27 May 2008

By Nangamso Mabindla

EMERGING entrepreneurs in Buffalo City received a major boost with the opening of a Small Business Enterprise Development Centre by banking group Absa in East London on Thursday, 15 May.

The centres are a nationwide initiative to ensure that the programme benefits small and medium enterprises (SMEs) throughout the country. The East London centre is the first of these in Eastern Cape province.

Designed to bring a range of business expertise to the area, the centre will benefit emerging businesses. The opening was attended by the Buffalo City municipal manager, Gaster Sharpley; the Border Kei Chamber of Business chief executive, Les Holbrook; the Small Enterprise Development Agency Eastern Cape regional manager, Luzuko Dibi; and Absa representatives.

The bank's general manager for market development, Obakeng Khutsoane, said the company was committed to playing a meaningful role in stimulating economic growth in the country by supporting the local small business community.

"As a bank, we discovered that SMEs are lacking in critical business skills such as financial management, taxation and ways to access the markets they operate in. With this centre we are aiming at capacitating SMEs by advising and mentoring them in general business management and access to finance."

He said that the bank would work closely with its partners to ensure that this initiative was a success. These partners included the Eastern Cape Development Corporation, Khula Enterprise, Small Enterprise Development Agency, Buffalo City, Msobomvu Youth Fund and other funding institutions.

"We will have micro loans to provide previously disadvantaged people with banking opportunities. We have already opened one at the Mdantsane City Mall."

Sharpley thanked Absa for the initiative and pledged the City's support in creating an environment conducive to business success.

"Last year, we adjusted our procurement policy to ensure that we encouraged SMEs to do business with the City. This centre will be of great help in molding SMEs so that they [will be able to get] their share of our R1,1-billion capital budget."

Holbrook said that the chamber was already involved in initiatives aimed at sharing business information with SMEs. "We do this through information sharing sessions, where big business representatives are invited to share information with SMEs," he said, adding that he was optimistic the centre would be a success.

"We are currently lobbying for the support of the refurbishment of the R72, the coastal road between East London and Port Elizabeth, to promote economic development between the Nelson Mandela Metro and Buffalo City … We will support [the centre]."

Source: BuffaloCity.gov.za