Uzenzele Holdings
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Monday | 08:00 am - 05:00 pm |
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Tuesday | 08:00 am - 05:00 pm |
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Wednesday | Closed | 08:00 am - 05:00 pm |
Thursday | 08:00 am - 05:00 pm |
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Friday | 08:00 am - 05:00 pm |
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Saturday | Closed |
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Sunday | Closed |
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Public Holidays | Closed |
NEWS BLOG
![What the SONA and Budget Speech mean for South African SMEs in 2017](/images/ehM6dJoFjAQ2u8hr/news/vLVclyhJye7JbrGc_fs.jpg)
What the SONA and Budget Speech mean for South African SMEs in 2017
8 March 2017 by Zahra Rawjee
This year’s SONA was marked by the President’s announcement of plans for “radical socioeconomic transformation”.
The budget speech, delivered by the Minister of Finance on Wednesday, gave us a more tangible idea of what this will mean for businesses. Both stressed the continued challenge posed by the divide between the previously advantaged and disadvantaged, and the policies they announced continue the push of the National Development Plan to narrow that gap.
The new top personal income tax rate of 45% for those with taxable incomes above R1.5 million may have a negative effect on investment. However, the rising prices of both food and fuel are likely to have a larger impact on SMEs, as the increased pressure on low- to medium-income households may drastically erode their purchasing power.
This may leave South Africa vulnerable to international political and economic crises if we do not shift our economy to be more inclusive, since we are traditionally reliant on exports. Inclusive growth requires productive employment rather than direct income redistribution as a means of increasing income for excluded groups, and there are concerns that this issue continues to be widespread despite efforts from government to attempt stimulating industry in South Africa through incentives and support programs. R4.2 billion has been allocated to industrial development in special economic zones and a further R3.9 billion for scientific and industrial research.
Food security continues to be a concern as food prices have risen by 16.5% in the past twelve months. The devastating drought, continued farm attacks, and aging farmer-population have all contributed to the result that half of the farms in the country are on the market. However, there is good news for the industry as Minister Gordhan announced that R1.7 billion will be allocated for specific food production initiatives through government grants.
The agro-processing industry has long been a focus area for growth with little uptake, similar to mineral benefician, South Africa is simply not adding value to its primary production base. Agro-processing provides the opportunity for both local and export markets and is a contributor to the needed job creation.
Fortunately, the services sector saw impressive growth and has been critical in curbing unemployment levels. Within the service sector, the Business Process Outsourcing (BPO) Incentives continue to have an uptake from foreign entities bringing their call centers to South Africa.
South Africa clearly faces many economic challenges, but government’s commitment to nurturing SMEs – as set out in the NDP – is ongoing, with the 2017 budget allocating R3.9 billion over the MTEF period to encourage SME growth. Whilst specifics were not highlighted, it is expected that barriers of equity and suretyship will still hinder access to these funds which provides a market for those who are formally employed to partner with entrepreneurs, who may not have access to these critical elements required, to catalyse investment.
Tax incentives are in place to encourage mutually beneficial partnerships. The Employment Tax Incentive has been extended, though there is disappointment that the same was not done for the 12I Tax incentive which ends in December. The Manufacturing Competitiveness Enhancement Program – which helped the struggling manufacturing sector – also remains suspended due to a lack of funding.
True empowerment and transformation can only happen through the transfer of both equity capital and skills to operational partners of colour. With dwindling incentives, it is more important than ever that these partners be willing to work for their piece of the pie and be able to attract developmental capital.
As Moeletsi Mbeki, stated on a WITS Business School panel discussing the SONA: “South Africa has for the past 150 years…been in an Afrikaner- and African-nationalist mode. Both these nationalisms have reached the end of their road, and they have nothing to contribute to the future of South Africa.”
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ABOUT US
We help you, as a business, access your portion of the billions of Rand that the South African Government has allocated to supporting businesses with grants and loans; impacting your bottom line and enhancing your balance sheet.
We help you identify the funds applicable to your business and its growth plans, ensuring time-saving and higher success rates.
Uzenzele Holdings (UH) prides itself as a business-driven business; utilising real life experiences and knowledge for each client. UH has specialist consultants with over 56 years of combined experience in business development and accessing governmental funding, saving you time that should be spent running your own business. Leave the technicalities and administration of government funding to us, increasing your chance of successfully accessing your piece of the billions set aside each year to help businesses just like yours.
Zahra Rawjee has been involved with, and had exposure to, various industries and businesses in shareholder, director and management executive capacities due to a range of family interests within South Africa and abroad. Her skills lie in business and contract analysis, training and facilitation, as well as access to developmental funding. Zahra also holds a BCom degree in Law from the University of Pretoria.
adia Rawjee has experience in industries ranging from FMCG to manufacturing and mining because of family interest and her involvement in an influential African network called Intra Business Network. Her skills lie in business analysis, business modelling and accessing developmental funding. She has a BCom degree in Finance and a BCom degree in Economics & Econometrics from the University of Johannesburg.
SERVICES
Access to Developmental Funding:
UH assists its clients with accessing developmental funding available through the various developmental funding institutions, including: DTI, IDC, and NEF.
Every year, billions of Rand are made available to businesses through these institutions. These tax-free funds are made available as grants and loans.
Often, many activities you are already funding within your business can attract these types of developmental funds. UH helps you determine which funds are relevant to your business and takes you through the process of applying to the various institutions; with knowledge and experience, we are able to take the headache and uncertainty out of applying for developmental funds.
Funding Matrix:
A Funding Matrix is a clear summary of the different funds available to your business from the DTI, IDC and NEF.
A top-level analysis of your business is carried out to understand your funding needs. These are then analysed against 30 different funds to determine which fund(s) is available to your business so that you can make the best choice for your business’ growth.
Business Strategy Workshop (BSW):
Only when you are certain about where your business is going, will you be able to plan out the route to get it there. This is a vital step that is often overlooked or left to become out-dated. If you do not have a clear written strategy for your business, this is an important step to take when deciding to access funding – to ensure that you are accessing funding that helps you achieve your business goals.
Needs Analysis Workshop (NAW):
Many businesses have developed their strategies and have a clear path to their goals. If this is the case, a Needs Analysis Workshop unpacks that strategy to understand your business’ funding needs within the strategy to ensure the maximum benefit for your business.
*Includes Funding Matrix
Enterprise Development Plan:
The new B-BBEE codes require businesses to engage in sustainable and effective Supplier and Enterprise Development (SED).As an EME (exempt micro enterprise) and QSE (qualifying small enterprise), you may be able to access funds and non-financial support from organisations that are looking to improve their B-BBEE score.
The key is to know how to present your business and help large enterprises understand the importance of providing you with support.
As a QSE or Large Enterprise, it is important to know how to implement effective and sustainable SED to ensure that your support not only helps smaller businesses grow, but also gives you the maximum benefit for your efforts.
Enterprise & Supplier Development
As part of UH’s focus on Enterprise Development, UH has been certified as one of the few UNDP Supplier Development Programme (SDP) Consultants.
The SDP is a UNDP initiative in collaboration with ABSA, to work together with countries to increase the competitiveness of value chains by assisting SMMEs to provide more and better products and services to large companies or large buyers.
It helps increase the value by diagnosing, evaluating and certifying SMMEs to be suppliers to large organisations or corporates using a 9-month in-depth intervention which follows a methodology that is based on world best practices. The methodology improves the quality, price, time of delivery, and services offered to large companies.
This aligns with the newly enforced BEE Codes of Good practice (May 2015) and UH is uniquely positioned to provide a tried and tested Supplier Development Programme to South African Large Businesses. UH can also leverage its capacity and capability with accessing finance through existing developmental funding institutions and funds such as the DTI, NEF, IDC and GEP, as well as the commercial partners of the SDP programme, ABSA. UH is thus able to create value for both the Supplier and the Large Business with a win-win approach.
Incentives
Investment Incentives and Treasury Grants are programmes that the government uses to promote business and economic growth by encouraging competitiveness, contributing to development and supporting job retention/creation in certain key industry sectors.
Development Loans support the working capital/cash flow requirements of established or growing businesses and can also be raised for the sale of shares for empowerment purposes, allowing you to gain value for your shares today and grow your contract-based business in the future with enhanced procurement status based on BBBEE.
MEET THE TEAM
![](/images/ehM6dJoFjAQ2u8hr/team/1502955756_Zahra.jpg)
Zahra Rawjee |
![](/images/ehM6dJoFjAQ2u8hr/team/1502955769_Nadia.jpg)
Nadia Rawjee |