Development financier improves its loan portfolio to the province’s youth.
Although provincial budget cuts resulted in Eastern Cape Development Corporation (ECDC) securing R226 million, which was less than the required funding for 2009/10, the corporation achieved a 49 percent increase in loans disbursed to youth in the previous period. 345 of the 907 ventures financed in the 2009/10 period are youth owned.
ECDC’s long-term loans manager Alfred Mamafha says: “The increase is due to the corporation’s effort to support ventures owned by young people, women and previously disadvantaged groups.”
Onke Mankahla, a partner in three Debonairs franchises in Mthatha, is one of the budding youth entrepreneurs financed by ECDC.
Two Debonairs outlets partly financed by ECDC
Mankahla and partner, Sicelo Mntonga, first approached ECDC for the acquisition of two existing Debonairs outlets in Mthatha for R2,8m funding of which ECDC financed R2,2m.
With a dream to be a franchisor, Mankahla says: “The fast food market has been overlooked in Mthatha, yet our investment has paid off handsomely.”
Since their take-over, turnover has doubled. Their Mthatha Plaza branch came out tops in the Eastern Cape in Debonairs’ service awards and was voted second nationally. The award for the national competition was an all-expenses paid trip to Argentina.
The good performance led to the identification of a third store, of which ECDC financed R1,6 m.
ECDC assisting Siwandla family with their Build It franchise
Eastern Cape Development Corporation (ECDC) has given the Siwandla family the building blocks to success with R3, 5 million funding to buy a Build It franchise.
The mother and son team, Mandisa and Anele Siwandla of Qumbu in the OR Tambo District say they were inspired to buy a Build It franchise because even rural clients demand quality certified building material.
There is more on the cards as the pair plan an expansion for brick yard and crushed stone to meet demand.
Mthatha-based ECDC account manager Bulelwa Mahamba says: “It is rewarding to be of assistance to entrepreneurs that clearly demonstrate quality managerial expertise. These entrepreneurs are good role models for youth pursuing opportunities in business.”