published in Part E: Financial Information.


SITUATIONAL ANALYSIS

PERFORMANCE DELIVERY ENVIRONMENT

South Africa successfully hosted the job summit that agreed on far-reaching measures of which when successfully implemented will almost double the number of jobs being created in our economy going forward. The Presidential Job Summit of 2018 resulted in concrete agreements between organised labour, business, community and government. These agreements being successfully implemented by social partners, it is estimated that 275 000 additional direct jobs will be created every year

Given the key role that small businesses play in stimulating economic activities, employment and advancing broad based empowerment, Government has focused significantly on expanding the small business incubation programme that Seda championed in partnership with other stakeholders.

The establishment of the Department of Small Business Development (DSBD) in 2014 was one of the most concrete manifestations of the NDP aspirations. DSBD is mandated to lead and coordinate an integrated approach in the promotion and development of small businesses and co-operatives to ensure an enabling legislative and policy environment to support growth and sustainability.

In the South African context SA’s Gross Domestic Products (GDP) contracted by 2.2% (annualised) in real terms during the first five months of 2018.The Bureau of Economic Research’s (BER) forecast was cut back from 1.9% in April 2018 to 1.4% in July 2018; the SARB forecast cut back from 1.7% to 1.2% between May 2018 and July 2018 Monetary Policy Committee (MPC) meetings

The contraction in the number of SMMEs and the decline in SMME employment reported in the BER business confidence report persists from the first quarter of 2018, despite a quarterly rise of 1.5% compared to the fourth

Decline in the number of SMMEs was notably more serious in the formal sector, i.e. 9.2%, which ties in with the large contraction in SMME employment; excluding the decline in the number of SMME owners. The contraction in SMME employment amounted to a shocking 20%. Therefore, the number of employees in the SMME sector contracted from 8.1 million in 2017 Q1 to 6.44 million in 2018 Q1, i.e. a loss of more than 1.6 million employment opportunities. The sustained pressure on the SMME sector is a symptom of the poor broader economic conditions.

Closer inspection reveals that the number of employers fell by a significant 11.4% in this period, an indication that firms struggle to survive. Despite fewer employers, the remaining firms managed to employ 1.5% more people, an indication that larger firms are growing as small ones disappear. Of all self-employed people, 5.1% employed others in first quarter of 2018, while 9.6% worked for themselves. Combined at 14.7% (or 2.44 million), this comprises the proxy measure for the number of SMMEs in South Africa.

Seda is an entity of government and has been actively involved in assisting government to drive the Radical Economic Transformation Agenda. There is an emphasis on Township and Rural Enterprise development where Seda played a profound role in bringing enterprise development support to enterprises that are coming from marginalised areas in a cost effective manner.


ORGANISATIONAL DELIVERY ENVIRONMENT

The organisation has increased its footprint through Branch service network accessing a variety of services from information to export readiness interventions, provided directly or through Seda and partners. The organisation continues to expand through leadership in the incubation ecosystem in South Africa with the establishment and support of the following national and regional knowledge platforms.

The Incubation Governance Management Development Programme (IGMDP). This is a learning and development support programme aimed at building and expanding the incubation management knowledge base of South Africa. The first cohort of 26 learners completed the one-year programme in February 2018. We continue to build a strong South African incubation and Accelerator entrepreneurship ecosystem and have supported the re-launch of South African Business and Technology incubation Association (SABTIA). This partnership has ensured that incubation practitioners in Southern Africa will have access to incubation knowledge and capacity building programmes and will provide common service delivery standards.

The organisation has made strides in improving operational efficiency and great milestones in reducing turn-around times for Technology Transfer Funds. Seda has introduced new offerings to encourage an entrepreneurship spirit from youth and women. The introduction of Pitch and Perfect master classes and Innovation Forum was used as pull approach to innovation, facilitating links between industry challenges and solutions by innovative small enterprises within Seda network.

The organisation continues to leverage on strategic partnerships to ensure that small enterprises and cooperatives have access to markets and are market-ready through use of appropriate technologies. These programmers and partnerships seek to stimulate economic growth, improve small enterprises performance, productivity and long – term sustainability, improve competitiveness, promote quality and standards implementation amongst SMME’s, and reduce the failure rate of small businesses.

Figure 1: SMME profile per province

Western Cape Eastern Cape Northern CapeFree State KwaZulu-Natal North WestGauteng Mpumalanga Limpopo


Seda has identified 115 strategic partners in 2018/19, which collaborated with Seda for strategy implementation. These stakeholders have enhanced Seda’s strategy implementation in areas such as programme complementary, increase access points, research and development, staff development and professionalisation of the business advisory space.

Seda has also conducted a Geospatial Mapping in order to improve on their access points, the study’s results and key insight were as follows:

• A total of 89.3% of the country’s population lives within 100km driving distance of a Seda branch office.



ALIGNMENT TO GOVERNMENT PRIORITIES

The National Development Plan (NDP), Vision 2030 ascribes a critical role to SMMEs and Cooperatives in contributing to the growth of the South African economy towards eliminating inequality and reducing poverty. It views SMMEs and Cooperatives as economic empowerment vehicles for the historically disadvantaged. It also recognises that the small business sector has previously been neglected during much of the period following the discovery of minerals (diamonds and gold), and the establishment of a modern, capitalist economy with almost exclusive white control.

Seda plans for 2018/19 financial year are aligned to Portfolio Strategic Framework 2015/16- 2019/20, feedback on past performance from Department of Small Business Development (dsbd) and the Portfolio Committee on Small Business Development, as well as from other delivery partners and clients.

The alignment to national mandates and outcome, the Portfolio Strategy 2015/16-2019/20 provided key guidance. The Portfolio Strategic Framework had given five strategic Outcome Oriented Goals that are linked to the National Development Plan (NDP 2030)

The Medium Term Strategic Framework (MTSF) Plan for 2014 - 2019 outcomes were:

• Integrated service provision to SMMEs using one-stop shop platform

• Policy planning and coherence in the sector, that promotes an enabling ecosystem for SMMEs and co-operatives

• Equitable access to responsive and targeted products and services that enable the growth and development of SMMEs and co-operatives

• An enhanced contribution to socio-economic development outcomes by the sector

• Sound governance and the optimal utilisation of available resources

The Department of Small Business Development and its implementing agencies have worked diligently in the year 2018/19 under review to promote entrepreneurship in South Africa and to create conducive environments for SMME growth and sustainability.


Table 1: Strategic Outcome Oriented Goal Alignment – DSBD and Seda

NATIONAL DEVELOPMENT PLAN MEDIUM TERM STRATEGIC FRAMEWORK NINE POINT PLAN

1. To enhance economic growth through SMMEs as assessed through an increased contribution by the sector to GDP;

2. To create 90% of South Africa’s 11 million needed jobs by 2030 through the SMME sector, and so contribute to reducing the unemployment rate to 6%;

Outcome 4: Decent Employment through Inclusive Economic Growth1. Township and rural economies2. Programmes to ensure increased

access to employment and entrepreneurship

3. Provide coaching, incubation, intensive support

1. Public Procurement2. Access to Finance and Non-Financial

Support3. Building market access4. Township and Rural Enterprises

strategy

Outcome 7: Vibrant, equitable, sustainable rural communities:1. Promote sustainable rural enterprises

and industries in areas with economic development potential

The following are strides that DSBD is putting in place to counteract the challenging economic environment.

• Policy and planning coherence in the sector, that promotes an enabling ecosystem for SMMEs and co-operatives.

• Equitable access to responsive and targeted products and services, that enable the growth and development of SMMEs and co-operatives.

• An enhanced contribution to socio-economic development outcomes by the sector.

The Department of Small Business Development is contributing mainly to goal 1, 3, 4 and 5. Where Seda is contributing to goal 2, 4 and 5. Seda and DSBD are expected to work together in researching and targeting programme design including during the piloting of programmes.

Goal 5 outlines the expected role of support divisions in the achievement of the SBD portfolio, there is an undertaking to explore the collaboration within the portfolio where support services could be shared among all players within the SBD portfolio to improve interdependence

The above strategic outcome oriented goals are the pillars of Seda performance, the organisation’s programmes and intervention are organised to present meaningful contributions to sector growth.

Seda has identified areas where it can play a meaningful role in contributing to the government aspiration of reducing unemployment and improving GDP. Township and rural enterprises interventions were key focus on the year under review in order to improve market access for the supported SMME’s and Cooperatives.


PERFORMANCE HIGHLIGHTS

The performance information reported here for the year under review supports the strategic indicators in the Seda 2017/18 Annual Performance Plan. Overall Seda achieved most of its set targets and received an unqualified audit on finance and performance information. Key performance highlights are:

• 42,848 clients were reached through Provincial promotional and marketing actions

• 30,049 clients who attended entrepreneurship awareness session

• 10,732 diagnostic assessments conducted on client’s businesses

• 9,110 enterprises were trained in business management

• 901 cooperatives adopted and assessed

• 861 clients trained on national and international standards

• 2,860 clients supported through incubation

• 465 clients supported through innovation

• 266 clients supported with quality interventions

• 6,957 new jobs created by supported clients

• 19,064 jobs sustained by supported clients

• 1,75 billion, turnover increased on supported clients

• 12,042 learners participated in entrepreneurship in schools

• 79.01% of Seda budget allocated to core delivery.

This performance compliments Seda’s client journey model which advocates for long-term, multiple interventions as opposed to once off interventions.


SEDA 2018/2019 ANNUAL PERFORMANCE REPORT

Seda’s performance information 2018/19 is aligned with the performance indicators and targets in its Annual Performance Plan 2018/19. Seda achieved and exceeded performance targets on twenty eight out of twenty nine strategic indicators.

The performance against strategic indicators are tabulated below.

The following keys applies:

GREEN DENOTES TARGET IS ACHIEVED OR EXCEEDED

RED DENOTES TARGET IS NOT ACHIEVED

STRATEGIC OBJECTIVE

STRATEGIC INITIATIVE

PERFORMANCE MEASURE OR

INDICATORANNUAL TARGET

ACTUAL ACHIEVEMENT REASONS FOR VARIANCE

MEASURES TAKEN TO RECTIFY

SOURCES OF VERIFICATION

RESPONSIBLE EXECUTIVE/SENIOR

MANAGER

PROGRAMME 1: ENTERPRISE DEVELOPMENT

Improve Service Access

Increase number of enterprises accessing Seda services

Number of clients who attended entrepreneurship awareness (Briefing Sessions)

20,000 30,049 There was a high number of pre-start up clients who showed an interest in starting small businesses which resulted in an increased number of briefing sessions.

None Attendance Register

Executive Manager: Enterprise Development Division

Number of diagnostic assessments conducted on clients businesses

10,679 10,732 The impact of partnerships, successful outreach initiatives and an increased focus on business assessments contributed to this performance.

None Assessment Reports


Number of enterprises trained in business management (Group training etc.)

5,000 9,110 Pre-exhibition training sessions and partnerships with stakeholders has resulted in increased number of training interventions.




STRATEGIC OBJECTIVE








MANAGER


Improve Service Access (continued)

Increase number of enterprises accessing Seda services (continued)

Number of interventions implemented

4,000 4,773 Business Advisors played a proactive role in assisting clients with internal initiatives and interventions.

None Service Level Agreements


Increase number of cooperatives accessing Seda services

Number of cooperatives assessed/ adopted

600 901 Regional facilitators and Business Advisors have worked together to strengthen the support offered to cooperatives.

None Assessment reports/Adoption Forms


Number of interventions implemented on adopted cooperatives

100 359 Referrals received from external stakeholders for cooperatives support resulted in more interventions being implemented.

None Service Level Agreements


Increase number of enterprises supported through enterprise development programmes

Number of clients supported through National Gazelles

40 70 30 new Gazelles were added into the programme and they have signed the memorandum of agreement to receive support from business doctors.

None Participation Agreements


Number of clients supported through enterprise coaching

350 153 The number of enterprises participating in the programme was 170, However, due to drop outs during the year, the final number was reduced to 153.

Going forward there will be improved recruitment and better engagement with selected enterprises to ensure that the observed challenges are mitigated.

Attendance Register



STRATEGIC OBJECTIVE








MANAGER



Increase number of enterprises supported through enterprises development programmes (continued)

Number of learners participating in entrepreneurship in schools

10,000 12,042 This performance was due to increased interest by supported schools.



Number of clients supported through export, exhibitions & training

400 799 Different clients across the country benefited from Export Awareness workshops, Export Orientation Course, International Trade workshops, and local and international exhibitions.




STRATEGIC OBJECTIVE








MANAGER



Increase number of informal businesses accessing Seda services

Number of informal businesses supported (BESD)

350 430 The achievement is due to mentorship support offered to informal business by Enterprise Development Practitioners.

None Coaching Agreements


Increase number of clients trained in quality improvement

Number of clients trained on national and international standards

850 861 The increase in the number of clients supported is due to additional requests received from branches.



Increase service access points

Number of co-location points

59 74 53 co-locations were carried over from the previous financial year, there are 21 new co-locations points established for the current financial year.

None Co-location Agreements



STRATEGIC OBJECTIVE








MANAGER

PROGRAMME 2: SEDA TECHNOLOGY PROGRAMME

Improve Service Access

Increase the number of incubated clients

Number of clients supported through Incubation

2,210 2 860 Newly launched EIP incubators have contributed to the increased number of clients supported.

None Clients participation agreements

Executive Manager: Seda Technology Programme

Increase the number of clients supported through innovation

Number of clients supported through innovation

225 465 There was an increased interest in Pitch and Perfect from SMMEs.

None Attendance Registers


Improve product and service quality of supported clients

Number of clients supported with quality interventions

150 266 Increased requests from branches as well as additional budget support from ECIC contributed in this achievement.

None Client files Executive Manager: Seda Technology Programme

Increase in number of clients supported through TTF

Number of clients supported through Technology Transfer

27 50 ECIC provided extra funding and this enabled more clients to be supported.

None Minutes of Adjudication Panels


Increase in number of new SMMEs established

Number of new SMMEs established

338 498 Newly launched EIP incubators contributed to the increased number of new SMMEs established.

None CIPC Registration Certificate or Affidavit (in case of previously dormant smmes)


Increase in incubation graduates

Number of SMMEs graduated

140 199 More incubates completed their graduation milestones and have graduated from the incubation programmes.

None Incubation evaluation forms



STRATEGIC OBJECTIVE








MANAGER

PROGRAMME 3: ADMINISTRATION

Improve strategic alignment

Delivery on shareholders compact

Percentage achievement of shareholders compact deliverables

100% 100% There were 29 deliverables that were tracked for the whole year and all of them were achieved.


Senior Manager: Legal and Corporate Governance, Corporate Governance

Improve stakeholder engagement

Implement stakeholder engagement plan

Percentage of stakeholders engaged

50% 66% 200 stakeholders were identified for engagement in the 2018/19 financial year and 133 stakeholders were effectively engaged by the end of the year.

None Engagement contracts or Attendance Register

Senior Manager: Stakeholder Management and P/R

Improve Organisational Performance

Jobs created

Number of new jobs created by supported clients

3,000 6 957 Interventions implemented, consultations and business advice contributed in the increased number of new jobs created by supported clients.

None Improvement Assessment and Clients Business Evaluation

Executive Manager: Seda Technology Programme,


Jobs sustained

Number of jobs sustained by supported clients

8,000 19 064 Interventions implemented, consultations and business advice contributed in the increased number of new jobs sustained by supported clients.




Turnover increase

Amount increase in turnover in supported clients

1,25 Billion

1,75 Billion Interventions implemented, consultations and business advice contributed in the increased number of new jobs sustained by supported clients.





STRATEGIC OBJECTIVE








MANAGER

PROGRAMME 3: ADMINISTRATION

Increase funding

Improve partnering with stakeholders

Value of support leveraged from partners

R30 million

R23 million Limited financial commitments have been leveraged from stakeholders.

Engage more stakeholders in order to receive more financial support

Value of support received



Improve cost efficiencies

Allocating most of financial resources to core service delivery

Percentage of Seda budget allocated to core delivery

75% 79.01% The 2018/19 focus on core service delivery and more than 75% of the budget was allocated to service delivery.

None Budget Allocation

Chief Financial Officer

Improve Customer satisfaction

Measure customer satisfaction

Customer satisfaction index

4 on a scale of

1-5

4.7 92% of the surveyed clients were satisfied with the quality of Seda’s services.

None Customer Satisfaction Survey



Improve Stakeholder satisfaction

Measure stakeholder satisfaction

Stakeholder satisfaction index

3 on a scale of

1-5

3.3 More than 65% of engaged stakeholders indicated that they are satisfied with Seda services.

None Stakeholder Satisfaction Survey

Senior Manager: Stakeholder Management and P/R

Reduce the vacancy rate

Percentage of vacancy rate in funded positions

5% 4% Continuous follow-ups with Line managers and HRBPs done to accelerate the recruitment processes and staff requisitions completed as a position becomes vacant.

None Vacancy Report

Executive Manager: Corporate services


PROVINCIAL MANAGEMENT TEAM

Mr Siphiwo SogaEastern Cape

Mr Neville MaimaneNorth West

Mr Koenie SlabbertLimpopo

Mr Mashiba KgoleMpumalanga

Ms Kedisaletse WilliamsNorthern Cape


Mr Siphiwo SogaEastern Cape

Ms Jackie NtshingilaMr Colin LeshouMr Koenie Slabbert Mr Alex QuntaMs Kedisaletse WilliamsMr Neville Maimane Mr Mashiba KgoleMpumalangaNorth West Limpopo

Mr Cedric MnguniKwaZulu-NatalNorthern Cape Western Cape Gauteng Free State

Mr Alex QuntaWestern Cape

Mr Cedric MnguniKwaZulu-Natal

Mr Colin LeshouGauteng

Ms Jackie NtshingilaFree State


SUCCESS STORIES


LIMA TRADING CC T/A ALGOA CEMENT INDUSTRIESLOCATION Eastern Cape, Port-Elizabeth

SEDA BRANCH Nelson Mandela Bay

BUSINESS Manufacturing

“We are proud to have an accredited system”


Lima Trading CC, t/a Agloa Cement Industries (ACI) is a concrete products manufacturing enterprise which was founded in 1934 by the Kerbel family and is the oldest precast manufacturer in Port Elizabeth. In 2006, Mr John Harrington and Mr Chris Collett took over the business from the previous ownership and registered it as a Close Corporation. Mr Harington has 13 years of experience in the brick manufacturing industry and holds a BCom Accounting and Financial Management degree. Mr Collett holds a Sales and Marketing qualification with 13 years of experience in the manufacturing of cement products.

The business is operating from Markman Industrial Township close to Motherwell in Port Elizabeth. ACI’s main products are cement blocks, lintels, kerbs, storm water components and precast walls. The business operates from a 146 00 square metres facility which is owned by the business. They supply their products to a growing market in view of ongoing civil construction and real estate development projects in the Eastern Cape.

CHALLENGES

The business needed to have their product certified to National Standards which would enable them to access additional markets. They also needed assistance with implementation of Quality Management System (QMS) which, coupled with product certification would enable them to get the South African Bureau of Standards (SABS) mark on their product.

SEDA’S INTERVENTION

Client approached Seda in 2017 and linked up with Cassius Rivele, the Business Advisor (BA). The BA had a one-on-one interaction with the client with the purpose to gather information about the client and their challenges. After the interview with the client, the BA compiled a diagnostic assessment report for the business with list of recommendations. An in-house Quality Management system (QMS) training course was implemented for the client. Furthermore, a service provider was commissioned to develop and implement QMS for the business. Finally, the business was assisted with product testing South African National Standards (SANS-1215) for their blocks.

THE OUTCOME

The assistance from Seda created the following results for the business:

• The business passed the SABS product testing and certification process and their products conform to SANS-1215;

• Development and Implementation of QMS assisted the business to secure and maintain suppliers contracts with Build-it Warehouse and Builders Warehouse;

• The business now makes a turnover of R21 million from R14 million; and

• The number of employees increased from 31 to 75.

MAGESH LOGISTICS (PTY) LTDLOCATION Free State, Kroonstad

SEDA BRANCH Fezile Dabi

BUSINESS Service

“Seda has increased my knowledge in business”


Magesh Logistic is a 100 percent black owned, established transport operator, based in the Vaal are that aims to be one of the largest bus companies in Southern Africa. The company specialises in transporting private individuals through reliable management, offering both for-hire bus service and private trips. Magesh logistic value proposition is connecting businesses, industries and consumers through a cohesive supply chain. Through the use of advanced technology and responsible actions, Magesh Logistic delivers a dynamic and seamless value system that is responsive to each client’s needs, while taking into consideration those of the environment in which the business operates.

Top management compromises Magesh Ndaba, whose 15 years’ experience in the taxi and transport industry, coupled with leadership, entrepreneurial and project management skills, make him an astute, progressive leader who direct the business towards realising profitability, while ensuring sustainable business practices with limited business acumen. He is committed to deliver quality services to customers, while working alongside a dedicated team of drivers towards achieving value. They also service other entities such as Eskom and funeral companies.

CHALLENGES

One of the major challenges that was identified through the Critical Planning Exercise (CPE) was a high demand for their limited bus services. The client also lacked the business acumen and operated the business informally. The business also needed to brand the buses to improve the visibility.


The client was given business advise, coached on how to manage the business and was referred to a financial institution for access to finance to procure additional buses. The business was also assisted with branding for their fleet.

THE OUTCOME

• The business managed to increase the number of employees from 25 to 30 permanent employees;

• The business’s turnover improved from R12 million per annum to R14,8 million per annum;

• The business also managed to purchase 5 additional busses; and

• The business further managed to be exposed to the role players in the industry to improve the network through attending the Small Business Seminar that was held at the Gallagher Estate.

SOYLITE (PTY) LTDLOCATION Gauteng, Johannesburg

SEDA BRANCH Johannesburg


“We are extremely grateful for the assistance we have received from

SEDA, which has enabled us to grow at a faster rate and develop more

efficient production systems”.


SoyLites Pty (Ltd) is a registered trademark, the company was founded by Colin Skelton who partnered with Nicole Antonie to establish a company in 2008. SoyLitesTM currently manufactures a range of soy based candles and body products blended with essential oils. The business is currently based in Linden, a suburb located in the North Western area of Johannesburg.

CHALLENGES

Due to business growth and increasing demands, SoyLites TM continuously developed new products to diversify its’ product range but lacked capital for branding and packaging the new product lines.

Inadequate machinery lead to inefficiencies, less production which resulted in reduction of bulk orders and cutting back on production of certain periphery products range. Due to lack of capital to acquire advanced equipment, the business was previously using manual process to make products which also led to less stock holding and delayed delivery deadlines.


Upon visiting Seda Johannesburg Branch for enterprise development support, an assessment on company operations was conducted using the Assessment of Company Operations (ACO) to ascertain the extent and nature of growth challenges facing the business. The business diagnostic assessments revealed a need to assist with facilitating access to finance, to do branding, packaging and to address the cash flow constraints. As a result a Seda business advisor facilitated Seda Technology Transfer Fund (TTF) as well as branding and packaging for new product lines.

THE OUTCOME

• SoyLitesTM was able to secure funding to the value of R540 000 which was funded by Seda Technology Transfer Fund (TTF) that was facilitated through a Seda Branch. The funding was used to acquire mixers and printing equipment for labels;

• Due to newly introduced products and new packaging, the turnover improved from R2,7 million to R3,5 million;

• A 20% increase in revenue is also projected for the financial Year 2019/20 from securing a large order with Sorbet. SoyLitesTM will manage to fulfill the order within tight deadlines due to increased capacity from the new production equipment;

• The company introduced a new packaging for the adult Rainbow Rocks, this increased both the product offering and sales. International clients are particularly interested in this range;

• SoyLitesTM initially started with two (2) employees and due to increased capacity and fulfilling larger order quantities from Sorbet, the company has created five (5) additional jobs; and

• The label production machine received through TTF, has improved the delivery time since SoyLitesTM is able to print their own labels. The business is also able to offer custom printed labels to its customers (Sorbet) and have recently acquired additional clients who only require label printing.

NYANYA RESORT (PTY) LTD LOCATION KwaZulu-Natal, Richards Bay

SEDA BRANCH uThungulu Branch

BUSINESS Tourism

“The intervention has transformed and improved the image of the

business. There is proper image and the customers are now trusting the

brand and more are coming”


Nyanya Resort (Pty) Ltd is a 100% black owned tourism business that was established in 2013 and became fully operational in 2014 offering holiday accommodation, conference and events facility. The facility is made of thatched and white-washed traditional roundavel cottages built high on the natural platform overlooking the Umfolozi River and Ulundi Town (City of Heritage).

The owner, Mr Dumisani Dlamini, built the premises as a venue for convening the Dlamini clan. He later realised that the premises could be used to generate income and therefore converted the cottages into a resort and named it “Nyanya” as a sign of appreciation for what he considered to be a gift from his ancestors. To-date Nyanya Resort has 35 fully functional cottages including 6 presidential suites as well as 4 conference facilities that can cater for up to 100 guests. The business targets travel agencies, event coordinators, corporate companies, local municipalities/government departments and to a lesser extent, other small businesses and private individuals.

CHALLENGES

Nyanya was initially assisted with the first intervention during August 2015. An assessment was conducted and it was found that the business needed assistance with access to markets. At the time the business had done limited advertising and had not developed any effective marketing strategies. This led to low occupancy rate of approximately 5% against the norm of 40% for similar businesses operating in similar environments. There was limited exposure of the business to customers and no platform for customers to access information that could

be used to improve its base. The business also had very limited marketing material to put into effect the marketing strategy that had been adopted.


Seda recommended the marketing intervention in the form of e-marketing and the development of promotional marketing material. The following interventions were done; website, sign boards, company profile, business cards, gazebo, branded stationery, teardrop and pull-up banners. The client was also assisted in applying for a tourism star grading with the Tourism Grading Council of South Africa (TGCSA) in order for the establishment to tap into the national and international markets.

THE OUTCOME

The following was achieved by the business as a result of Seda interventions:

• Revenue increased from R268 994 to R6,6 million. This was as a result of rigorous marketing drive that resulted in the business securing work with the KZN’s Department of Education and Edtea;

• The number of employees increased from 3 to 27;

• The profit increased from R10 957 to R1,9 million; and

• A 3-Star grading was obtained from the TGCSA

MAMABHEKA TYRE AND FITMENT CENTRELOCATION Limpopo, Polokwane

SEDA BRANCH Capricorn

BUSINESS Services

“Keep up the good work”


Mamabheka Tyre and Fitment Center is situated at No.79 Nelson Mandela Drive in Superbia which is an industrial hub of the suburb of Nirvana in Polokwane. The company was established by three siblings with a combined industry experience of thirty years (30). As a certified member of the Retail Motor Industry Association (RMIA), the company sells tyres and offers fitment services which include wheel balancing, wheel alignment and tyre repairs. The business is fully equipped with functional and sophisticated workshop equipment with state-of-the-art technology that allows them to compete in the market.

The initial interaction with the potential business owners took place at the Seda Branch where they presented their business idea to the business advisor. The idea appeared to be feasible and they were advised to register a company, which they did within two months. The business started to operate immediately after the registration. Subsequent to this, a visit to the workshop was done to perform diagnostic assessment. One particularly concerning observation was that the machines were underutilised and also one of the directors even expressed her concern over too much machine idle time. A Critical Planning Exercise (CPE) tool was utilised and revealed that although the business was strategically positioned to attract clients, it was inconspicuous for potential clients to even recognise it as a tyre business.


Based on the assessment outcome it was found that the company desperately needed to create a tyre fitment image that would attract and encourage customers to stop and shop. The business was assisted with the development of signage and promotional material.

THE OUTCOME

• As a result of the intervention, the business managed to create a tyre fitment image;

• The business is visible and in a position to attract potential clients;

• Turnover increased from R0 to R2,1 million; and

• The employment increased from three (3) to eleven (11) employees.

RENABO PLASTIC MOULDERS AND FURNITURELOCATION Mpumalanga, Witbank

SEDA BRANCH Nkangala


“We would like to thank Seda for assisting with the business plan that assisted

in getting funding opportunities through SAB and TTF”


Renabo Plastics Moulders and Furniture is a business venture operating in Kwamhlanga, under Thembisile Hani Local Municipality. The business was registered as a private company in 2013 and has been operating on a small scale and struggling to get machinery to grow the business. The business manufactures office, school furniture and the refurbishment thereof.

CHALLENGES

The business did not have a business plan to access funding.


The Client was registered as seda client, the CPE assessment was conducted on the business to analyse the business viability. Upon assessment of the business, it was realised that there is a need to develop a business plan for the client to be able to access finance. Intervention for development of a business plan including facilitation of access to finance and to expand the business. The business was assisted with the Technology Transfer Fund (TTF) application.

THE OUTCOME

• TTF application for funding was approved to the amount of R600 000.00 to procure the industrial machinery;

• Turnover increased from R520 000 to R1 million per annum;

• Employment increased from 7 to 10 employees;

• Client got 24 months contract with NYDA national to supply office furniture; and

• Client recently got an order of R5,7 million to supply school furniture from department of Education Gauteng Province.

BATHLAKO TEMO PRIMARY COOPERATIVELOCATION North West, Brits

SEDA BRANCH Bojanala East

BUSINESS Primary Coorperative

“The client is very excited about its interaction with Seda and about Seda’s support and interventions. Seda will continue to support the cooperative with additional interventions as it continues to grow”.


Batlhako Temo Cooperative is a registered cooperative which started operating in 2010. It is a five (5) member cooperative, comprising four (4) males and one (1) female. The business produces various citrus products and has contracts with Juice Production companies. The cooperative acquired the farm through the Department of Rural Development’s land restitution program in 2010. The cooperative struggled to produce required quantities due to the fire which destroyed almost 10 000 orange trees. Members had to start all over by removing the destroyed trees and planted new orange trees to reinstate operations.

The period during the replantation was very difficult for the business due to lack of income being generated. It was at this stage that the cooperative made contact with Seda for appropriate support. Assessment was conducted, several challenges were identified and certain interventions were recommended for implementation to circumvent these challenges.

CHALLENGES

The challenges faced by the cooperative included lack of pre-requisite skills and experience by members to operate the farm effectively. We sought the services of Citrus Growers Association which assisted the members with the technical knowledge and skills of running a productive citrus farm. The business had inadequate knowledge and skills of running and operating a citrus farm. There was lack of business skills such as financial management, business planning administration and marketing, lack of a comprehensive and bankable business plan and lack of irrigation facilities. There was also under capitalisation of the business in terms of equipment and logistic items and lack of a defined market and marketing plan.


Seda facilitated a Technical training and mentorship by Citrus Growers Association. Costing and financial management training was facilitated and implemented. A bankable business plan for expansion purposes was developed to facilitate access to funding through the Department of Rural Development and the Department of Agriculture. A comprehensive marketing plan was developed and access to markets was facilitated, securing off-take agreements with Sir Juice and Tshwane Market.

THE OUTCOME

• Technical training and mentorship assisted the cooperative to acquire technical skills and knowledge to operate a successful citrus farm which resulted in a high production capacity;

• Costing and Financial management training equipped the cooperative with the knowledge in costing and financial management;

• The cooperative managed to access funding from the Department of Rural Development and Department of Agriculture, the funds were used to procure farming implements and equipment;

• The Cooperative secured an open ended contract with Sir Juice to the value of R1 million per annum;

• The business turnover increased from R600 000 to R2 million per annum; and

• The cooperative created ten (10) permanent job opportunities and a further twenty (20) employment for seasonal workers.

STAV TRADING & PROJECTS (PTY) LTD LOCATION North West, Rustenburg

SEDA BRANCH Bojanala West

BUSINESS Food Processing

“I’m delighted as SEDA has helped me to attract more clients and

business.”


StaV Trading and Projects cc was established by Mr. Victor Rampa, an enthusiastic and energetic middle aged man. The business manufactures, packages and sells Atchaar to retailers, wholesalers, shops, restaurants and consumers from small quantities to large quantities of up to 20 litre. Atchaar is a spicy condiment made out of unripe mango fruit, largely found in the far parts of the Limpopo Province. The mango is chopped, diced and mixed with oils, spices and preservatives. Spices flavours are found in steak, barbeque, peri-peri, natural, mild, hot and very hot chillies to give a palatable taste.

CHALLENGES

The business lacked packaging, products bar codes, access to markets, stock control management systems, and business management skills.

A Critical Planning Exercise (CPE) diagnostic tool was used to assess the business and do a gap analysis. This led to recommendations that the business must be assisted with stock controlling, access to markets, professional packaging, bar coding and labelling of the products in order to attract major retail stores.


A comprehensive packaging with bar-codes and labelling was developed. The client was mentored and coached. This enabled the client to arrange his stock, capture and display efficiently on store shelves and gondolas. This has made stock visible and accessible to customers, thus, improving sales.

THE OUTCOME

• The turnover has increased from R780 000.00 to R1,9 million per annum;

• The business was able to employ an additional two (2) employees; and

• Due to profitability that was realised, the business was able to replace two old vans with 2 x 1ton Bakkies, increasing its asset base from R250 000.00 to R641 838.00.

EZY MOK GENERAL TRADINGLOCATION Northern Cape, Kuruman

SEDA BRANCH John Taolo Gaetsewe (JTG)

BUSINESS Service

“The assistance and advice I received from Seda has made a huge difference in my business. I am grateful and confident that

with Seda interventions, my business will grow in leaps and bounds”.


What started as a micro informal business in Seven Miles, a village 10 kilometres away from the Kuruman CBD has flourished and is a household name in the horticulture sector throughout the Northern Cape Province. A gratified owner of Ezy Mok General Trading, Mr Mokhai, formalised his business in 2015. Prior to that, Mr Mokhai did odd gardening services for individuals. However, that improved when he officially ventured into the sector. Currently both the public and private institutions are pleased with gardening cultivation and management services rendered by Ezy Mok.

CHALLENGES

Access to markets hindered business growth. Mr Mokhai yearned to infiltrate both the public and corporate markets, however lack of knowledge on tendering processes exacerbated the challenge.


Mr Mokhai’s visit to Seda on 21 February 2018 was to solicit advisory services on how to grow and sustain his business. Assessment of Company Operations (ACO) was conducted in March 2018. Subsequent to that, it was recommended that the client be assisted with access to markets including an ongoing support on mentoring and coaching. Marketing material comprising signage and flyers were developed. In addition, Mr Mokhai was assisted with CSD registration as well as listing on corporate business databases.

THE OUTCOME

In response to the access to markets intervention:

• Signage and flyers were developed to promote the Ezy Mok services to the target market and further enhanced the professional outlook of the business;

• Following the registration process, the client has since been awarded a two (2) year contract by Adams Solar PV Project Two (PTY) Ltd for vegetation management services;

• The business turnover improved from R300 000.00 to R2,1 million; and

• The contract had a positive spin off on job creation, a total number of fifty-six (56) job opportunities were created thus increasing the headcount from five (5) to sixty-one (61) employees.

BOOMERANG MARKETING SOLUTIONS CCLOCATION Western Cape, Cape Town

SEDA BRANCH City of Cape Town

BUSINESS Call Centre

“Thank you Seda for assisting with the growth of our business.”


Boomerang Marketing is a Claremont based outsource call centre and an authorised financial service provider. The business was established in 2005 by Robert Joubert who started his career as a Telemarketer in 1992. He grew up in the field and became a Sales Campaign Manager until he implemented call centre solutions and started call centre campaigns for a number of leading brands in South Africa. The business offers customer acquisitions, sales and customer retention programmes, and they are happy to have secured fixed contracts from leading brands.

CHALLENGES

The business needed an implementation of Quality Management Systems (QMS) to attract more clients.


The client approached Seda Branch for assistance where she met with one of the Business Advisors who conducted a diagnostic assessment. A Critical Planning Exercise (CPE) was done which is a planning tool that prepared financial projections for twelve months or more and simulates various “what if” scenarios. It assisted the client to make accurate, realistic financial predictions and a plan to significantly contribute to the viability of the business. Seda also assisted with certification of Quality Management System ISO 9001: 2015.

THE OUTCOME

• Turnover increased from R6,6 million to R11,3million; and

• Employment increased from 74 to 131 employees.

EXCELLERE FOODS LOCATION Gauteng, Pretoria

SEDA INCUBATOR BICSA

BUSINESS Hospitality

“SEDA Branch Manager is keen to always meet and advise on the way forward and on how to improve my

profit margin”.


Excellere Foods was registered in 2004 with Ntediseng Rebecca Modise as the only director.

The owner and director is a qualified Chef and ran the business as a restaurant and coffee shop. The business experienced serious financial challenges and the coffee shop was closed down. The client operated from home in a security complex in Pretoria East.

CHALLENGES

The business had challenges with outstanding VAT returns and was not able to obtain a TAX clearance certificate. The client was not able to apply for a health certificate as she was operating from a premises that was zoned for residential purposes.


BICSA assisted the business with TAX compliance and getting the TAX clearance certificate. The food technologist assisted with product specification and nutritional values of the frozen product and a product presentation to Evergreens. The products were manufactured on site to enable the client to use the BICSA health certification.

THE OUTCOME

• BICSA acquired production space and Excellere is operating from the production space on a permanent basis since January 2019;

• The business acquired a contract with an international organisation, facilitated through long term contracts with corporate clients;

• The increase in turnover is R353 530.70 to R1,6 million;

• The business created three (3) job opportunities; and

• Seda assisted the business to facilitate access to finance from the Credit Insurance Export company.

AMINACHEM LOCATION Eastern Cape, Mthata

SEDA UNIT Technology Transfer Fund

BUSINESS Chemical Manufacturing

“SEDA Branch Manager is keen to always meet and advise on the way forward and on how to improve my

profit margin”.


Aminachem Pty Ltd is a small business specialising in manufacturing a range of over 30 industrial and domestic detergents. The business is based in Mthatha in the Eastern Cape. Amina Chemicals started its operations in June 2013. To date, the company continues to strive in a tough economic climate, employing eighteen (18) permanent staff members.

CHALLENGES

Lack of relevant technology


The company needed assistance with Technology Transfer in the form of machinery and equipment for efficient operational processes, increased production capacity as well as enhancing the quality of the product. Seda assisted the company with the following:

• Mixing tanks (Cold Blends Baffles);

• Geared motor and shafts;

• Decanting stations (Powder and Liquids);

• Air driven pumps;

• PH meter and Heat Measurig Equipment (Hanna); and

• Flow Meter

THE OUTCOME

• Significant increase in annual turnover from R2,6 million to R7,6 million was realised;

• More efficient process and enhanced product quality was achieved;

• With the introduction of cutting edge technology, the business continued to perform extremely well and managed to open an outlet shop;

• Jobs increased from 5 to 18 people; and

• Technology Transfer in the form of Equipment and Machinery.

SEDICLEAN HYGIENE SOLUTIONS LOCATION Free State, Phuthaditjaba

SEDA UNIT Quality and Standards

BUSINESS Manufacture and Supply

“Business mentorship and support received from SEDA has helped us to ensure that our motto is a reality as the products and services we offer can meet or even

exceed customer requirements”


Sedibeng Sa Maluti Healthcare & Cleaning Solutions started in 2007. At that time, they were not manufacturing, they were sourcing readily manufactured products from wholesalers and reselling to their customers. In late 2014, the owner invested in the purchase of relevant manufacturing equipment and did some research about the nature of products that are required in the market and started positioning the organisation to enter the market through manufacturing of specific products that will meet customer requirements.

CHALLENGES

Initially it was difficult for the business to access the markets. There was a high customer expectation on quality products. There were many customer complaints and as a result increased product returns. The business needed to work hard to improve on their systems and processes to meet high customer expectations. Some of the customers had demanded that the busines be ISO 9001 certified before they could do business with it.


The organisation then approached Seda STP to assist in the improvement of its business processes and systems in order to meet customer requirements. STP got involved and assisted with the implementation of ISO 9001:2015 Quality Management System. The implemented Quality Management System was later certified by an independent certification body in 2018.

THE OUTCOME

• The results of these interventions were excellent. The customer complaints and customer returns have been reduced to almost zero. There has been a noticeable improvement in the overall systems of the business. The implemented systems made it easy for the business to have more reworks, minimal quality problems and reduced scrap/waste and customer returns;

• Production systems are running smoothly and HR systems implemented have ensured that the


organisational structure is functioning well and that roles and responsibilities have been delegated properly to ensure smooth running of all operations;

• Currently, the production volumes are now estimated at about 40 000 litres of product per month and are increasing, which is a huge achievement, considering that the organisation only started manufacturing in late 2014;

• The organisation is also in the process of testing and certifying food safe cleaning detergents with SABS. Customers require that these detergents be tested and approved by SABS as being safe for use in the food environment;

• Due to these interventions, the organisation is now recognised as one of the top performing SMMEs and has been recognized for this by the Sasol Incubator (private incubator);

• The organisation is in the process of getting further support from Sasol Incubation for purchasing of further equipment to increase production volumes to meet customer demand. SediClean is now the only 100% Black owned SMME supported by Seda in the Free State that is ISO 9001:2015 certified;

• The Sasol Incubator would not have considered investing in this business if the performance of the organisation was not satisfactory. The production volumes have increased by 5% since the intervention;

• The turnover of the business has increased by 7% since the intervention provided by Seda;

• The organisation has employed a chemistry graduate/intern to focus on sampling, quality control testing of products and quality improvement initiatives. This has proven to be very critical in the improvement of the quality of products that are delivered to customers; and

• Customer satisfaction has also improved significantly. QMS implementation is based on ISO 9001:2015 standard and the certification of the implemented QMS by an independent certification body.


GOVERNANCEPART C


Member: Mr Thakhani Makhuvha

Strategy and Organisational Performance Committee

Member: Audit and Risk Committee

Ms Anjue Hirachund Member: Strategy and Organisational

Performance CommitteeMember: Human Resources and

Remuneration Committee Member: Audit and Risk Committee

Mr Mojalefa MohotoMember: Strategy and Organisational

Performance Committee

Dr Marius VenterDeputy Chairperson: Board

Member: Human Resources and Remuneration Committee

Dr Ivor ZwaneBoardChairperson:

Member: Strategy and Organisational Performance Committee

Ms Mandisa Tshikwatamba CEO (ex officio)

Mr Dennis ThabanengChairperson: Strategy and Organisational



Ms Precious LugayeniChairperson: Human Resources and

Remuneration CommitteeMember: Strategy and Organisational


Chairperson:

Mr Motshwanedi Joe Lesejane

Audit and Risk CommitteeStanding Invitee

Ms Zanele Monnakgotla Member: Strategy and Organisational



BOARD MEMBERS TERM ENDING 31 MAY 2019


Member: Mr Thakhani Makhuvha


Member: Audit and Risk Committee

Ms Anjue Hirachund Member: Strategy and Organisational



Mr Mojalefa MohotoMember: Strategy and Organisational


Dr Marius VenterDeputy Chairperson: Board

Member: Human Resources and Remuneration Committee

Dr Ivor ZwaneBoardChairperson:

Member: Strategy and Organisational Performance Committee

Ms Mandisa Tshikwatamba CEO (ex officio)

Mr Dennis ThabanengChairperson: Strategy and Organisational



Ms Precious LugayeniChairperson: Human Resources and

Remuneration CommitteeMember: Strategy and Organisational


Chairperson:

Mr Motshwanedi Joe Lesejane

Audit and Risk CommitteeStanding Invitee

Ms Zanele Monnakgotla Member: Strategy and Organisational





INTRODUCTION

Corporate governance embodies processes and systems by which public entities are directed, controlled and held to account. In addition to legislative requirements based on a public entity’s enabling legislation and the Companies Act, corporate governance with regard to public entities is applied through the prescripts of the Public Finance Management Act (PFMA) and run in tandem with the principles contained in the King Reports on Corporate Governance. Parliament, the Executive and the Boards of the public entity are responsible for corporate governance. Seda is in the process of reviewing its corporate governance structures and processes to be aligned with the newly adopted King IV™ Code on Corporate Governance.

PORTFOLIO COMMITTEES

Parliament exercises its oversight role of Seda through evaluating the performance of the public entity by interrogating their annual financial statements and other relevant documents which have to be tabled as well as any other documents tabled from time to time. The Standing Committee on Public Accounts (SCOPA) reviews the annual financial statements and the audit reports of Seda’s external auditor. The Portfolio Committee exercises oversight over the service delivery performance of Seda and as such, reviews the non-financial information contained in the annual reports of Seda and is concerned with service delivery and enhancing economic growth.

EXECUTIVE AUTHORITY

The Minister of Small Business Development is the Executive Authority and oversight rests by and large on the prescripts of the PFMA. The PFMA governs authority to the Executive Authority for oversight powers. The National Small Enterprise Act provides that the Executive Authority can appoint and dismiss Board Members including the Chairperson, Vice-Chairperson and Non-executive Board members. The Executive Authority must also ensure that the appropriate mix of executive and non-executive directors is appointed and that directors have the necessary skills to guide Seda. Seda submits the following reports to the Executive Authority on an annual basis: strategic and annual performance plans for approval together with budgets to complement Seda’s strategic plans. During the 2017/18 financial year, Seda submitted four quarterly reports and an annual performance report 2017/18 as required by the Executive Authority.

THE ACCOUNTING AUTHORITY/ THE BOARD

INTRODUCTION

The Board of Directors are the Accounting Authority of Seda. The Board constitutes a fundamental base for the application of corporate governance principles in Seda. Seda is headed by and controlled by an effective and efficient Board, the majority of the members are independent and non-executive directors representing the necessary skills to strategically guide Seda. Non-executive members ensure independence and objectivity in decision-making.


The Board has an absolute responsibility for the performance of the public entity and is fully accountable for such performance. The Board gives strategic direction to the public entity.

The role of the Board is as follows:

• It holds absolute responsibility for the performance of the public entity;

• It retains full and effective control over the public entity;

• It has to ensure that the public entity complies with applicable laws, regulations and government policy;

• It has unrestricted access to information of the public entity;

• It formulates, monitors, reviews corporate strategy, major plans of action, risk policy, annual budgets and business plans;

• It ensures that the shareholder’s performance objectives are achieved;

• It manages potential conflicts of interest;

• It develops a clear definition of levels of materiality

• The Board must attend annual meetings;

• It ensures financial statements are prepared;

• The Board must appraise the performance of the Chairperson;

• It must ensure effective Board induction;

Must maintain integrity, responsibility and accountability;

• The Board annually reviews the Delegation of Authority

Policy, which defines the delegation of powers, duties and functions of Management.

BOARD CHARTER

In keeping with the recommendations of the King IV™ Report, the Board is governed by a Board Charter, setting out the roles, structures and functions of the Board and its various Subcommittees. The Board Charter is reviewed annually to ensure alignment with best practice and to test compliance. Furthermore, the Charter confirms:

• The board’s responsibility for the adoption of strategic plans;

• Monitoring of operational performance and management;

• Determination of policy processes to ensure the integrity of the public entity risk management and internal controls;

• Communication policy, orientation and evaluation;

• A Self Evaluation of the Board and Board Committees’ took place during the year under review and action plans were put in place to address areas requiring improvement.

COMPOSITION OF THE BOARD

The Board consists of 9 Non-executive Board members, including the Chief Executive Officer (CEO) as an executive member. The Minister appoints the CEO on such terms and conditions as may be determined by the Board and


when it is necessary to appoint a member to the Board, the Minister, through the media and by notice in the Gazette, invites nominations of persons as candidates for such appointment. The Executive Management team is appointed by the CEO after consultation with the Board.

Executive Management is employed on the basis of a fixed term contract. The Board is diverse in respect of origin,

gender, race and education. Together, the members bring a wealth of experience and expertise to Seda. 44 % of the Board members are women, while 89% are from historically disadvantaged racial groups. The Board is required to meet as often as the business of Seda requires, but at least six times a year.

NAME

DESIGNATION (IN TERMS OF THE PUBLIC

ENTITY BOARD STRUCTURE)

DATE APPOINTED

DATE RESIGNED QUALIFICATION AREA OF EXPERTISE

BOARD DIRECTORSHIPS

OTHER COMMITTEES OR

TASK TEAMS

NO OF MEETINGS ATTENDED

Dr Mzwandile Ivor Zwane

Board Chairperson

2014 – 2017 31 May 2019 PhD ChemistryWits University

M S ChemistryUniversity of Notre Dame(USA)

Bsc (Hons) ChemistryBsc Computer Science and ChemistryUniversity of Fort Hare

Business strategy and organisational managementCorporate governanceCorporate CommunicationSocial entrepreneurshipMentoring and coaching

Board Director

BOAS Trust

Society of Cosmetic Chemists SA

Strategy and Organisational Performance Comm.

Dr Marius Venter Board Deputy Chairperson

2013 –2017

31 May 2019 D Com EconomicsM Com EconomicsB Com (Hons) EconomicsB Com LawRand Afrikaans University

Local Economic DevelopmentStrategic planningEntrepreneurship

Economic Development

Human Resources and Remuneration Comm.

Audit and Risk Comm.

Mr Dennis Thabaneng

Member 2014 – 2017 31 May 2019 MSC ManagementArthur D Little, Boston, USA

B Com (Hons) BusinessEconomicsB Com Business EconomicsUniversity of Zululand

ND: Medical TechnologyPathology Laboratory Services/King Edward Viii Hospital, Durban

Infrastructure development and fundingEntrepreneurial developmentBusiness managementBusiness strategyCorporate governance


NAME



DATE APPOINTED


BOARD DIRECTORSHIPS

OTHER COMMITTEES OR

TASK TEAMS


Ms Precious Lugayeni

Member 2014 – 2017 31 May 2019 M Ed EconomicsEducationB Ed (Cum Laude)B A (First Class)University of Zululand

Higher DiplomaEducation (Post Graduate)University of Natal

Education and trainingEconomic developmentTrade and investmentOrganisational strategy

Smart Exchange Chairperson - Human Resources and Remuneration Comm

Strategy and Organisational Performance Comm

Ms Zanele Monnakgotla

Member 2015 – 2018 31 May 2019 Masters in FinanceB Com Degree and LLMWITS University

Project Finance, Structured Finance, Commercial Law, Innovation and Strategy

Sasol Inzalo Public

South African Bureau of Standards

National Advisory Council on Innovation

CIPC



Audit and Risk

Ms Anjue Hirachund

Member 2015 – 2018 31 May 2019 MBAWITS University

MDPUNISA

Dip Quality ManagementDiploma Production ManagementDamelin

ND:Chemical EngineeringTechnikon Natal

Strategic LeadershipCorporate GovernanceBusiness EthicsStrategy and OperationsHuman Resources

Board Member: Ports Regulator of South Africa

REMCO Chair: Ports Regulator of South Africa


Strategy and Organisational

Performance Comm.

Audit and Risk Comm.

Mr Thakhani Makhuvha

Member 2013 – till end of employment as Sefa CEO

31 May 2019 Masters DegreeFinancial ManagementUniversity of Johannesburg

B Compt HonsUNISAB Com AccountingUniversity of Venda

Leadership Development ProgrammeGIBS

Corporate financeRisk managementCredit managementCorporate governanceStrategic planningBusiness continuitySmall business developmentPrivate equityInvestment banking

Ex-Officio: Sefa

Director: Business Partners Limited

Strategy and Organisational Performance Comm

Audit and Risk Comm


NAME



DATE APPOINTED


BOARD DIRECTORSHIPS

OTHER COMMITTEES OR

TASK TEAMS


Mr Mojalefa Mohoto

DSBD Representative

2008 - date 31 May 2019 MA in Public and Development Management

Postgrad Diploma in Development Management

WITS University

BA Degree

VISTA University

Enterprise Development Policy co-ordination

Non-executive Director: SefaNon-Executive Director: FASA

Committee Member: South African Chamber of Commerce and Industry small business committee

Board member: Cooperatives Incentive Scheme

Panel member: Technology for Women in Business (TWIB)


Mr Johannes Lesejane

Invitee 2013 – 2017 31 May 2019 CA (SA)

Fellow Chartered

Management Accountant (UK)

B Compt (Hons) Accounting

B Com Accounting

Certificate in Control Self-Assessment (CCSA)

Internal and external auditingEnterprise risk managementFinancial accountingManagement accountingTaxationMergers and acquisitionBusiness continuity

Export Credit Insurance Corporation Ltd (ECIC)

Attorneys Indemnity Insurance Fund (NPC)

Independent Regulatory Board of Auditors

Audit and Risk Committee

Ms Mandisa Tshikwatamba

Seda CEO 2016 – date 31 May 2019 B AdminBA Programme: Finance and Investment Management

Post Grad Programme. Marketing Management; BA (Hons) Development Studies UNISA MBARegent Business School

Public Administration,

Corporate Governance and Risk Management,

Enterprise Development and Policy Coordination

Trustee: Tshikwatamba Family Trust

Ex-Officio


COMMITTEES

The Board has several committees to assist in the discharge of its duties as set out below, though retaining its responsibility in relation to the delegated tasks. Each committee operates within defined terms of reference and is chaired by a non-executive board member. Committee members were nominated by the Board based on their respective qualifications and expertise.

HUMAN RESOURCES AND REMUNERATION COMMITTEE

This committee is chaired by a non-executive Board member and comprises non-executive Board members appointed by the Board. This committee, which sits at least every quarter, is responsible for formulating the human resources, and social and ethical strategy and policies. During the year under review this committee was tasked with the additional responsibilities for social and ethics matters.

COMMITTEE

NO. OF MEETINGS

HELDNO. OF

MEMBERS NAMES OF MEMBERS

Human Resources and Remuneration Committee

6 7 Ms Precious Lugayeni (Chairperson)Mr Dennis ThabanengMr Thakhani MakhuvhaDr Marius VenterMs Zanele MonnakgotlaMs Anjue HirachundMs Mandisa Tshikwatamba (CEO)

AUDIT AND RISK COMMITTEE

The Audit and Risk Committee consists of non-executive Board members appointed by the Board. The committee meets at least every quarter in a year and is chaired by an independent non-executive member who is not the chairperson nor a member of the Board. The external and internal auditors have unrestricted access to the committee.

Appropriate Executive and Senior Managers attend these meetings as standing invitees. The committee has agreed terms of reference approved by the Board. The report of the Audit and Risk Committee is included in the annual financial statements. The committee reviews the effectiveness of the organisation’s internal control systems and its risk management framework. The organisation’s top 10 strategic risks are identified and its responses thereto reviewed regularly by the Committee.

COMMITTEE

NO. OF MEETINGS

HELDNO. OF


Audit and Risk Committee

5 7 Mr Joe Lesejane (Chairperson)Dr Marius Venter Mr Dennis Thabaneng Mr Koos Roelofse (dti representative)Mr Thakhani MakhuvhaMs Anjue Hirachund Ms Zanele Monnakgotla

STRATEGY AND ORGANISATIONAL PERFORMANCE COMMITTEE

The committee plays an important role in monitoring and evaluating compliance with strategic objectives and evaluates achievement of targets set out in the strategy by monitoring project reports. The committee is chaired by an independent non-executive Board member and comprises non-executive Board members appointed by the Board.

COMMITTEE

NO. OF MEETINGS

HELDNO. OF



7 8 Mr Dennis Thabaneng (Chairperson)Dr Ivor Zwane Mr Thakhani Makhuvha Mr Mojalefa MohotoMS Precious Lugayeni Ms Anjue Hirachund Ms Zanele Monnakgotla Ms Mandisa Tshikwatamba (CEO)


REMUNERATION OF BOARD MEMBERS

Non-Executive Directors remuneration is based on meetings attendance, and other ad hoc non-meeting duties performed on behalf of Seda, at the rate which has been approved by the Shareholder, taking cognisance of National Treasury (NT) guidelines, which is annually increased.

No Name

Directors fees and Preperation

timeSubsistence allowance Travelling Salary Allowances

Performance bonus

Re- imbursements

TOTALR

1 Hirachund, A 142 980 256 16 350 - - - 18 899 178 485

2 Lugayeni, PF 168 434 1 408 74 430 - - - 12 883 257 155

3 Makhuvha, TR 13 640 - 930 - - - 960 15 530

4 Mohoto, M * - - - - - - - -

5 Monnakgotla, Z 111 690 384 16 414 - - - 14 415 142 903

6 Thabaneng, DMN 184 021 640 24 564 - - - 18 468 227 693

7 Tshikwatamba, NM - 2 688 22 428 2 569 760 60 000 303 497 - 2 958 373

8 Venter, M 124 640 - 4 720 - - - 1 027 130 387

9 Zwane, I 263 021 2 414 61 182 - - - 28 070 354 687

1 008 426 7 790 221 018 2 569 760 60 000 303 497 94 722 4 265 213

Board Sub-committees Members: 1 April 2018 to 31 March 2019

No NameConsultant

FeesSubsistence allowance Travelling Salary Allowances

Performance bonus

Re- imbursements

TOTALR

10 Lesejane, MJ 85 270 256 7 020 - - - 3 636 96 182

85 270 256 7 020 - - - 3 636 96 182

TOTAL 1 093 696 8 046 228 038 2 569 760 60 000 303 497 98 358 4 361 395

MINIMISING CONFLICT OF INTEREST

All Seda employees are required to declare external interests annually. Seda also has a Gift and Hospitality Policy regulating gifts, donations and sponsorship to prevent fraud and corruption. Board Members are required to declare their financial interests annually and at each meeting.

CODE OF CONDUCT

Seda’s Board members, management and employees recognise the need for the highest standards of behaviour and business ethics. All directors and employees are expected to comply with legislation and the highest standards of propriety and to comply with Seda’s code of ethics. Seda is committed to compliance and good corporate governance.


HEALTH, SAFETY AND ENVIRONMENTAL ISSUES

The health and safety of our employees is important to Seda. The organisation has made strides to ensure that we have a structure in place to look for the safety of employees. In each province and in the national office there are health and safety representatives who have been trained in providing advise and responding to safety issues. Every 6 months different Seda offices perform a safety and evacuation drill to ensure that employees are aware of the procedure to follow in the case of emergencies.

COMPANY SECRETARY

The Legal and Corporate Governance unit provides Board Secretarial services and provides Board members with guidance and advice on good governance, ethics, as well as on the nature and extent of their duties and responsibilities and how such duties should be properly discharged. Each of the Board members has unrestricted access to the advice and services of the unit and to organisational information.

SOCIAL RESPONSIBILITY

Seda supported the SABC Disability Summit and Expo on 18 April 2018 at the Renaissance Room in Auckland Park, Johannesburg. The event created a platform to connect SMME’s living with disabilities and the corporate supply chains, this enabled the creation of business networks for future partnerships and collaboration.

Corporate Communications and Marketing supported Cell C Take a Girl Child to Work programme at National Office, Gauteng, North West, Limpopo, Mpumalanga, Free

State and KwaZulu-Natal. A total of R30 000 was invested in the programme to promote gender equality, women empowerment and creating a platform of exposure for female learners to engage with women in leadership positions.

RISK MANAGEMENT

The Seda Board has promoted a ‘risk-matured or risk-intelligent’ culture and set the risk management tone through the approval of the Risk Management Policy, Strategy and Framework. The Board, in discharging its risk management responsibilities, is supported by the Audit and Risk Committee (ARC), whose main responsibilities are to ensure that Seda has implemented an effective Risk Management Policy and Risk Management Plan that will enhance the Seda’s ability to achieve its strategic objectives.

An annual risk assessment was conducted in respect of the strategic and operational risks and was aligned to the strategic and operational planning processes of Seda. The risks are monitored on an on-going basis in relation to risk mitigation strategies or plans, relevance and adequacy of existing controls, the identification of emerging key and significant risks. Risk management and the tabling of the strategic risk register of the organisation is a standing item on the agenda of the Executive Committee (EXCO) and the Audit and Risk Committee.

During 2018/19 Seda managed its key risks adequately in the light of the issues and challenges facing the SMME sector. During 2018/19 financial year, Seda implemented 83% of Strategic Risk Action plans as compared to 71% during 2017/18 financial year. Seda has showed signs of improvements in embedding risk management culture and systems within the operational and strategic levels of the organisation.


Risk Appetite Framework (which includes a risk-bearing capacity) has been developed and forms part of the risk-reporting and monitoring philosophy. Risk appetite sets parameters which guides Seda the amount of risk (upside and downside) the entity should accept in alignment with strategic objectives.

COMPLIANCE WITH LAWS AND REGULATIONS

Seda recognizes the essential role that compliance with applicable legal and regulatory requirements plays in the governance and sustainability of its business. The Compliance management function provides support to the business relating to regulatory reporting obligations. The function further provides regulatory training to employees and management relating to applicable legislation and changes to legislation.

During the 2018/19 financial year compliance awareness sessions were held in an effort to inculcate the compliance culture across the Seda network. The compliance universe was reviewed in collaboration with business units. A total of 10 (ten) acts were identified for compliance controls, capturing, monitoring and reporting thereon.

FRAUD AND CORRUPTION

Seda has an approved Anti-Fraud and Corruption Prevention Policy and the fraud statement for deterring and combating unethical conduct and minimising fraudulent activities within the operational activities of the organisation.

WHISTLE-BLOWING

All employees and management have been trained on anti-fraud and corruption during the year to entrench a culture and a responsibility to report wrongdoing or misconduct. Seda has established a partnership and co-operative relationship with the office of the Public Service Commission (PSC) in the fight against fraud and corruption. Employees are encouraged to be vigilant and to report any incidents of fraud and corruption to the National Anti-Corruption Hotline which is administered by the PSC.

INVESTIGATION PROCESS

During 2018/19 financial year, twenty-three cases of alleged fraud and other irregularities were reported and investigated. The investigation reports with findings and recommendations for corrective and remedial actions were issued to management. There has been an increase in the number of procurement irregularities as compared to previous years, and management has taken a stance to take action against officials who do not comply with Supply Chain Management (SCM) policies and also embarked on creating awareness and training all officials involved in procurement.


BOARD MEMBERS TERM STARTING 1 JUNE 2019

Mr Mbulelo Sogoni Chairperson

Dr Matshediso Joy Ndlovu

Mr Charl de Kock

Princess Beatrice Tsakani Nkambule

Ms Nomso Faith Kana

Ms Suzan Mary-Ann Badanile Nyakale née

Nyalunga

Mr Jim Matsho

Mr Mduduzi Sibeko

Advocate Derick J Block

Advocate Mthokozizi Xulu


AUDIT AND RISK COMMITTEE REPORT

The Audit and Risk Committee is pleased to present the report for the financial year ended 31 March 2019.

AUDIT COMMITTEE RESPONSIBILITY

The Audit Committee reports that it has complied with its responsibilities arising from Section 51 (1) (a) (ii) of the Public Finance Management Act and Treasury Regulation 27.1. The Audit Committee also reports that it has adopted appropriate formal terms of reference as its Audit Committee Charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein, except that we have not reviewed changes in accounting policies and practices.

THE EFFECTIVENESS OF INTERNAL CONTROL

Our review of the findings of the Internal Audit work, which was based on the risk assessments conducted in Seda revealed certain weaknesses, which were then raised with the Seda Management and subsequently reported to the Audit and Risk Committee.

The following internal audit work was completed during the year under review:

• Review of Draft Annual Financial Statements;

• IT – E – service Self Help Portal Review;

• Enterprise Risk Management Review;

• HR –Employee Benefits and Statutory Payments Review;

• IMEDP Review;

• Project Management Review;

• Supply Chain Management Review;

• Audit of Performance Information;

• Draft 2019/20 Annual Performance Plan Review;

• SEOBI Financial Management Review;

• Stp Incubator Governance Review;

• Financial Discipline Review – Asset Management; and

• Ongoing follow up reviews on the status of implementation for the agreed action plans on open findings.

Overall, from the majority of the audits completed, the Committee noted that the control environment is adequate and partially effective to provide the assurance to the Seda Board and its stakeholders on the fulfilment of the Committee’s role.

IN-YEAR MANAGEMENT AND MONTHLY/QUARTERLY REPORT

The public entity has been reporting monthly and quarterly to the Treasury as is required by the PFMA.

EVALUATION OF FINANCIAL STATEMENTS

We have reviewed the annual financial statements prepared by the public entity.

AUDITOR’S REPORT

We have reviewed the entity’s implementation plan for audit issues raised in the prior year and we are satisfied


that these matters have been adequately resolved except for the following:-

The disciplinary action for a former official involved in a matter relating to irregular expenditure was referred to the relevant department in which the official is still an employee.

The Audit Committee concurs and accepts the conclusions of the Auditor-General on the annual financial statements, as well as the Annual Integrated Report, and is of the opinion that the audited annual financial statements and the Annual Integrated Report be accepted and read together with the report of the Auditor-General.

The Audit Committee recommended the audited annual financial statements to the Seda Board, for adoption, as well as the AGSA Management report for noting at its meeting convened on the 30th July 2019.

Mr M LesejaneChairperson of the Audit CommitteeDate: 31 July 2019


HUMAN RESOURCE MANAGEMENT

PART D


“The greatest asset of a company is its people.” - Jorge Paulo Lemann

The success of Seda’s 2018/2019 Strategy depends in part on Seda’s ability to retain, motivate, develop, and continue to attract employees with the skills and experience to help the organisation to master its challenges,

achieve its goals to deliver on its mandate.

This Human Resources Report provides a snap shot of some of the employee metrics and how Seda’s Human Resources strategic priorities are translated into action. It touches on examples of what was achieved in the quarter with regards to HR Policy Development, Skills Development and Training, Employment Equity, Employee Relations and overall HR Performance against set Strategic Targets.

1. HR POLICY DEVELOPMENT

The organisation continues to ensure that all HR related policies are up to date and in line with relevant legislation. The following policies were reviewed and approved by the Board:

1.1 Relocation Policy;

1.2 Recruitment Policy;

1.3 Performance Management and Development Policy; and

1.4 Employment Equity Policy.


2. SKILLS DEVELOPMENT AND TRAINING

Training and Development is a strategic indicator within the Annual Performance Plan (APP). The training and development budget, utilised in the financial year for the enhancement of skills, knowledge and competencies of all employees, amounts to R 1 027 355 which translates to 30.1% of the workforce trained during the financial year.

3. EMPLOYMENT EQUITY

In accordance with the Employment Equity Act 55 of 1998, as amended, organisations are required to ensure compliance. Amongst other requirements, the organisation must ensure the establishment of Employment Equity Committees and the development of Employment Equity plan(s) that outline numerical set targets. Employment Equity Committees have been established and trained in all nine (9) provinces as well as at National office.

The Employment Equity Plans for all 9 provinces and the National Office have been developed.

The Annual Employment Equity report was submitted to the Department of Labour on the 21st December 2018 and confirmation of submission issued.

4. HR PERFORMANCE AGAINST SET STRATEGIC TARGETS

Employees have conceptual knowledge and understanding of the role and purpose of their jobs in relation to the organisation’s strategy, whilst having an explicit understanding of their own performance objectives and targets.

In this regard, each year following review of the organisational strategy, key performance indicators and targets are developed within the division to develop divisional plans, indicators and targets, which are then cascaded further to individuals, who develop individual performance agreements with line management.

Furthermore, during the 4th quarter, individual performance assessments were conducted. These assessments were conducted against the signed performance agreements.

FUTURE PLANS

Seda recognises and believes that its people are an essential driver of performance and hold key to its ability to operate efficiently. To this end, the focus of HR Function continues to position itself as a strategic business partner to the rest of the organisation.

The identified strategic key deliverables will include:

• Work-study to support organisational development based on the organisational strategic imperatives ;

• Developing a succession planning policy;

• Strengthening the development of Business Advisory capacity; and

• Exploring the designing of a Tier Three of the Balance Score-card.


SEDA HUMAN RESOURCES REPORT 2018/2019

STAFF COMPOSITION AND EMPLOYMENT EQUITY

Table1: Existing Staff List by business unit as at 31 March 2019

Name of Division/Province Total Number of Staff as at 31 March 2019

Contract Staff Number of Vacancies as at 31 March 2019

Total Approved Posts

% Vacancy Rate as % of Total Posts 31 March 2019

Office of the Chief Executive Officer 31 0 1 32 3,13%

Strategy and Information Management 22 0 3 25 12,00%

Corporate Service 45 0 1 46 2,17%

Cooperatives Development Agency (CDA) 20 0 0 22 0,00%

Enterprise Development 32 5 0 32 0,00%

Finance 27 0 1 28 3,57%

Seda Technology Programme 30 4 1 31 3,23%

TOTAL NATIONAL OFFICE 207 9 7 214 0,24

Eastern Cape 54 3 2 56 3,57%

Free State 57 0 1 58 1,72%

Gauteng 28 14 1 29 3,45%

KwaZulu-Natal 61 0 6 67 8,96%

Limpopo 49 0 2 51 3,92%

Mpumalanga 51 0 0 51 0,00%

North West 47 0 4 51 7,84%

Northern Cape 46 3 5 51 9,80%

Western Cape 73 0 3 76 3,95%

TOTAL PROVINCIAL 466 20 24 490 4,90%

GRAND TOTAL 673 29 31 704 4,40%

Table 1 above indicates the existing staff as per the payroll data as at 31 March 2019 there were six hundred and seventy-three active employees (673).


Table 2: Existing Staff by Occupational Categories as at 31 March 2019

Occupational Category

Males Females Foreign National Total

African Coloured Indian White Total African Coloured Indian White Total Male Female

Top Management 1 0 0 0 1 4 0 0 0 4 0 0 5

Senior Management 9 4 0 4 17 5 1 0 2 8 0 0 25

Junior Management 40 5 1 2 48 29 2 1 4 36 0 0 84

Specialist 87 7 3 6 103 66 3 2 7 78 0 0 181

Skilled Workers 76 7 1 3 87 88 14 2 4 110 0 2 197

Semi-Skilled Workers 15 1 0 0 16 145 14 0 5 165 0 1 181

Grand-Total 228 24 5 15 272 337 34 5 22 398 0 3 673

Employees with disabilities’

1 0 1 0 2 8 1 0 0 9 0 0 11

Percentage Total 33,88% 3,57% 0,74% 2,23% 40,42% 50,52% 5,05% 0,74% 3,27% 59,58% 0,00% 0,45% 100%

Table 2 statistics on the table above indicates that female employees are still in the majority at 59.58% compared to the male employees at 40.42%

Graph 1: Staff movement for the 2018/2019 financial year

The graph below illustrates that a total of Hundred eight (108) employees exited the organization during the 2018/2019 financial year, forty-nine (49) employees were permanent employees and fifty-four (54) employees were fixed term contract workers and five (5) temporary workers. Quarterly statistics are reported on this graph.

Quarter 1Quarter 2Quarter 3Quarter 4

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Staff Movement as at 31 March 2019

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Staff Movement as at 31 March 2019


HIV/AIDS HEALTH PROMOTION PROGRAMMES AND LABOUR RELATIONS

Table 3: HIV/AIDS Health Promotion Programmes

Question Yes No Details, If Yes

Does the entity have a dedicated unit or has it designated specific staff members to promote health and wellbeing of your employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose.

Yes The organization has a dedicated unit and designated and designated staff members namely: Employee Wellness Consultant one (1) and Human Resource Business Partners ten (10) to promote health and wellbeing of employees.

A Wellness Consultant is also responsible to oversee the Employee Wellness Programme.

The annual budget for the Employee Wellness Program for the entire organization is: R630 000.

Has the entity introduced an Employee Assistance or Health Promotion Programme for your employees? If so, indicate the key elements/services of this programme

Yes Over and above the existing internal resources, an external Employee Wellness Service Provider (ICAS) has been appointed for a period of three (3) years effective from July 2018 – June 2021.

The Employee Assistance Programme as rendered by ICAS, provides the following: -Professional Counselling services including stress management, Financial Advice, Relationship and family matters, Substance Abuse, Trauma, HIV & AIDS, Legal Advice and Change management. In addition, there is a 24hr Helpline which is accessible to all employees and their family members.

Periodic Health briefing sessions are conducted to all employees as well as employee wellness events. National mandatory events are also celebrated.

Has the entity reviewed its employment policies and practices to ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/practices so reviewed.

Yes Consultation process has taken place to develop the HIV and AIDS Policy and is awaiting approval.

An Occupational Health and Safety Policy has been developed, approved and consistently implemented.

Compensation for Occupational Injuries and Diseases Process Flow chart has been developed to assist employees as to how to apply for compensation from Department of Labour as and when required. The process flow is accessible on intranet.


Question Yes No Details, If Yes

Has the entity introduced measures to protect HIV positive employees or those perceived to be HIV positive from discrimination? If so, list the key elements of these measures.

Yes Continues HIV and AIDS awareness sessions are conducted.

The organization has developed Confidentiality form to protect employees from discrimination.

“Condo-Cans” Dispensers are placed and accessible to all employees.

Does the entity encourage its employees to undergo Voluntary Counselling and Testing? If so, list the results that you have achieved.

Yes Voluntary Counselling and Testing is provided and employees are encouraged to voluntarily participate.

Most employees do participate.

INJURY ON DUTY CASES

Registered Cases Three (3)

Cases settled Two (2)

Outstanding cases One (1)

LABOUR RELATIONS

Table 4: Disciplinary Cases Summary as at 31 March 2019

Disciplinary CasesNumber of Cases

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total

Dismissals 0 2 1 1 4

Final Written Warning (FWW) 4 2 5 3 14

Written Warning (WW) 5 7 2 4 18

Counselling / Verbal Warning 0 1 3 3 7

Withdrawn/Not guilty 0 1 1 1 3

TOTAL DISCIPLINARY CASES 9 13 12 12 46


Table 5: Grievance Cases Summary as at 31 March 2019

Grievance CasesNumber of Cases


Grievances 1 0 1 3 5

TOTAL GRIEVANCES CASES 1 0 1 3 5

Table 6: CCMA and Labour Court Cases as at 31 March 2019.

CCMA CasesNumber of Cases


Conciliation 4 1 2 4 11

Arbitration 0 1 1 0 2

Settlement agreements 0 0 1 1 2

Pre-Dismissal Arbitration 0 0 0 0 0

Cases dismissed/withdrawn 1 0 1 2 4

TOTAL DISCIPLINARY CASES 5 2 5 7 19

LABOUR COURT MATTERS 1 0 0 0 1


FINANCIAL INFORMATION

PART E


REPORT OF THE AUDITOR-GENERAL

REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE SMALL ENTERPRISE DEVELOPMENT AGENCY

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

OPINION

1. I have audited the financial statements of the Small Enterprise Development Agency set out on pages 105 to 155 which comprise the statement of financial position as at 31 March 2019, the statement of financial performance, statement of changes in net assets, cash flow statement and the statement of comparison of budget and actual information for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies.

2. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Small Enterprise Development Agency as at 31 March 2019, and its financial performance and cash flows for the year then ended in accordance with the Standards of Generally Recognised Accounting Practice (GRAP) and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No.1 of 1999) (PFMA).

BASIS FOR OPINION

3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for the audit of the financial statements section of this auditor’s report.

4. I am independent of the public entity in accordance with sections 290 and 291 of the International Ethics Standards Board for Accountants’ Code of ethics for professional accountants (IESBA code), parts 1 and 3 of the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) and the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA codes.

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.


RESPONSIBILITIES OF ACCOUNTING AUTHORITY FOR THE FINANCIAL STATEMENTS

6. The accounting authority is responsible for the preparation and fair presentation of the financial statements in accordance with the GRAP and the requirements of the PFMA, and for such internal control as the accounting authority determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

7. In preparing the financial statements, the accounting authority is responsible for assessing the Small Enterprise Development Agency’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the appropriate governance structure either intends to liquidate the public entity or to cease operations, or has no realistic alternative but to do so.

AUDITOR-GENERAL’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

8. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

9. A further description of my responsibilities for the audit of the financial statements is included in the annexure to this auditor’s report.

REPORT ON THE AUDIT OF THE ANNUAL PERFORMANCE REPORT

INTRODUCTION AND SCOPE

10. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice issued in terms thereof, I have a responsibility to report material findings on the reported performance information against predetermined objectives for selected programmes presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance.


11. My procedures address the reported performance information, which must be based on the approved performance planning documents of the public entity. I have not evaluated the completeness and appropriateness of the performance indicators/ measures included in the planning documents. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters.

12. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected programmes presented in the annual performance report of the public entity for the year ended 31 March 2019:

PROGRAMMES PAGES IN THE ANNUAL PERFORMANCE REPORT

Programme 1 – Enterprise Development Programme 37 – 40

Programme 2 – SEDA Technology Programme 41

13. I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

14. I did not raise any material findings on the usefulness and reliability of the reported performance information for these programmes:

• Programme 1 – Enterprise Development Page 37 - 40

• Programme 2 – SEDA Technology Programme Page 41

OTHER MATTERS

15. I draw attention to the matters below.

Achievement of planned targets

16. Refer to the annual performance report on pages 37 to 41 for information on the achievement of planned targets for the year and explanations provided for the under/ over achievement of a number of targets.


Adjustment of material misstatements

17. I identified material misstatements in the annual performance report submitted for auditing. These material misstatements were on the reported performance information of the Enterprise Development Programme and the SEDA Technology Programme. As management subsequently corrected the misstatements, I did not raise any material findings on the usefulness and reliability of the reported performance information.

REPORT ON THE AUDIT OF COMPLIANCE WITH LEGISLATION

INTRODUCTION AND SCOPE

18. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report material findings on the compliance of the public entity with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance.

19. I did not raise material findings on compliance with the specific matters in key legislation set out in the general notice issued in terms of the PAA.

OTHER INFORMATION

20. The accounting authority is responsible for the other information. The other information comprises the information included in the annual report which includes the audit committee’s report. The other information does not include the financial statements, the auditor’s report and those selected programmes presented in the annual performance report that have been specifically reported in this auditor’s report.

21. My opinion on the financial statements and findings on the reported performance information and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.

22. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programmes presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

23. If, based on the work I have performed, I conclude that there is a material misstatement in the other information; I am required to report that fact. I have nothing to report in this regard.


INTERNAL CONTROL DEFICIENCIES

24. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance on it. I did not identify any significant deficiencies in internal control.

Pretoria31 July 2019


ANNEXURE – AUDITOR-GENERAL’S RESPONSIBILITY FOR THE AUDIT

1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout my audit of the financial statements, and the procedures performed on reported performance information for selected programmes and on the public entity’s compliance with respect to the selected subject matters.

FINANCIAL STATEMENTS2. In addition to my responsibility for the audit of the financial statements as described in this auditor’s report, I also:

• identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the public entity’s internal control

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the accounting authority

• conclude on the appropriateness of the board of directors, which constitutes the accounting authority’s use of the going concern basis of accounting in the preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Small Enterprise Development Agency’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. My conclusions are based on the information available to me at the date of this auditor’s report. However, future events or conditions may cause a public entity to cease continuing as a going concern

• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation

COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE3. I communicate with the accounting authority regarding, among other matters, the planned scope and timing of the audit and

significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

4. I also confirm to the accounting authority that I have complied with relevant ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and, where applicable, related safeguards.


STATEMENT OF FINANCIAL PERFORMANCE

for the year ended 31 March 2019

NOTES2019

R2018

R

Revenue: Exchange 153 350 904 78 592 840

Interest received 2 16 129 603 7 672 967

Sundry income and proceeds from Insurance claims 2 2 849 149 1 562 040

Earnings from programmes and projects 2 134 372 152 69 357 833

Revenue: Non-exchange

Government grants 2 724 863 000 721 912 000

- Seda 580 241 000 575 766 000

- Seda Technology Programme (STP) 144 622 000 146 146 000

TOTAL REVENUE 2 878 213 904 800 504 840

Expenses

Depreciation, impairment and amortisation 3 (16 269 087) (12 714 842)

Finance costs 3 (6 917) (378 680)

Goods & Services (476 134 419) (430 355 696)

- Administrative and other costs 3 (144 262 767) (145 472 423)

- Programme and project costs 3 (331 871 652) (284 883 273)

Loss on sale and write off of assets 3 (376 373) (106 999)

Personnel cost 3 (340 041 473) (326 302 540)

TOTAL EXPENSES (832 828 269) (769 858 757)

SURPLUS / (DEFICIT) FOR THE YEAR 45 385 635 30 646 083


STATEMENT OF FINANCIAL POSITION

NOTES2019

R2018

R

ASSETS

Current Assets 274 758 240 204 195 011

Cash and cash equivalents 4 261 043 177 194 225 129

Accounts receivable 5 13 296 460 9 489 669

Inventories 6 418 603 480 213

Non Current Assets 39 460 942 49 759 418

Plant and equipment 7 34 974 166 49 248 520

Intangible assets 8 4 486 776 510 898

TOTAL ASSETS 314 219 182 253 954 429

LIABILITIES

Current Liabilities 187 473 729 172 224 993

Accounts payable 9 152 581 308 135 943 182

Current portion of operating lease obligations 11 2 195 341 1 263 338

Provisions 10 32 697 080 35 018 473

Non Current Liabilities 2 745 923 3 115 541

Long-term portion of operating lease obligations 11 2 745 923 3 115 541

TOTAL LIABILITIES 190 219 652 175 340 534

NET ASSETS 123 999 530 78 613 895

ACCUMULATED SURPLUS 123 999 530 78 613 895

TOTAL NET ASSETS 123 999 530 78 613 895

as at 31 March 2019


NOTES

Accumulated Surplus

R

Balance at 01 April 2017 47 967 812

Surplus for the year 30 646 083

Balance at 31 March 2018 78 613 895

Surplus for the year 45 385 635

BALANCE AT 31 MARCH 2019 123 999 530

STATEMENT OF CHANGES IN NET ASSETS

as at 31 March 2019


NOTES2019

R2018

R

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts

Earnings from programmes and projects 15c 130 565 361 69 958 634

Interest received 2 16 129 603 7 672 967

Government grants 2 724 863 000 721 912 000

Sundry Income and proceeds from Insurance claims 2 2 849 149 1 562 040

874 407 113 801 105 641

Payments

Finance costs 3 (6 917) (378 680)

Personnel cost 3 (340 041 473) (326 302 540)

Suppliers 15d (461 193 691) (359 889 393)

(801 242 081) (686 570 613)

NET CASH FLOWS FROM OPERATING ACTIVITIES 15b 73 165 032 114 535 028

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds on disposal of assets - 212 704

Purchase of assets 15a (6 346 984) (8 154 623)

NET CASH USED IN INVESTING ACTIVITIES (6 346 984) (7 941 919)

CASH FLOWS FROM FINANCING ACTIVITIES

NET CASH USED IN FINANCING ACTIVITIES - -

Net increase in cash and cash equivalents 66 818 048 106 593 109

Cash and cash equivalents at the beginning of the year 194 225 129 87 632 020

CASH AND CASH EQUIVALENTS AT END OF YEAR 4 261 043 177 194 225 129

CASH FLOW STATEMENT



Original Budget 2018/19

RAdjustments

R

Final Budget 2018/19

R

Actual 2018/19

R %Variance

R

Revenue

Earnings from programmes and projects1 82 045 152 60 913 198 142 958 350 134 372 152 (8 586 198)

Government grants 724 863 000 0 724 863 000 724 863 000 0

- Seda 580 241 000 0 580 241 000 580 241 000 0

- Seda Technology Programme 144 622 000 0 144 622 000 144 622 000 0

Interest received 2 5 000 000 0 5 000 000 16 129 603 11 129 603

Sundry Income 3 0 332 388 332 388 2 849 149 2 516 761

TOTAL REVENUE 811 908 152 61 245 586 873 153 738 878 213 904 0,58% 5 060 166

Expenses

Administrative and other costs 4 (139 177 997) (2 909 499) (142 087 496) (144 262 767) (2 175 271)

Depreciation, impairment & amortisation5 (17 611 770) 532 152 (17 079 618) (16 269 087) 810 531

Finance costs 6 0 0 0 (6 917) (6 917)

Loss in sale of assets 0 0 0 (376 373) (376 373)

Personnel cost 7 (355 236 985) 1 127 358 (354 109 627) (340 041 473) 14 068 154

Programme and project costs 8 (292 588 941) (57 741 073) (350 330 014) (331 871 652) 18 458 362

TOTAL EXPENSES (804 615 693) (58 991 062) (863 606 755) (832 828 269) 3,56% 30 778 486

SURPLUS 7 292 459 9 546 983 45 385 635 35 838 652

CAPEX 9 (7 292 459) (2 254 524) (9 546 983) (6 340 530) 3 206 453

TOTAL EXPENSES (incl Capex) (811 908 152) (61 245 586) (873 153 738) (839 168 799) 3,89% 33 984 939

SURPLUS (including CAPEX) 0 0 0 39 045 105

STATEMENT OF COMPARISON OF BUDGET AND ACTUAL INFORMATION



EXPLANATIONS OF BUDGET ADJUSTMENTS

1. Earnings from programmes and projects adjustment due to funding received for additional programmes and projects during the course of the year.

3. Sundry income - Adjustment due to increase in sundry income, mainly Skills Development Levy.

4. Administrative and other costs - Adjustment due to increase in admin related expenditure like short-term insurance, office rental etc.

5. Depreciation, impairment & amortisation - Adjustments due to the delay in purchasing of some assets.

7. Personnel cost - Adjustment due to some vacant positions and funding from stakeholders through from MOUs not materialised.

8. Programme and project costs - Adjustment due to additional funding received for certain programmes and projects.

9. CAPEX - Adjustment due to additional assets required by the organisation.

EXPLANATIONS OF BUDGET AND ACTUAL AMOUNTS COMPARISON VARIANCES:

1. Earnings from programmes and projects - Income is recognised once expenditure is incurred from project advance payments.

2. Interest received - Due to the cash in bank.

3. Sundry income - Due to income on Skills Development Levy claiming back.

4. Administration cost - Due to increase in short-term insurance cost and internet charges.

5. Depreciation, impairment & amortisation - Due to the delay in purchasing of some assets.

7. Personnel cost - Due to some vacant positions and funding from stakeholders through from MOUs not materialised.

8. Programmes and project costs - Less amount spent as programmes and projects were executed in a cost effective manner. Cost containment measures have been implemented and incorporated in the relevant policies and procedures of the organisation. Amounts spent on programmes and projects are outlined under note 3.

9. CAPEX - Due to delay in purchasing of some assets

Refer to note 1.17.


NOTES TO THE ANNUAL FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

The financial statements were prepared on a historical cost basis in accordance with Standards of Generally Recognised Accounting Practice and the Public Finance Management Act 1999 (Act No. 1 of 1999) as amended. The accounting policies have been applied consistently throughout the year and agree with the accounting policies applied in the previous financial year except where explicitly stated.

1.1 BASIS OF PREPARATION

The financial statements have been prepared on a going concern basis, in South African Rands.

In terms of section 55(1)b of the Public Finance Management Act, Seda is required to comply with Generally Recognised Accounting Practice (GRAP).

The financial statements have been prepared in accordance with the effective Standards of Generally Recognised Accounting Practices (GRAP) including any interpretation, guidelines and directives issued by the Accounting Standards Board (ASB). The Financial Statements fairly present the entity’s Financial Position, Financial Performance and Cash Flows as per the requirements of GRAP 1.

In the absence of a GRAP standard, the GRAP hierarchy in GRAP 3 - Accounting policies, changes in accounting estimates and errors are used to develop an appropriate accounting policy. In terms of GRAP 3, judgement must be used when developing an accounting policy. In applying judgement, GRAP 3 requires that management refers to and considers the applicability of the following sources in descending order:

(a) the requirements and guidance in Standards of GRAP dealing with similar and related issues; and

(b) the definitions, recognition criteria and measurement concepts for assets, liabilities, revenue and expenses set out in the Framework for the Preparation and Presentation of Financial Statements.

The annual financial statements have been prepared on a historical cost basis, except for the measurement of certain financial instruments, and incorporate the principal accounting policies set out below.

1.1.1 Adoption of new and revised standards

No new standards to be adopted by Seda for 2018/19 financial year.


1.1.2 Standards and interpretations issued, but not yet effective

Standards issued that are applicable to Seda but not yet effective up to date of issuance of Seda’s financial statements are listed below. These standards will be adopted when they become effective.

STANDARD OR INTERPRETATION PLANNED / EFFECTIVE DATE

GRAP 20 Related Party Transactions 1 April 2019

GRAP 108 Statutory receivables 1 April 2019

GRAP 109 Accounting by Principals and Agents 1 April 2019

GRAP 34 Separate Financial Statements 1 April 2020

GRAP 38 Disclosure of interest in Other Entities 1 April 2020

GRAP 20 - Related Party Transactions

The objective of this Standard is to ensure that a reporting entity’s financial statements contain the disclosures necessary to draw attention to the possibility that its financial position and surplus or deficit may have been affected by the existence of related parties and by transactions and outstanding balances with such parties.

An entity that prepares and presents financial statements under the accrual basis of accounting (in this Standard referred to as the reporting entity) shall apply this Standard in:

(a) identifying related party relationships and transactions;

(b) identifying outstanding balances, including commitments, between an entity and its related parties;

(c) identifying the circumstances in which disclosure of the items in (a) and (b) is required; and

(d) determining the disclosures to be made about those items.

Seda has already adopted GRAP 20.

GRAP 108 - Statutory Receivables

The objective of this Standard is to prescribe accounting requirements for the recognition, measurement, presentation and disclosure of statutory receivables to Seda.


Statutory receivables are receivables that:

(a) arise from legislation, supporting regulations, or similar means; and

(b) require settlement by another entity in cash or another financial asset.

Seda does not have statutory receivables.

GRAP 109 - Accounting by Principals and Agents

The objective of this standard is to outline principles to be used by an entity to assess whether it is party to a principal-agent arrangement, and whether it is a principal or an agent in undertaking transactions in terms of such an arrangement.

When an entity is party to a principal-agent arrangement, it shall apply the principles in this Standard to assess whether it is a principal or an agent before applying any other Standards of GRAP dealing with the recognition and measurement of revenue, expenses, assets and/or liabilities.

An agent is an entity that has been directed by another entity (a principal), through a binding arrangement, to undertake transactions with third parties on behalf of the principal and for the benefit of the principal.

A principal is an entity that directs another entity (an agent), through a binding arrangement, to undertake transactions with third parties on its behalf and for its own benefit.

A principle-agent arrangement results from a binding arrangement in which one entity (an agent), undertakes transactions with third parties on behalf, and for the benefit of, another entity (the principal).

Seda would determine principal-agent arrangements to ascertain the impact of this standard.

GRAP 34 - Separate Financial Statements

The objective of this Standard is to prescribe the accounting and disclosure requirements for investments in controlled entities, joint ventures and associates when an entity prepares separate financial statements.

An entity that prepares and presents financial statements under the accrual basis of accounting shall apply this Standard in accounting for investments in controlled entities, joint ventures and associates when it elects, or is required by legislation or similar means, to present separate financial statements.

Seda would determine when this standard is applicable to the organisation.


GRAP 38 - Disclosure of interest in other entities

The objective of this standard is to require an entity to disclose information that enables users of its financial statements to evaluate:

a) the nature of, and risks associated with, its interests in controlled entities, unconsolidated controlled entities, joint arrangements and associates, and structured entities that are not consolidated; and

b) the effects of those interests on its financial position, financial performance and cash flows.

An entity that prepares and presents financial statements under the accrual basis of accounting shall apply this Standard in disclosing information about its interests in controlled entities, unconsolidated entities, joints arrangements and associates, and structured entities that are not consolidated.

Seda would determine the impact of this standard for disclosure.

1.2 PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is initially recorded at cost. Costs include costs incurred initially to acquire an item of property, plant and equipment and costs incurred subsequently to add to or replace part of it. Costs are capitalised to the extent that the cost can be measured reliable and is probable that the cost will result in the inflow of future economic benefits to Seda.

Property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is charged so as to write off the cost of assets to their residual value over their estimated useful lives, using the straight-line method.

The residual value and the useful life of an asset is reviewed at least at each financial year end and if expectations differ from previous estimates, the change is accounted for as change in an accounting estimate. An estimation is made of the amount it would receive currently for the asset if the asset were already of the age and condition expected at the end of its useful life.

The carrying amount of property, plant and equipment is derecognised on disposal or when no future economic benefits or service potential are expected from its use or disposal.

The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is included in the Statement of Financial Performance.


1.3 INTANGIBLE ASSETS

An intangible asset is an identifiable non-monetary asset without physical substance.

An intangible asset is recognised if, and only if:

• It is probable that the expected future economic benefits that are attributable to the asset will flow to the entity; and

• The cost of the asset can be measured reliably.

An intangible asset is measured initially at cost.

The useful life of an intangible asset that arises from contractual or other legal rights shall not exceed the period of the contractual or other legal rights, but may be shorter depending on the period over which the entity expects to use the asset.

The useful life of the intangible asset shall include the renewal period only if there is evidence to support renewal by the entity without significant cost. The depreciable amount of the intangible asset with a finite useful life shall be allocated on a systematic basis over its useful life.

Amortisation is charged so as to write off the cost of assets to its residual value over their estimated useful lives, using the straight-line method.

1.4 IMPAIRMENT OF ASSETS

An “impairment” as a loss in the future economic benefits or service potential of an asset, over and above the systematic recognition of the loss of the asset’s future economic benefits or service potential through depreciation /amortisation. Impairment, therefore, reflects a decline in the utility of an asset to the entity that controls it.

Cash-generating assets are assets that are held with the primary objective of generating a commercial return. Assets will generate a commercial return when the entity intends to generate positive cash flows from the asset similar to a profit-orientated entity.

Non-cash-generating assets are primarily held for service delivery purposes.

Given the overall objectives of Seda, its assets are non-cash-generating.

At each Statement of Financial Position date, Seda reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication


exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, Seda estimates the recoverable amount of the cash and non-cash generating unit to which the asset belongs.

The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in the Statement of Financial Performance.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the Statement of Financial Performance.

1.5 LEASES

Leases are classified as finance leases whenever the terms of the lease transfers substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease asset or liability. This asset or liability is not discounted. Any contingent rents are expensed in the period they are incurred.

Assets held under finance leases are recognised as assets of Seda at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the Statement of Financial Position as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability.

Finance charges are charged as an expense in the Statement of Financial Performance, unless they are directly attributable to qualifying assets.


1.6 INVENTORIES

Consumable stores are initially recognised at cost. Consumable stores are valued at the lower of initial cost or current replacement cost.

The entity recognises inventories as an expense in the Statement of Financial Performance when distributed.

1.7 REVENUE RECOGNITION

Revenue from exchange transactions

Investment income represents interest received on cash balances with financial institutions. Interest is expensed, using the effective interest rate method.

Revenue from contracts and services rendered is recognised when all the following have been satisfied:

• Seda has transferred to the buyer the significant risks and rewards of ownership of the goods;

• Seda retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

• the amount of revenue can be measured reliably;

• it is probable that the economic benefits or service potential associated with the transaction will flow to Seda; and

• the costs incurred or to be incurred in respect of the transaction can be measured reliably.

When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the Statement of Financial Position date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied:

• the amount of revenue can be measured reliably;

• it is probable that the economic benefits or service potential associated with the transaction will flow to Seda;

• the stage of completion of the transaction at the Statement of Financial Position date can be measured reliably; and

• the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue shall be recognised only to the extent of the expenses recognised that are recoverable.


Revenue from the exchange transactions refers to revenue that accrued to the entity directly in return for services rendered, the value of which approximates the consideration received or receivable.

Revenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable for services provided in the normal course of business, net trade discounts and volume rebates, and value added tax.

Revenue from non-exchange transactions

Revenue from non-exchange transactions refers to transactions where the entity received revenue from another entity without directly giving approximately equal value in exchange. Revenue from non-exchange transactions is generally recognised to the extent that the related receipt or receivable qualifies for recognition as an asset and there is no liability to repay the amount.

Transfers from government entities represents the parliamentary grant from the Department of Small Business Development (dsbd). Transfers from government entities are recognised as income on accrual basis as and when invoiced or received from the dsbd and Department of Trade and Industry (dti).

Government grants are recognised when it is probable that future economic benefits or service potential will flow to the entity and these benefits can be measured reliably. The grant is recognised to the extent that there are no further obligations arising from the receipt of the grant.

Government grants received for the purpose of giving immediate financial support with no future related costs are recognised as income in the period in which they become receivable. Government grants relating to specific expenditure are deferred and recognised in the year during which the expenses are incurred.

1.8 PROVISIONS

Provisions are recognised when Seda has a present obligation as a result of a past event, and it is probable that Seda will be required to settle that obligation. Provisions are measured at the Management’s best estimate of the expenditure required to settle the obligation at the Statement of Financial Position date, and are discounted to present value where the effect is material.


1.9 EMPLOYEE BENEFITS

Short term employee benefits

The cost of all short-term employee benefits is recognised during the period in which the employee renders the related service. The provisions for employee entitlements to performance bonus and/or thirteen cheque represent the amount which Seda has a present obligation to pay as a result of employees’ service provided to the reporting date. The provisions have been calculated at undiscounted amounts based on current wage and salary rates.

Provident Fund

Seda contributes to defined contribution plans and recognises this expense as an expense in the Statement of Financial Performance. This fund is governed by the Pension Fund Act, 1956.

Medical Aid

Medical Aid contributions are restricted to the period of employment.

1.10 FINANCIAL INSTRUMENTS

Financial assets and financial liabilities are initially recognised at fair value plus transaction cost on Seda’s Statement of Financial Position when Seda has become a party to contractual provisions of the instrument.

Subsequent to initial recognition these instruments are measured as set out below:

Financial assets

Financial assets are cash and cash equivalents and trade and other receivables.

Accounts receivable

Trade receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are expensed when there is objective evidence that the asset is impaired. The allowance recognised is measured as the difference


between the asset’s carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition.

Bank and cash balances

Cash and cash equivalents comprise of cash on hand and demand deposits and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. Cash is subsequently held at amortised cost.

Financial liabilities

Financial liabilities consist of finance lease long-term liabilities, trade and other payables and other short-term finance lease liabilities.

The financial liabilities are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method.

Trade payables

Trade payables are initially measured at fair value, and are subsequently measured at amortized cost, using the effective interest rate method.

De-recognition

The de-recognition of financial instruments occurs when the obligation is extinguished. A financial liability (or part of it) is extinguished when the debtor either:

• Discharges the liability (or part thereof) by paying the creditor, normally with cash, other financial liabilities, goods or services;

• Is legally released from primary responsibility for the liability (or part of it) either by process of law (expires) or by the creditor (cancelled). If the debtor has given a guarantee, this condition may still be met; or

• Waives the debt or it is assumed by another entity by way of a non-exchange transaction. These transactions are accounted for by considering the requirements in GRAP 104 and GRAP 23 on Revenue from Non-exchange Transactions (Taxes and Transfers).


1.11 CRITICAL JUDGMENTS IN APPLYING THE ENTITY’S ACCOUNTING POLICIES

In the process of applying Seda’s accounting policies management has made the following judgments that have the most significant effect on the amounts recognised in the financial statements:

Property, plant and equipment

Depreciation is calculated on the historical cost using the methods and the rates stated below in note 7. The residual values of all assets are estimated, until they are not usable anymore.

Bonus provision

The provision for bonuses is based on management’s judgement and represents the obligation to pay bonuses to salaried employees as a result of predetermined performance criteria having been met. This is in line with GRAP 25.

1.12 RELATED PARTIES

Seda, as a schedule 3A Public Entity, under Public Finance Management Act (PFMA), operates in an economic sector currently dominated by entities directly or indirectly owned by the South African Government. As a consequence of the constitutional independence of the three spheres of government in South Africa, only entities within the national sphere of government are considered to be related parties. Key management are those persons responsible for planning, directing and controlling the activities of the entity, including those charged with the governance of the entity in accordance with legislation, in instances where they are required to perform such functions.

Only transactions with related parties not at arm’s length or not in the ordinary course of business, are disclosed. Refer to note 2,14,17 and 18.

1.13 IRREGULAR EXPENDITURE

Irregular expenditure comprises expenditure, other than unauthorised expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation, including:

• the Public Finance Management Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999); or

• the State Tender Board Act, 1968 (Act No. 86 of 1968) or any regulation made in terms of that Act.


Irregular expenditure is accounted for as expenditure in the Statement of Financial Performance and where recovered, it is subsequently accounted for as revenue in the Statement of Financial Performance.

1.14 FRUITLESS AND WASTEFUL EXPENDITURE

Fruitless and wasteful expenditure means expenditure that was made in vain and would have been avoided had reasonable care been exercised. Fruitless and wasteful expenditure is accounted for as expenditure in the Statement of Financial Performance and where recovered, it is subsequently accounted for as revenue in the Statement of Financial Performance.

1.15 CONTINGENT ASSETS AND LIABILITIES

A contingent liability is:

• a possible obligation that arises from past events, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity;

• or a present obligation that arises from past events but is not recognised because it is not probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation; or the amount of the obligation cannot be measured with sufficient reliability.

Contingent liabilities may develop in a way not initially expected. Therefore, they are assessed continually to determine whether an outflow of resources embodying economic benefits or service potential has become probable. If it becomes probable that an outflow of future economic benefits or service potential will be required for an item previously dealt with as a contingent liability, a provision is recognised in the financial statements of the period in which the change in probability occurs.

A contingent asset usually arises from unplanned or other unexpected events that give rise to the possibility of an inflow of economic benefit to the entity. The inflow of economic benefit must be probable, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

Contingent assets are not recognised in financial statements since this may result in the recognition of revenue that may never be realised. However, when the realisation of revenue is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate.


1.16 COMMITMENTS

Commitments are agreements that were entered into by the agency with an external service provider or parties before the reporting date where delivery is expected to take effect after the reporting date.

Such commitments do not meet the definition of a liability in terms of the conceptual framework.

1.17 PRESENTATION OF BUDGET INFORMATION

Comparison of budget and actual amounts are presented in the Statement of Comparison of Budget and Actual Information for the financial year 2018/19. Seda only presents the final budget amounts. Differences (variances) between the actual amounts and budget amounts are presented and explained.

As per GRAP 24 Seda prepares its budget on a comparable basis, meaning that the budget and financial instruments:

• are prepared using the accrual basis of accounting for both;

• including the same activities and entities;

• using the same classification system; and

• are prepared for the same period.

1.18 SEGMENT REPORTING

The objective of this Standard is to establish principles for reporting financial information by segments. The disclosure of this information will:

a) enable users of the financial statements to better understand the entity’s performance, to evaluate the nature and financial effects of the activities in which it engages and the economic environments in which it operates;

b) identify the resources allocated to support the major activities of the entity and assist in making decisions about the allocation of resources; and

c) enhance the transparency of financial reporting and enable the entity to better discharge its accountability obligations.

A segment is a distinguishable activity or group of activities of an entity for which is appropriate to report financial information separately, for evaluating the entity’s past performance in achieving its objectives and for making decisions about the future allocation of resources.


Segment information is either presented based on service or geographical segments. Service segments relate to a distinguishable component of an entity that provides specific or achieves particular operating objectives that are in line with the entity’s overall mission. Geographical segments relate to specific outputs generated or particular objectives achieved, by an entity within a particular region. Seda choose to adopt reporting based on geographical segments as management closely monitors operational performance and resources allocation to the provinces for optimal service delivery, as per GRAP 18. The basis of accounting for any transactions and nature of measurement between reportable segments is the same throughout Seda.


2. REVENUE2019

R2018

R

REVENUE: EXCHANGEInterest received 16 129 603 7 672 967

Sundry income 2 393 870 1 314 888

Proceeds from insurance claims 455 279 247 152

Earnings from programmes and projects 134 372 152 69 357 833

• Department of Small Business Development (dsbd) or Department of Trade and Industry (dti) specific projects 117 395 816 42 899 751

• Local government 2 805 807 2 637 954

• Other specific projects 13 623 048 21 127 435

• Provincial government 547 481 2 692 693

REVENUE: NON-EXCHANGEGovernment grants (dsbd) 724 863 000 721 912 000

• Seda 580 241 000 575 766 000

• Seda Technology Programme (STP) 144 622 000 146 146 000

878 213 904 800 504 840

3. SURPLUS FOR THE YEAR

Surplus for the year is arrived at after taking into account the following:

Personnel cost 340 041 473 326 302 540

- Long service awards - 727 912

- Provision for leave 3 748 319 790 532

- Provision for performance bonus 27 041 245 34 780 959

- Salaries 304 700 444 286 556 999

- Skills Development Levy (SDL) 3 099 222 1 840 082

- Temporary workers 410 215 543 463

- Workmen's compensation 1 042 028 1 062 593


3. SURPLUS FOR THE YEAR (CONTINUED)2019

R2018

R

Administrative and other costs 144 262 767 145 472 423

Administrative costs 86 642 088 92 288 201

• Admin related (excluding boards members’ emoluments, operating lease expense, finance cost and provision for bad debt) 50 184 395 53 264 596

- Cleaning 4 580 094 4 471 278

- Consumables 2 335 077 3 112 976

- Maintenance and repairs 1 598 728 1 326 486

- Maintenance and repairs - hardware 367 195 41 167

- Maintenance and repairs - office equipment 47 311 66 106

- Maintenance and repairs - office buildings 472 823 563 521

- Maintenance and repairs - vehicles 711 399 655 692

- Municipal services 7 536 751 8 661 668

- Other (includes catering, general expenditure, insurance, stationery etc.) 14 647 361 14 803 996

- Provision for Inventory write-off - (67 051)

- Travel and accommodation 19 486 384 20 955 243

• Communication costs 16 589 023 18 339 627

- Advertising and marketing 2 209 672 3 523 277

- Printing and publication 2 253 827 2 518 614

- Other (includes courier cost, library maintenance etc.) 1 647 520 1 643 290

- Telephone and cell phone 10 478 004 10 654 446

• Computer services 15 706 988 13 307 345

- Internet charges 5 951 736 7 351 603

- Specialised computer services 310 542 5 725

- Software licences 9 444 710 5 950 017

• Recruitment and re-location costs 1 939 004 3 804 546


3. SURPLUS FOR THE YEAR (CONTINUED) NOTES2019

R2018

R

• Professional services (excluding auditors' remuneration) 1 217 940 1 897 885

- Consultants 174 848 1 258 421

- Legal services 674 650 354 469

- Other (includes membership fees to professional bodies etc.) 368 442 284 995

• Staff training & development 1 004 738 1 674 202

Auditors' remuneration 2 978 955 2 496 040

• External auditors 2 558 263 1 467 988

- Regularity audit 2 558 263 1 467 988

• Internal auditors 420 692 1 028 052

Board members' emoluments 1 403 022 1 450 375

• For services as members (excl CEO remuneration) 1 306 840 1 280 655

• Board sub-committees 96 182 169 720

Operating lease expenses

• Buildings and equipment 53 111 245 49 204 377

Provision for bad debts 5 127 457 33 430

Depreciation, impairment and amortisation 16 269 087 12 714 842

• Computer equipment 8 121 640 7 065 959

• Computer software 511 019 229 069

• Equipment 1 400 699 565 164

• Motor vehicles 4 167 039 3 384 148

• Office furniture 1 603 667 501 632

• Leasehold improvements 465 023 968 870

Finance costs 6 917 378 680

• Interest paid 6 917 378 680


3. SURPLUS FOR THE YEAR (CONTINUED)2019

R2018

R

Loss on sales and write off of plant and equipment 376 373 106 999

• Loss on sales and write off of plant and equipment 376 373 106 999

Programme and projects costs 331 871 652 284 883 273

• Enterprise Development Fund (EDF) 41 830 186 54 634 017

• Other programmes and projects (includes dsbd specific projects, programme development, ICT projects, specific target market projects etc.) 86 331 581 57 561 151

• Seminars and workshops for clients 5 759 637 6 895 191

• STP - Incubators 178 400 313 142 353 105

• STP - Quality and Standards projects 5 452 448 5 340 536

• STP - Technology Transfer Fund (TTF) 14 097 487 18 099 273

4. CASH AND CASH EQUIVALENTS

Call account 229 215 502 181 449 895

Current accounts 31 463 763 12 410 322

Petty cash 363 912 364 912

261 043 177 194 225 129

Refer to note 16.4 for details on interest rates.

Of the cash balance R66 539 394 (R82 112 353) relates to grants received in advance which are to be utilised for specific projects as reflected in note 9.


5. ACCOUNTS RECEIVABLE NOTES2019

R2018

R

EXCHANGE TRANSACTIONS

Deposits 4 009 915 1 997 800

Payment in advance 7 341 308 6 991 325

Relocation cost receivables 97 433 135 185

Staff receivables 18 294 107 406

Sundry receivables 2 122 671 524 805

13 589 621 9 756 521

Provision for bad debt - sundry receivables (293 161) (266 852)

13 296 460 9 489 669

Provision for bad debts:

Movement for the year:

Opening Balance at 1 April 266 852 400 258

Less: Bad debt written-off or recovered (101 148) (166 836)

165 704 233 422

Net charge to the Statement of Financial Performance 3 127 457 33 430

CLOSING BALANCE AT 31 MARCH 293 161 266 852

The ageing analysis of the past due sundry receivables is as follows:

< 3 months 1 513 224 238 704

3 - 6 months 27 020 -

6 months - 1 year 35 348 19 760

1+ years 547 079 266 341

Total sundry receivables past due date 2 122 671 524 805

Note: No non-exchange transactions for accounts receivable


6. INVENTORIES2019

R2018

R

Consumable stores at cost 418 603 412 402

Provision for inventory write-downs - 67 811

Current replacement cost 418 603 480 213

Provision for stationery and computer consumables written-off:

Movement for the year:

Opening Balance at 1 April (67 051) 79 704

Less: Stationery and computer consumables write-downs / written-off 67 051 (79 704)

Net charge to the Statement of Financial Performance - (67 051)

CLOSING BALANCE AT 31 MARCH - (67 051)


7. PLANT & EQUIPMENT - 2018/19

Computer Equipment

REquipment

RMotor Vehicles

R

Office Furniture

R

Leasehold Improvements

RTotal

R

MAJOR ASSETS (ABOVE R2 000 PER ITEM)

At 1 April 2018

Cost 60 468 157 14 796 117 35 969 964 23 007 392 9 928 719 144 170 349

Accumulated depreciation and impairment (36 453 641) (9 720 250) (21 352 047) (18 455 808) (8 947 975) (94 929 721)

Opening carrying amount 24 014 516 5 075 867 14 617 917 4 551 584 980 744 49 240 628

Year ended 31 March 2019


Additions at cost 4 357 746 626 604 660 583 362 377 937 315 6 944 625

Disposals and write off at cost (850 298) (317 396) (409 733) (66 842) (750 116) (2 394 385)

Disposal and write off depreciation 637 648 260 296 182 801 64 202 750 102 1 895 049

Work in progress 0 0 0 0 0 0

Depreciation for the year (8 113 101) (1 394 328) (4 167 039) (1 597 315) (465 023) (15 736 806)

Cost re-allocated (5 181 046) (10 170) 0 80 390 0 (5 110 826)

Impairment 0 0 0 0 0 0

Depreciation Reallocated 90 170 28 340 (4) 10 982 0 129 488

Closing carrying amount 14 955 635 4 269 213 10 884 525 3 405 378 1 453 022 34 967 773

At 31 March 2019

Cost 58 794 559 15 095 155 36 220 814 23 383 317 10 115 918 143 609 763


Carrying amount 14 955 635 4 269 213 10 884 525 3 405 378 1 453 022 34 967 773

Useful lives 4 years 6 years 5 years 6 years 6 years or lease period


7. PLANT & EQUIPMENT - 2018/19 (CONTINUED)

Computer Equipment

REquipment

RMotor Vehicles

R

Office Furniture

R


RTotal

R

MINOR ASSETS (BELOW R2 000 PER ITEM AND EXCLUDING MAJOR ASSETS)

At 1 April 2018

Cost 258 962 545 059 0 313 697 30 570 1 148 288

Accumulated depreciation and impairment (253 894) (544 041) 0 (311 919) (30 542) (1 140 396)

Opening carrying amount 5 068 1 018 0 1 778 28 7 892



Additions at cost 7 037 6 024 0 4 700 0 17 761

Disposals and write off at cost (41 820) (23 661) 0 (2) (3 423) (68 906)

Disposal and write off depreciation 41 784 23 631 0 0 3 420 68 835


Depreciation for the year (8 539) (6 371) 0 (6 352) 0 (21 262)

Cost re-allocated 0 399 0 1 674 0 2 073


Depreciation Reallocated 1 (1) 0 0 0 0

Closing carrying amount 3 531 1 039 0 1 798 25 6 393

At 31 March 2019

Cost 224 179 527 821 0 320 069 27 147 1 099 216


Carrying amount 3 531 1 039 0 1 798 25 6 393

TOTAL CARRYING VALUE 14 959 166 4 270 252 10 884 525 3 407 176 1 453 047 34 974 166

Note: No assets are pledged as security and there’s no contractual commitment for the acquisition of assets.



Computer Equipment

REquipment

RMotor Vehicles

R

Office Furniture

R


RTotal

R


At 1 April 2017

Cost 59 691 795 13 605 287 34 770 754 19 521 339 9 874 206 137 463 381





Additions at cost 2 643 361 1 631 432 1 498 033 141 558 1 167 153 7 081 537

Disposals and write off at cost (3 332 426) (1 026 619) (298 823) (834 201) (1 075 640) (6 567 709)

Disposal and write off depreciation 3 296 148 985 288 275 315 809 995 1 013 630 6 380 376

Work in progress 926 620 0 0 0 0 926 620

Depreciation / amortisation for the year (7 065 156) (553 960) (3 384 148) (495 105) (968 870) (12 467 239)

Cost re-allocated 538 807 586 017 0 4 178 696 (37 000) 5 266 520


Depreciation Reallocated (536 410) (577 759) (85 465) (4 190 971) (626) (5 391 231)

Closing carrying amount 24 014 516 5 075 867 14 617 917 4 551 584 980 744 49 240 628

At 31 March 2018

Cost 60 468 157 14 796 117 35 969 964 23 007 392 9 928 719 144 170 349


Carrying amount 24 014 516 5 075 867 14 617 917 4 551 584 980 744 49 240 628

Useful lives 4 years 6 years 5 years 6 years 6 years or lease period



Computer Equipment

REquipment

RMotor Vehicles

R

Office Furniture

R


RTotal

R


At 1 April 2017

Cost 871 599 1 162 264 0 4 539 332 45 391 6 618 586

Accumulated depreciation and impairment (868 289) (1 160 595) 0 (4 531 355) (45 350) (6 605 589)




Additions at cost 3 319 11 217 0 6 531 (1) 21 066

Disposals and write off at cost (95 281) (107 615) 0 (445 393) (6 316) (654 605)

Disposal and write off depreciation 94 969 107 475 0 444 806 6 312 653 562


Depreciation / amortisation for the year (803) (11 204) 0 (6 527) 0 (18 534)

Cost re-allocated (520 675) (520 807) 0 (3 786 773) (8 504) (4 836 759)


Depreciation Reallocated 520 229 520 283 0 3 781 157 8 496 4 830 165

Closing carrying amount 5 068 1 018 0 1 778 28 7 892

At 31 March 2018

Cost 258 962 545 059 0 313 697 30 570 1 148 288


Carrying amount 5 068 1 018 0 1 778 28 7 892

TOTAL CARRYING VALUE 24 019 584 5 076 885 14 617 917 4 553 362 980 772 49 248 520

Note: No assets are pledged as security and there’s no contractual commitment for the acquisition of assets.


8. INTANGIBLE ASSETS

2019Computer Software

R


R


At 1 April 2018

Cost 1 037 078 1 048 994

Accumulated depreciation / amortisation (526 182) (434 415)

Opening carrying amount 510 896 614 579


Opening carrying amount 510 896 614 579

Additions at cost 180 665 -

Disposals and write off at cost - (137 316)

Disposal and write off depreciation - 137 301

Work in progress - 125 400

Depreciation / amortisation for the year (511 019) (229 069)

Cost re-allocated 4 306 232 -

Impairment - -

Depreciation re-allocated - 1

Closing carrying amount 4 486 774 510 896

At 31 March 2019

Cost 5 523 975 1 037 078

Accumulated depreciation / amortisation (1 037 201) (526 182)

Carrying amount 4 486 774 510 896

Useful lives 4 years 4 years


8. INTANGIBLE ASSETS (CONTINUED)


R


R


At 1 April 2018

Cost 763 1 106

Accumulated depreciation / amortisation (761) (1 096)

Opening carrying amount 2 10


Opening carrying amount 2 10

Additions at cost - -

Disposals and write off at cost - (343)

Disposal and write off depreciation - 335

Work in Progress - -

Depreciation / amortisation for the year - -

Cost re-allocated - -

Impairment - -

Depreciation re-allocated - -

Closing carrying amount 2 2

At 31 March 2019

Cost 763 763

Accumulated depreciation / amortisation (761) (761)

Carrying amount 2 2

TOTAL CARRYING VALUE 4 486 776 510 898


9. ACCOUNTS PAYABLE2019

R2018

R

EXCHANGE TRANSACTIONSEarnings from programme and projects received in advance 1 66 539 394 82 112 353

Leave pay accrual 16 595 998 12 847 679

Provision for 13th cheque (staff savings) 873 561 905 828

Sundry payables and accrued expenses 63 491 829 34 762 627

Trade payables 5 080 526 5 314 695

152 581 308 135 943 182

Trade payables are non-interest bearing and are settled on a 30 day basis. Due to the short-term nature of the payables, management believes that the carrying amount approximates their fair value.

1) Including R36 961 107 (R64 716 208) for dsbd ring fenced projects. The balance relates to other stakeholder-funded projects. The conditional balance will be recognised as revenue in future accounting periods upon completion of the specified task or incurring the costs on the projects.

2) Provision for loss of assets has been reclassified from Accounts payable to Provisions, please see note 21.

* No non-exchange transactions for accounts payable.

10. PROVISIONS

Provision for loss of assets 63 171 105 198

Provision for bonuses 32 633 909 34 913 275

32 697 080 35 018 473

MOVEMENT FOR LOSS OF ASSETSProvision for loss of assets

Opening balance at 1 April 105 198 -

less: depreciation (42 027) -

63 171 -

Net charge to the Statement of Financial Performance - 105 198

CLOSING BALANCE AT 31 MARCH 63 171 105 198

RESTATED


10. PROVISIONS (CONTINUED)2019

R2018

R

MOVEMENT FOR THE YEAR FOR BONUSESProvision for bonuses

Opening balance at 1 April 34 913 275 25 236 777

less: bonuses paid (29 320 611) (25 104 461)

5 592 664 132 316

Net charge to the Statement of Financial Performance 27 041 245 34 780 959

CLOSING BALANCE AT 31 MARCH 32 633 909 34 913 275

The provision for bonuses is based on management’s judgement and represents the obligation to pay bonuses to salaried employees, as a result of predetermined performance criteria having been met. Performance bonuses are paid one year in arrear as the assessment of eligible employees had not taken place at the reporting date.

11. OPERATING LEASE OBLIGATION

Seda leases office buildings and photocopiers for its National Office, nationwide Provincial offices and branches in terms of operating leases. Seda does not have the option to acquire the buildings or photocopiers at the termination of the leases.

Current portion 2 195 341 1 263 338

Non-current portion 2 745 923 3 115 541

Straight-lining effect of the operating lease 4 941 264 4 378 879

OPERATING LEASE COMMITMENTS

The future minimum lease payments under non-cancellable operating leases are as follows:

Up to one year 43 317 364 31 832 058

Between two and five years 61 457 429 46 092 262

104 774 793 77 924 320


12. CONTINGENT ASSETS AND LIABILITIES2019

R2018

R

CONTINGENT LIABILITIESThere are contingent liabilities in respect of:

Legal claims - Employees 115 500 60 000

Legal claims - Suppliers 44 500 -

Cash surplus awaiting approval from National Treasury 118 743 281 -

118 903 281 60 000

• Legal Claims - Employees - the first claim relates to an employee claiming unpaid Injury on Duty (IOD) medical expenses. The second claim relates to an ex-employee claiming leave pay-out which she alleged did not happen upon termination of employment.

• Legal Claims - Suppliers - the claim relates to a supplier claiming damages due to work not awarded to him but to another service provider.

CASH SURPLUS AWAITING APPROVAL FROM NATIONAL TREASURYCalculation in terms of Paragraph 3.2 of the National Treasury Instruction No 6 of 2017/2018 NOTES

Nat Treasury request

R

Amounts as per AFS

R

Cash and cash equivalents at end of the year 261 043 177 261 043 177

Add: Receivables 13 296 460 13 296 460

Less: Current liabilities 1 (86 041 914) (152 581 308)

Less: Commitments 2 (69 554 441) (112 871 805)

Cash Surplus 118 743 282 8 886 524

Note 1: Accounts payable is R152,581,308 in terms of GRAP. Amounts received in advanced with obligations have been subtracted, amounting to R66,539,394.

Note 2: Operating leases commitments of R43,317,364 relating to rental agreements have been subtracted.

Note 3: Seda is awaiting National Treasury’s response to retain this cash surplus.

Refer to note 1.15. Due to the uncertain and adversarial nature of litigation it is extremely difficult to determine the exact cost involved in litigating a matter, thus the cost order on a specific tariff and interest amounts are not determined.


13. COMMITMENTS2019

R2018

R

CAPITAL EXPENDITUREComputer equipment 3 555 840 843 737

Computer software - 175 592

Equipment 23 528 223 830

Office furniture - 39 856

3 579 368 1 283 015

OPERATIONAL EXPENDITUREApproved and contracted 55 588 936 53 902 965

Approved but not yet contracted 10 386 137 5 199 890

65 975 073 59 102 855

Total Commitments 69 554 441 60 385 870

COMMITMENTS SPLIT PER PERIODUp to 12 months 34 794 517 26 726 529

Longer than 12 months 34 759 924 33 659 341

69 554 441 60 385 870


14. REMUNERATION OF BOARD OF DIRECTORS

14.1 BOARD MEMBERS: 1 APRIL 2018 TO 31 MARCH 2019

No Name

Directors fees and Preparation


Performance bonus

Re- imbursements

TOTALR

1 Hirachund, A 142 980 256 16 350 - - - 18 899 178 485

2 Lugayeni, PF 168 434 1 408 74 430 - - - 12 883 257 155

3 Makhuvha, TR 13 640 - 930 - - - 960 15 530

4 Mohoto, M * - - - - - - - -

5 Monnakgotla, Z 111 690 384 16 414 - - - 14 415 142 903

6 Thabaneng, DMN 184 021 640 24 564 - - - 18 468 227 693

7 Tshikwatamba, NM - 2 688 22 428 2 569 760 60 000 303 497 - 2 958 373

8 Venter, M 124 640 - 4 720 - - - 1 027 130 387

9 Zwane, I 263 021 2 414 61 182 - - - 28 070 354 687

1 008 426 7 790 221 018 2 569 760 60 000 303 497 94 722 4 265 213


No Name Consultant FeesSubsistence allowance Travelling Salary Allowances

Performance bonus

Re- imbursements

TOTALR

10 Lesejane, MJ 85 270 256 7 020 - - - 3 636 96 182

11 Roelofse, K * - - - - - - - -

85 270 256 7 020 - - - 3 636 96 182

TOTAL 1 093 696 8 046 228 038 2 569 760 60 000 303 497 98 358 4 361 395

* These members did not receive remuneration due to being employed elsewhere in the Public Sector.


14. REMUNERATION OF BOARD OF DIRECTORS (CONTINUED)

14.2 BOARD MEMBERS: 1 APRIL 2017 TO 31 MARCH 2018

No Name

Directors fees and Preparation


Performance bonus

Re- imbursements

TOTALR

1 Hirachund, A 156 159 220 20 160 - - - 405 176 944

2 Lugayeni, PF 237 496 1 430 11 740 - - - 1 110 251 776

3 Makhuvha, TR 11 765 - 7 200 - - - 50 747 69 712

4 Mohoto, M * - - - - - - - -

5 Monnakgotla, Z 128 021 110 14 400 - - - - 142 531

6 Thabaneng, DMN 190 690 330 18 025 - - - 297 209 342

7 Tshikwatamba, NM - 2 090 19 000 2 359 809 60 000 131 745 3 277 2 575 921

8 Venter, M 144 532 220 3 072 - - - - 147 824

9 Zwane, I 255 789 1 100 25 637 - - - - 282 526

1 124 452 5 500 119 234 2 359 809 60 000 131 745 55 836 3 856 576


No Name Consultant FeesSubsistence allowance Travelling Salary Allowances

Performance bonus

Re- imbursements

TOTALR

10 Lesejane, MJ 162 190 330 7 200 - - - - 169 720

11 Roelofse, K * - - - - - - - -

162 190 330 7 200 - - - - 169 720

TOTAL 1 286 642 5 830 126 434 2 359 809 60 000 131 745 55 836 4 026 296

* These members did not receive remuneration due to being employed elsewhere in the Public Sector.


15. NOTES TO THE CASH FLOW STATEMENT NOTES2019

R2018

R

A) PLANT, EQUIPMENT AND INTANGIBLE ASSETS

Seda acquired assets, as per asset note 7 and 8. 6 346 984 8 154 623

B) RECONCILIATION OF SURPLUS FOR THE YEAR TO NET CASH FLOWS FROM OPERATING ACTIVITIES

Surplus for the Year 45 385 635 30 646 083

Non-cash Movements: 16 645 460 12 821 841

Depreciation, impairment and amortisation 16 269 087 12 714 842

Loss on sale of assets 376 373 106 999

Changes in Working Capital 11 133 937 71 067 104

Increase in accounts payable 16 638 126 60 459 090

(Decrease) / Increase in accounts receivable (3 806 791) 600 801

Increase in inventories 61 610 97 703

(Decrease) / Increase in provisions (2 321 393) 9 781 696

Smoothing effect of operating lease 562 385 127 814

Net Cash Flows from Operating Activities 73 165 032 114 535 028

C) RECEIPTS OF EARNINGS FROM PROGRAMME AND PROJECTS

Accounts receivable - current period 5 (13 296 460) (9 489 669)

Accounts receivable - prior period 5 9 489 669 10 090 470

Gross Earnings from programme and projects 2 134 372 152 69 357 833

130 565 361 69 958 634

RESTATED


15. NOTES TO THE CASH FLOW STATEMENT (CONTINUED)2019

R2018

R

D) RECONCILIATION OF SUPPLIERS PAYMENTS

Goods and Services 476 134 419 430 355 696

Changes in Working Capital (14 940 728) (70 466 303)

Increase in accounts payable (16 638 126) (60 459 090)

Increase in inventories (61 610) (97 703)

(Decrease) / Increase in provisions 2 321 393 (9 781 696)

Smoothing effect of operating lease (562 385) (127 814)

Supplier payments 461 193 691 359 889 393

16. FINANCIAL INSTRUMENTS

16.1 CAPITAL RISK MANAGEMENT

As Seda is not exposed to long term debt, there is no meaningful debt to equity ratios such as gearing ratios to be disclosed. The majority of the funding is received from the Department of Small Business Development (DSBD) and therefore is dependent on their support.

16.2 FINANCIAL RISK MANAGEMENT OBJECTIVES

Management monitor and manage the financial risks relating to the operations of the entity through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, fair value, interest risk), credit risk, liquidity risk and cash flow interest rate risk.

Compliance with policies and exposure limits is reviewed by the Internal Auditors on a continuous basis. Seda does not enter into or trade in financial instruments, including derivative financial instruments, for speculative purposes.

16.3 MARKET RISK

Seda’s activities are of such a nature that it does not materially expose it to financial risks of changes in foreign currency exchange rates and interest rates. There has been no change to the agency’s exposure to market risks or the manner in which it manages and measures the risk.


16. FINANCIAL INSTRUMENTS (CONTINUED)

16.4 INTEREST RATE RISK MANAGEMENT

Seda is exposed to interest rate risk with the current interest rate movements. The risk is managed by investment of surplus funds at fixed and floating interest rates for periods of 90 days and shorter with reputable banks.

The following table identifies the period over which those financial instruments that are sensitive to interest rate risk reprice. Seda surplus funds are invested in terms of its investments policy.

2019

Assets

Effective Interest Rate

as at 31 March 2019

Less than 6 months

R

More than 6 months

RTotal

R

Current cash balances 5,25% 31 463 763 - 31 463 763

Short-term call deposits 6,25% 229 215 502 - 229 215 502

260 679 265 - 260 679 265

2018

Assets

Effective Interest Rate

as at 31 March 2018

Less than 6 months

R

More than 6 months

RTotal

R

Current cash balances 5,25% 12 410 322 - 12 410 322

Short-term call deposits 6,25% 181 449 895 - 181 449 895

193 860 217 - 193 860 217

16.5 OTHER PRICE RISKS

Prices for future purchases and sales of goods and services are generally established on normal commercial terms directly with suppliers and customers. Management consider the price risk to be insignificant.



16.6 CREDIT RISK MANAGEMENTCredit risk refers to the risk that a counter party would default on its contractual obligations resulting in financial loss to the entity.

Financial assets which potentially subject Seda to concentrations of credit risk consist principally of cash and short-term deposits placed with high credit quality financial institutions. Currently Seda’s cash balances and call deposits are held at ABSA bank. Trade receivables are presented net of an allowance for doubtful receivables. Seda does not have any significant exposure to any other individual customer or counter party.

The carrying amounts of financial assets included in the Statement of Financial Position represent the Seda’s exposure to credit risk in relation to these assets.

The carrying amount of financial assets to credit risk at the reporting date was:

CARRYING AMOUNT

NOTES2019

R2018

R

Accounts receivable 5 13 296 460 9 489 669

Cash and cash equivalents 4 261 043 177 194 225 129

274 339 637 203 714 798

AGEING OF ACCOUNTS RECEIVABLES (NET OF PROVISION FOR DOUBTFUL DEBTS)

Current (0 - 30 days) 4 753 130 4 749 435

31 - 60 days 1 478 935 390 106

61 - 90 days - 290 700

91 - 120 days 489 705 1 591 333

121+ days 6 574 690 2 468 095

Total 13 296 460 9 489 669

There were no impairment losses.



16.7 LIQUIDITY RISK MANAGEMENT

Liquidity risk refers to the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. Management are satisfied that the agency will be able to settle their financial liabilities and lease liability in the normal course of business. The liquidity ratio current assets vs. current liabilities is 1.46:1.

The following are the financial liabilities at reporting date. Disclosure is at carrying amount:

31 MARCH 2019 NOTES

Carrying amounts

R<30 days

R1 - 6 months

R6 - 12 months

R1+ years

R

Trade and other payables 9 152 581 308 68 572 355 66 539 394 17 469 559 -

152 581 308 68 572 355 66 539 394 17 469 559 -

31 MARCH 2018

Trade and other payables 9 135 943 182 40 077 322 82 112 353 13 753 507 -

135 943 182 40 077 322 82 112 353 13 753 507 -

17. RELATED PARTIES

RELATIONSHIPS NAME OF RELATED PARTY

Controlling entity Department of Small Business Development

National Department and Entities within the national sphere of government

Department of Communication & Information Systems

Department of Higher Education

Department of Labour

Department of Trade and Industry


17. RELATED PARTIES (CONTINUED)2019

R2018

R

During the year the entity in the ordinary cause of business entered into various transactions with related parties. Transactions entered into and balances outstanding between these parties are as follows:

RELATED PARTIES BALANCES

Department of Small Business Development (38 368 574) (64 716 208)

Department of Communication & Information Systems 499 790 31 110

Department of Higher Education (BESD project) 393 281 (1 811 416)

Department of Labour (1 041 909) (1 062 593)

Department of Trade and Industry (2 265 900) (2 265 900)

RELATED PARTIES TRANSACTIONS

Department of Small Business Development (government grant) (724 863 000) (721 912 000)

Department of Small Business Development or Department of Trade and Industry (specific projects) (117 395 815) (43 917 723)

Department of Higher Education (BESD project) (2 249 618) (17 139 176)

Department of Labour 1 041 909 1 062 593

Notes:

• Remuneration of the Board of Directors is disclosed in note 14.

• Remuneration of Key Management is disclosed in note 18.

• Department of Higher Education. This amount is for the Basic Entrepreneurial Skills Development (BESD) project received through the National Skills Fund.

• Department of Labour. This amount relates to Workmen’s Compensation


18. REMUNERATION OF KEY MANAGEMENT

PAYMENTS MADE TO SEDA’S EXECUTIVE MANAGERS FOR THE YEAR ENDED 31 MARCH 2019

No Name Salary

Contributions to Provident Fund and Medical Aid

Performance bonus Travel allowance

Cell phone allowance

Re- imbursements

Other (long service award)

TOTALR

1 Jobodwana B * 826 623 169 816 156 197 - 14 400 2 536 281 512 1 451 084

2 Gwala-Mahaye, P * 1 547 920 85 510 163 065 - 21 600 1 501 - 1 819 596

3 Khonkwane, N * 1 553 490 49 817 222 362 - 21 600 16 938 - 1 864 207

4 Majola, PN * 1 360 039 241 108 163 065 - 21 600 2 749 - 1 788 561

5 Mzizi, N * 999 679 252 709 192 713 348 375 21 600 10 621 - 1 825 697

6 Njenge, L * 819 772 29 864 216 154 40 100 9 000 4 472 - 1 119 362

7 107 523 828 824 1 113 556 388 475 109 800 38 817 281 512 9 868 507

* Including performance bonus in respect of 2017/18.

1 B Jobodwana - Acting CSIO from September 2018 to 31 March 2019.

6 L Njenge - CSIO - resigned 31 August 2018.

PAYMENTS MADE TO SEDA’S EXECUTIVE MANAGERS FOR THE YEAR ENDED 31 MARCH 2018

No Name Salary

Contributions to Provident Fund and Medical Aid

Performance bonus Travel allowance

Cell phone allowance

Re- imbursements

Other (long service award)

TOTALR

1 Gwala-Mahaye, P * 1 450 525 79 157 165 827 - 21 600 4 317 - 1 721 426

2 Khonkwane, N * 1 461 088 39 526 137 957 - 21 600 12 901 - 1 673 072

3 Majola, PN * 1 271 949 227 109 137 957 - 21 600 1 336 - 1 659 951

4 Mzizi, N * 905 566 245 250 221 567 348 375 21 600 6 530 - 1 748 888

5 Njenge, L * 1 557 854 60 815 139 339 96 240 21 600 7 703 7 000 1 890 551

6 646 982 651 857 802 647 444 615 108 000 32 787 7 000 8 693 888

* Including performance bonus in respect of 2016/17.


19. MEDICAL AID AND RETIREMENT BENEFITS2019

R2018

R

The total amounts paid towards medical aid of 508 (507) employees for the period and retirement benefits of 664 (661) employees for the period are as follows:

Medical Aid 22 803 039 21 394 780

Short term portion 22 803 039 21 394 780

Long term portion - -

Provident Fund 29 257 368 27 845 612

Short term portion 29 257 368 27 845 612

Long term portion - -

TOTAL 52 060 407 49 240 392

20. TAX STATUS

Seda is exempt from income tax in terms of section 10 (1)(cA) of the Income Tax Act, 1962.

Seda is exempted from VAT registration.

21. RECLASSIFICATION OF PROVISION

A) THE PROVISION FOR LOSS OF ASSETS HAS BEEN RE-CLASSIFIED FROM ACCOUNTS PAYABLE TO PROVISIONS.

Statement of Financial Position

Accounts payable

As previously stated - 136 048 380

Provision for loss of assets - (105 198)

Accounts payable - re-classified for 2017/18 - 135 943 182


21. RECLASSIFICATION OF PROVISION (CONTINUED)2019

R2018

R

Provisions


Provision for loss of assets - 105 198

Provisions - re-classified for 2017/18 - 35 018 473

Notes to Cash Flow Statement

Changes in working capital

As previously stated - (75 504 252)

Decrease in accounts payable - (105 198)

Increase in provisions - 105 198

Changes in working capital - re-classified for 2017/18 - (75 504 252)

22. RETROSPECTIVE RESTATEMENT OF PRIOR PERIOD ERRORS

Irregular expenditure has been understated in previous year relating to operation leases. This irregular expenditure has now been recognised which resulted in the restatement of prior year figures in note 25.

NOTE ON IRREGULAR EXPENDITURE

Irregular expenditure


Irregular expenditure - operating leases - 484 140

Irregular expenditure- restated for 2018 - 41 546 490


23. SEGMENT REPORTING

2019

Revenues from non-exchange

allocations R

Revenues from exchange

transactions R

Total RevenueR

Total expenditure

R

Net surplus / (Deficit)(note 1)

R

Non-current assets

R

National Office (including STP) 365 715 459 108 107 393 473 822 852 (445 192 945) 28 629 907 14 319 893

Provinces 359 147 541 45 243 511 404 391 052 (387 635 324) 16 755 728 25 141 049

Eastern Cape province 40 943 541 4 054 108 44 997 649 (50 703 005) (5 705 356) 3 295 775

Free State province 39 960 447 3 078 754 43 039 201 (41 549 586) 1 489 615 3 057 971

Gauteng province 27 198 711 11 359 348 38 558 059 (34 073 751) 4 484 308 1 378 189

Kwa-Zulu Natal province 45 833 178 7 592 073 53 425 251 (49 307 839) 4 117 412 2 102 207

Limpopo province 40 648 639 4 293 038 44 941 677 (42 997 257) 1 944 420 2 355 061

Mpumalanga province 35 859 702 3 636 737 39 496 439 (37 738 742) 1 757 697 2 657 723

Northern Cape province 38 130 360 2 248 765 40 379 125 (33 436 603) 6 942 522 2 535 862

North West province 36 998 832 6 145 907 43 144 739 (41 016 880) 2 127 859 3 306 165

Western Cape province 53 574 131 2 834 781 56 408 912 (56 811 661) (402 749) 4 452 096

TOTAL 724 863 000 153 350 904 878 213 904 (832 828 269) 45 385 635 39 460 942

NOTE:

1. Explanations of the net surplus and deficit amounts are covered in context under the Statement of Budget and Actual Information.

2. The allocation of resources to the provinces depends on the number of branches, staff, activities etc.

Refer to note 1.18


23. SEGMENT REPORTING (CONTINUED)

2018

Revenues from non-exchange

allocations R

Revenues from exchange

transactions R

Total RevenueR

Total expenditure

R

Net surplus / (Deficit)(note 1)

R

Non-current assets

R

National Office (including STP) 365 105 215 71 793 839 436 899 054 (412 573 811) 24 325 243 19 728 082

Provinces 356 806 785 6 799 001 363 605 786 (357 284 946) 6 320 840 30 031 336

Eastern Cape province 48 100 974 502 335 48 603 309 (50 428 227) (1 824 918) 4 051 441

Free State province 37 830 918 181 821 38 012 739 (37 788 684) 224 055 3 709 968

Gauteng province 26 300 291 2 360 228 28 660 519 (27 615 757) 1 044 762 1 631 222

Kwa-Zulu Natal province 40 458 842 2 439 667 42 898 509 (42 374 975) 523 534 2 561 325

Limpopo province 39 069 317 210 938 39 280 255 (37 772 574) 1 507 681 2 850 151

Mpumalanga province 34 596 636 137 100 34 733 736 (33 753 909) 979 827 3 094 234

Northern Cape province 35 155 532 727 988 35 883 520 (32 585 536) 3 297 984 3 313 253

North West province 35 881 963 138 629 36 020 592 (35 373 652) 646 940 3 822 918

Western Cape province 59 412 312 100 295 59 512 607 (59 591 632) (79 025) 4 996 824

TOTAL 721 912 000 78 592 840 800 504 840 (769 858 757) 30 646 083 49 759 418

NOTE:

1. Explanations of the net surplus and deficit amounts are covered in context under the Statement of Budget and Actual Information.

2. The allocation of resources to the provinces depends on the number of branches, staff, activities etc.

Refer to note 1.18


24. FRUITLESS AND WASTEFUL EXPENDITURE2019

R2018

R

Opening balance 1 157 409 199 140

Add: Fruitless and wasteful expenditure – current year 935 270 682 141

Add: Fruitless and wasteful expenditure – prior years - 368 636

Less: Fruitless and wasteful expenditure (noted and cleared in accordance with policies and procedures) (1 157 409) (92 508)

Closing balance 935 270 1 157 409

a) Interest paid mainly for telecommunication accounts, amounting to R6 917.

b) A client of Seda (TTF programme) colluded with the service provider to utilise funds allocated for other purposes. Amount R323 560.

c) Seda employees who transgressed policies and procedures. Amount R27 853.

d) Seda paid for clients to travel overseas to exhibit their goods who did not attend. Amount R286 454.

e) Transport of goods to CISMEF, in China were not exhibited. Amount R284 048.

f) Candidate for interview, due to unforeseen circumstances, did not attend interview. Cost of R6 438 relates to flight booking and car hire.

Internal controls were reviewed or implemented to prevent occurrence and corrective actions were taken in line with Seda’s policies.

25. IRREGULAR EXPENDITURE RESTATED

Opening balance 41 546 490 23 375 833

Add: Irregular expenditure current year 333 704 1 344 131

Add: Irregular expenditure prior year - 34 725 873

Less: Amounts noted and cleared in accordance with policies and procedures (852 639) (17 899 347)

Closing balance 41 027 555 41 546 490


25. IRREGULAR EXPENDITURE (CONTINUED)

Details of irregular expenditure - current year:

Disciplinary steps taken / criminal proceedings and

remedial actions

2019R

2018R

a) Operating leases paid after expiry of lease contracts Note 1 239 909 1 332 366

b) Transgression of procurement process Note 2 93 795 -

c) Remuneration of Board members in the Public Sector Note 3 - 11 765

333 704 1 344 131

Details of irregular expenditure - prior year amounts identified in the current year:

c) National Gazelle programme - amount approved by management without complying with procurement process Note 3 - 34 725 873

- 34 725 873

NOTES:

1. Due to negotiations not completed within the prescribed timeline - Seda paid for operating leases in some of the offices in the provinces where the lease contract had already expired. Corrective actions were taken to prevent this from happening in future.

2. Transgression of procurement processes relates to 2 cases where employees transgressed on the procurement process to be followed up and cleared.

3. The previous year’s irregular expenditure amount of R40 933 760 mainly from the National Gazelle programme will be cleared once the expenditure is condoned as the corrective actions were taken by the Board of Directors.

26. EVENTS AFTER THE REPORTING DATE OF 31 MARCH 2019

The Executive Authority has appointed new Board of Directors of Seda effective from June 2019 to replace the current Board of Directors; whose term of office has lapsed. The Annual Financial Statements were authorised for issue by the Board of Directors on 30 July 2019. A new Executive Authority was appointed for the Department of Small Business Development in May 2019.


SEDA PROVINCIAL OFFICES

ANNEXURE A


1 PORT ELIZABETH 2 EAST LONDON 3 MTHATHA 4 MOUNT AYLIFF 5 QUEENSTOWNNelson Mandela Bay Amathole OR Tambo Alfred Nzo Chris Hani

CENTRE SECTOR PROVINCE CONTACT NUMBERChemin, Port Elizabeth Chemical Industry Port Elizabeth, Eastern

Cape 010 594 0641

Chemin, East London Chemical Industry East London, Eastern Cape

010 594 9843

Furntech Mthatha Furniture Manufacturing Mthatha, Eastern Cape 047 531 1840

Seda Construction Incubator (SCI), Mthatha Construction Mthatha, Eastern Cape 047 531 1840

Seda Construction Incubator (SCI), Port Elizabeth Construction Port Elizabeth, Eastern Cape

041 486 2595

Seda Construction Incubator (SCI) East London Construction East London, Eastern Cape

087 373 0801

Seda Nelson Mandela Bay ICT Incubator (SNII) ICT Port Elizabeth, Eastern Cape

041 409 8600

Seda Alfred Nzo Agro Manufacturing Incubator (SANAMI) Agro Processing Mount Ayliff, Eastern Cape

087 285 1556

Zenzele Technology Demonstration Centre Makana Small-Scale Mining Grahamstown, Eastern Cape

011 709 4674

EASTERN CAPE

12

3

4

5


1 TROMPSBURG 2 BLOEMFONTEIN 3 WELKOM 4 PHUTHADITJABA 5 KROONSTAD

Xharep Mangaung Lejweleputswa Thabo Mofutsanyane Fezile Dabi

CENTRE SECTOR PROVINCE CONTACT NUMBERSeda Agricultural & Mining Tooling Incubator (SAMTI) Mining & Agriculture Tooling Bloemfontein,

Free State051 507 3483

Motheo TVET Colleage Rapid Incubator Fashion and Jewellery Design Bloemfontein, Free State

051 406 9344

FREE STATE

4

1

2

3

5


1 EKURHULENI 2 JOHANNESBURG 3 PRETORIAEkurhuleni City of Johannesburg City of Tshwane

CENTRE SECTOR PROVINCE CONTACT NUMBERChemin, Mogale City Chemin Industry Mogale City, Gauteng 010 594 9841

EgoliBio Biotech Pretoria, Gauteng 012 844 0724

Furntech Johannesburg Furniture Manufacturing Johannesburg, Gauteng 011 672 9210

Lepharo Copper, Zinc and Base Metals Springs, Gauteng 011 363 3920

Seda Automotive Technology Centre (SATEC) Automotive Industry Rosslyn, Gauteng 012 700 0698/9

Seda Construction Incubator (SCI), Mogale City Construction Mogale City, Gauteng 011 052 6611

Seda Construction Incubator (SCI), Ekurhuleni Construction Ekurhuleni, Gauteng 011 394 0015

Seda Construction Incubator (SCI), Tshwane Construction Pretoria West, Gauteng 012 373 5890

Seda Essential Oils Business Incubator (SEOBI) Essential Oils-Plant Cultivation & Oil Distil-lation

Pretoria, Gauteng 012 808 3061

South Africa Manufacturing Technology Demonstration Centre (SMTDC)

Small-Scale Manufacturing Soshanguve, Gauteng 012 793 1066

SoftstartBTI (SBTI) ICT Midrand, Gauteng 011 695 4800

Zenzele Technology Demonstration Centre Small-Scale Mining Randburg, Gauteng 011 709 4674

Secopa Bathung Mix Manufacturing Soweto, Gauteng 087 351 8292

Global Jewellery Academy Jewellery Manufacturing Lenasia, Gauteng 011 857 1426

Ekurhuleni Jewellery Incubator Jewellery Manufacturing Ekurhuleni, Gauteng 011 825 5822

Bakery and Food Technology Incubator of South Africa Food Technology Industry Pretoria, Gauteng 012 803 1222

Ekurhuleni West TVET College Rapid Incubator Mixed Manufacturing Katlehong, Gauteng 011 353 1600

Seda Construction Incubator (SCI), Nelmaphius Construction Pretoria, Gauteng 012 346 6020

GAUTENG

12

3


1 PORT SHEPSTONE 2 IXOPO 3 PIETERMARITZBURG

Ugu Sisonke uMgungundlovu

4 RICHARDS BAY 5 LADYSMITH 6 NEWCASTLE

Uthungulu Uthukela Amajuba

CENTRE SECTOR PROVINCE CONTACT NUMBERChemin, Durban Chemical Industry Durban, KwaZulu-Natal 010 594 9842

Downstream Aluminium Centre for Technology (DACT) Aluminium Fabrication & Casting Richard’s Bay, KwaZulu-Natal

035 797 1500

Furntech Durban Furniture Manufacturing Durban, KwaZulu-Natal 031 579 1896

Furntech Umzimkhulu Furniture Manufacturing Umzimkhulu, KwaZulu-Natal

039 259 0993

INVOTECH Mixed High-Tech Durban, KwaZulu-Natal 031 201 5788

Seda Construction Incubator (SCI), Durban Construction Durban, KwaZulu-Natal 031 368 1207

Seda Construction Incubator (SCI) Dundee Construction Umzimkhulu, KwaZulu-Natal

034 212 2074

Seda Construction Incubator (SCI) Kwa-Mashu Construction Kwa-Mashu, KwaZulu-Natal

031 503 5225

Seda Essential Oils Business Incubator (SEOBI) Essential Oils-Plant Cultivation & Oil Distil-lation

Nkandla, KwaZulu-Natal 035 833 0479

Smartxchange ICT Durban, KwaZulu-Natal 031 307 1998

Esayidi TVET College Rapid Incubator ICT Port Sheptone, KwaZulu-Natal

039 685 5482

Smartxchange ICT Port Sheptone, KwaZulu-Natal

039 682 0631

KWAZULU-NATAL

1

2

4

3

5

6


1 MAKOPANE 2 JANE FURSE 3 POLOKWANE 4 TZANEEN 5 THOHOYANDOU

Waterberg Greater Sekhukhune Capricorn Mponi Vhembe

CENTRE SECTOR PROVINCE CONTACT NUMBERMapfura Makhura Incubator (MMI) Bio-Fuels Plant Production & Processing Marble Hall, Limpopo 013 268 9324

Seda Limpopo Jewellery Incubator (SLJI) Jewellery Manufacturing Polokwane, Limpopo 015 293 0319

Vhembe TVET College Rapid Incubator Mixed Manufacturing Thohoyandou, Limpopo 015 963 3156

LIMPOPO

1

2

3

5

4


1 SECUNDA 2 EMALAHLENI 3 MALELANE 4 NELSPRUIT 5 BUSHBUCKRIDGE

Gert Sibande Nkangala Nkomazi Ehlanzeni Bushbuckridge

CENTRE SECTOR PROVINCE CONTACT NUMBERFurntech White River Furniture Manufacturing White River, Mpumalanga 013 750 3066

Mobile Agri-Skills Development & Training (MASDT) Agricultural Capacity Building Nelspruit, Mpumalanga 013 753 2470

Mpumalanga Stainless Steel Initiative (MSI) Stainless Steel Processing Middelburg, Mpumalanga 013 246 1528

Timbali Floriculture Nelspruit, Mpumalanga 013 753 2412

Ehlanzeni TVET College Rapid Incubator Renewable Technologies Nelspruit, Mpumalanga 013 752 7105

MPUMALANGA

1

23

5

4


1 SPRINGBOK 2 DE AAR 3 UPINGTON 4 KIMBERLEY 5 KURUMAN

Namakwa Pixley ka Seme Siyanda Frances Baard John Taolo Gaetsewe

CENTRE SECTOR PROVINCE CONTACT NUMBERNorthern Cape Diamond and Jewellery Incubator Jewellery Kimberley, Northern Cape 053 831 1570

Northern Cape Rural TVET College Rapid Incubator Construction De Aar, Northern Cape 054 332 4711

NORTHERN CAPE

12

3

4

5


1 VRYBURG 2 KELRKSDORP 3 MAFIKENG 4 RUSTENBURG 5 BRITS

Dr Ruth Segomotsi Dr Kennith Kaunda Ngaka Modiri Molema Bojanala West Bojanala EastMompati

CENTRE SECTOR PROVINCE CONTACT NUMBERSeda Platinum Incubator (SPI) Platinum Jewellery Rustenburg, North West 014 597 0736

Orbit TVET College Rapid Incubator Automotive Rustenburg, North West 014 597 5536

NORTH WEST

21

3

4 5


1 BELLVILLE 2 STELLENBOSCH 3 GEORGE

City of Cape Town Cape Winelands Eden

CENTRE SECTOR PROVINCE CONTACT NUMBERSouth Africa Renewable Business Incubator (SAREBI) Renewable Energy Atlantis, Western Cape 021 577 2719

Furntech Cape Town Furniture Manufacturing Cape Town, Western Cape 021 510 0088

Furntech, Nyanga Furniture Manufacturing Cape Town, Western Cape 021 201 7542

False Bay TVET College Rapid Incubator Metal Fabrication and Boat Building Muizenburg, Western Cape 021 003 0600

SAVANT Advanced Manufacturing Cape Town, Western Cape 021 418 9010

WESTERN CAPE

1

2

3


PROVINCE OFFICE NAME AND LOCATION NAME ADDRESS PHONE/FAX/CELL NUMBERS EMAIL ADDRESS

EASTERN CAPE

Provincial Office East London

Siphiwo Soga Provincial Manager

No 4 Scherwitz Rd Berea East London

043 706 6700/1/2/3 (T)043 721 1652 (F)082 851 8912(C)

[email protected]

Provincial Office East London

Ntombozuko Somtunzi Operations Manager

No 4 Scherwitz Rd Berea East London

043 706 67001/2/3 (T)043 721 1652 (F)082 958 2561 (C)

[email protected]

FREE STATE

Provincial Office Bloemfontein

Jackie Ntshingila Provin-cial Manager

Telkom Building Block B First Floor Nelson Mandela Road Bloemfontein

051 411 3820 (T)051 444 4235 (F)082 801 0008 (C)

[email protected]

Provincial Office Bloemfontein

Boijane Mshumpela Operations Manager

Telkom Building Block B First Floor Nelson Mandela Road Bloemfontein

051 411 3820 (T)051 444 4235 (F)073 204 2002 (C)

bmshumpela@seda. org.za

GAUTENG

Provincial Office Johannesburg

Colin Leshou Provincial Manager

Second Floor Forum 5 Braampark 33 Hoofd Street, Braamfontein Johannesburg

011 408 6528 (T)072 019 5996 (C) [email protected]

Provincial Office Johannesburg

Colin Francis Operations Manager

Second Floor Forum 5 Braampark 33 Hoofd Street, Braamfontein Johannesburg

011 408 6528 (T)082 894 8841 (C) [email protected]

KWAZULU-NATAL

Provincial Office Durban

Cedric Mnguni Provincial Manager

381 Berea Road Durban

031 277 9500 (T)031 277 9510 (F)082 920 5154 (C)

[email protected]

Provincial Office Durban

Nkululeko Kunene Operations Manager

381 Berea Road Durban

031 277 9500 (T)031 277 9510 (F)076 826 0995 (C)

[email protected]

LIMPOPO

Provincial Office Polokwane

Koenie Slabbert Provincial Manager

Second Floor Suite 6 Maneo Building73 Biccard Street Polokwane

015 287 2940 (T)015 297 4022 (F)083 378 6289 (C)

[email protected]

Provincial Office Polokwane

Martin Rafferty Operations Manager

Second Floor Suite 6 Maneo Building73 Biccard Street Polokwane

015 297 1139 (T)015 297 4022 (F)082 561 6147 (C)

[email protected]

SEDA PROVINCIAL OFFICES CONTACT DETAILS


PROVINCE OFFICE NAME AND LOCATION NAME ADDRESS PHONE/FAX/CELL NUMBERS EMAIL ADDRESS

MPUMALANGA

Provincial Office Nelspruit

Mashiba Kgole Provincial Manager

Suite 102 Bi-water Building 16 Brander StreetNelspruit

013 755 6046/7 (T)013 755 6043 (F)082 565 6935 (C)

[email protected]

Provincial Office Nelspruit

Phumzile Mnisi Operations Manager

Suite 102 Bi-water Building 16 Brander StreetNelspruit

013 755 6046 (T)013 755 6043 (F)082 466 9786 (C)

[email protected]

NORTHERN CAPE

Provincial Office Kimberley

Kedisaletse Williams Provincial Manager

13 Bishop Avenue Sanlam Building Kimberley

053 839 5700 (T)053 839 5711 (F)082 304 1970 (C)

[email protected]

Provincial Office Kimberley

Oupa Kale Operations Manager

13 Bishop Avenue Sanlam Building Kimberley

053 839 5700 (T)053 839 5711 (F)082 259 0658 (C)

[email protected]

NORTH WEST

Provincial Office Rustenburg

Neville Maimane Provincial Manager

214 Beyers Naude Street Rustenburg

014 591 7900 (T)014 592 9734 (F)082 887 1942 (C)

[email protected]

Provincial Office Rustenburg

Neo Rampagane Operations Manager

214 Beyers Naude Street Rustenburg

014 591 7900 (T)014 592 9734 (F)083 282 0662 (C)

[email protected]

WESTERN CAPE

Provincial Office Cape Town

Alex Qunta Provincial Manager

Sixth Floor The Pinnacle 2 Burg StreetCape Town

021 487 3640 (T)085 494 0273 (C)

[email protected]

Provincial Office Cape Town

Thabang Mpalami Operations Manager

Sixth Floor The Pinnacle 2 Burg StreetCape Town

021 487 3640 (T)082 430 4344 (C)

[email protected]


NOTES

SED

A A

NN

UA

L RE

PORT

201

8/19

SEDA NATIONAL OFFICEThe Fields, Office Block A, 1066

Burnette Street, Hatfield, 0083,PretoriaPO Box 56714, Arcadia, 0007

T: +27 12 441 1000 | F: +27 12 441 2064

NATIONAL INFORMATION CENTRET: 0860 103 703 | E: [email protected]

Website EnquiriesE: [email protected]

RP176/2019ISPN: 978-0-621-47452-7

ANNUAL REPORT

2018/19

!SEDA Cover_220819.indd 1 2019/08/27 09:54

SEDA ANNUAL REPORT 2018/19 · SEDA | ANNUAL REPORT 2019 5 GENERAL INFORMATION REGISTERED NAME Small Enterprise Development Agency (Seda) PHYSICAL ADDRESS The Fields, Office Block

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