Industrial Development Corporation (IDC) - Northern Cape NCEDA is promoting economic growth in the Northern Cape

Development Finance

Enterprising farmers and entrepreneurs are a key component in the Northern Cape’s economic strategy.

Agriculture, agri-processing and food security form central planks to provincial economic planning and strategy. The decline of diamond mining has made it even more imperative that small rural communities are able to feed themselves. Many of the provinces’ programmes to support small, medium and micro enterprises thus focus on agricultural production.

In line with its mission to uplift poorer communities, the National Development Agency (NDA) plays quite a prominent role in the Northern Cape. A skills-development project called Gautae Sedilweng (refined gold) has received the backing of the NDA. The agency’s R2.5-million funding will go towards establishing co-operatives, which will build hydroponic and compostmaking projects.

The investment priorities of the national Department of Science and Technology (DST) have ensured that the tiny hamlet of Onseepkans, on the banks of the Orange River, is now growing rose geraniums for profit. The DST and Council for Scientific and Industrial Research (CSIR) are supporting the project to develop rose-geranium essential oils.

Farmers and entrepreneurs living in the Succulent Karoo region of the province can apply to the Skeppies Fund, the funding arm of SKEP, the Succulent Karoo Ecosystem Programme. This initiative has the backing of the Development Bank of Southern Africa and several international conservation bodies. Skeppies is a ‘small-projects fund for conservation and development in the Succulent Karoo’ and applications are invited for any project for funding up to R140 000. Funding has been supplied to a project to introduce special breeds of dogs to protect sheep, tourism entrepreneurship, land reclamation and for schemes to cultivate the so-called ‘cancer bush’.

Northern Cape Economic Development Agency

NCEDA was established by the Northern Cape provincial government in partnership with the Industrial Development Corporation (IDC) to accelerate sustainable economic growth and development.
 The services offered by NCEDA include:
• Advising potential business owners on their business proposals
• Facilitating funding of projects and new businesses
• Linking new businesses to existing and prospective markets
• Preparing financials for business owners
• Development marketing and operational strategies

Some of the projects receiving support from NCEDA include t h e M y s t i c R i v e r W i n Trust in Kakamas, Desert Raisins, and the Kalahari Kid Goat and Goodhouse Paprika projects.

National Development Finance Institutions Development Bank of Southern Africa

The Development Bank of Southern Africa has approved loans of R29.8-billion since its inception in 1983. The focus of the bank is physical, social and economic infrastructural development.

Industrial Development Corporation

The Industrial Development Corporation (IDC) provides finance across a range of sectors from agriculture to tourism.

In the Northern Cape, the IDC has a 36.5% shareholding in Karsten Group Holdings, a diversified agricultural and exporting company with a primary focus on dates and table grapes. The company sold more than three million cartons in 2009 – a new record volume, which also secured for the company its highest profit. Karsten employs more than 4 000 people on a seasonal basis.

Through the IDC, a black economic empowerment project is under way at Kakamas, where emerging farmers are planting citrus. Other IDC projects in the province support ventures in barley and groundnuts, cut flowers, ferrochrome, alluvial diamonds and chrome chemicals.

Khula Enterpise Finance Ltd

Khula Enterpise Finance Ltd is a financing agency of the Department of Trade and Industry. It has ties with the public and private sectors, including banks, retail institutions and retail ventures. It aims to fill the gaps not addressed by commercial financial institutions. Khula will lend about R3-billion to SMMEs between 2009 and 2013 via a subsidiary called Khula Direct.

Land and Agricultural Development Bank of South Africa

The Land and Agricultural Development Bank of South Africa (Land Bank) offers financing to established farmers and emerging farmers.

National Empowerment Fund

The National Empowerment Fund (NEF) is an agency located with the national Department of Trade and Industry which is geared towards promoting broad-based black economic empowerment (BBBEE). A new initiative in 2009 saw the launch of an online business planner in five languages. Small businesses often have trouble developing business plans so this tool will help budding entrepreneurs in planning and presentation. A nine-step process includes cash-flow projections, managing financial statements, capital expenditure and balance sheets.

National Youth Development Agency

The National Youth Development Agency (NYDA) was launched on Youth Day, 2009, out of a merger of the Umsobomvu Youth Fund and the National Youth Commission. As a statutory body, the NYDA will be closely monitored in the way that it disburses its allocation of R1-billion during a three-year mandate. There is a full-service youth-advisory centre in Kimberley and several more located around the province at Kgalagadi, Letsemeng, Magareng, Pixley ka Seme, Tswaing and Vusulela.