The Eastern Cape Development Corporation (ECDC) says a total of 360 small businesses received loans and financial incentives worth R99,950 million while R91,6 million was leveraged for direct investment Micro, Small, and Medium Enterprises (MSMEs) in the 2023/24 financial year.

A total of 2,073 jobs were created through loan funding and financial incentives. This figure is comprised of 570 jobs created through loan funding and 1,503 jobs through financial incentives. In 2023/24, 1,007 enterprises received business support interventions. Of this number, 369 businesses received direct business development services. Furthermore, the ECDC facilitated investments of R1,032 billion for the Eastern Cape due to substantial investments in the renewable energy sector. The Corporation facilitated exports valued at R213 million in the 2023/24 financial year.

Announcing the ECDC’s 2023/24 financial year annual results today, ECDC chief executive officer Ayanda Wakaba says an amount of R81 million was also made available from the Eastern Cape Economic Development Fund to fund catalytic economic development projects, and for the extension of finance to Eastern Cape businesses, as well as priority sector value chain activation. A total of R60 million was leveraged through partnerships and co-funding agreements through economic development coordination and sector coordination, with 12 catalytic projects supported, while five feasibility studies with capex values of more than R50 million were conducted.

“During the 2023/24 financial year, the Corporation committed its resources to drive increased investment and trade, supporting small business growth, competitiveness, and productivity, improving sector coordination, and development, and transforming the property portfolio into a competitive industry and platform to activate vibrant local economic activity.

ECDC continued to maintain a careful balancing act between its development posture and sustainability imperatives. This resulted in the organisation maintaining its general financial health, with total assets exceeding total liabilities by R1,3 billion. ECDC also received a ninth successive unqualified audit opinion in 2023/24,” says Wakaba.

Wakaba says the R99,950 million disbursed to MSMEs through loans and financial incentives is comprised of R47 million in loans, R21,2 million was disbursed through the Imvaba Co-operatives Fund, R14,8 million through the Eastern Cape Jobs Stimulus Fund, R1,050 million from the Social Enterprise Replenishable Financial Support Programme and R15,9 million from the Small Towns, Township and Rural Enterprise Support Programme (STTREP).

The R47 million in loans went to 96 businesses. A loan collection rate of 80,2% was achieved in 2023/24. The supply and delivery services sector accounted for R33,5 million of the disbursements, R8,1 million went to those in agriculture, R5 million went to retail and R451,203 to the construction sector.

The Nelson Mandela Bay Metro received R18,6 million of the disbursements, R16,8 million went to businesses in the Amathole District, R8,5 million to those in the OR Tambo district, R1,8 million went to businesses in the Chris Hani District, R1,1 million went to those in the Alfred Nzo district and R261,687 to businesses in the Joe Gqabi district.

The ECDC also approved R22,1 million for disbursement to 51 cooperatives, with R21,2 million of the funds disbursed during the review period. The funds disbursed through the Imvaba Co-operatives Fund provide funding for the competitiveness and sustainability of primary co-operatives in the Eastern Cape.

The ECDC disbursed R14,8 million through the Jobs Stimulus Fund which it manages to incentivise the retention and saving of jobs in distressed businesses. The balance of R1,4 million was for working capital from prior year disbursements.

“The Corporation also facilitated the creation of 1,325 jobs through investment and trade promotion activities. Furthermore, 188 Eastern Cape businesses participated in export promotion activities organised by the ECDC during the review period.

In September 2023, ECDC hosted the 3rd Eastern Cape Investment Conference where R127 billion in new investment commitments into the Eastern Cape were announced from 18 investment declarations,” Wakaba says.

Wakaba says the property business is resilient and has responded positively to strategic interventions. ECDC recorded rental collection of 60% as a percentage of billing. Yields in the investment portfolio, exceeded the year’s target of 9% to 11,32%. The disposal of non-core assets and the refurbishment of properties should further improve yields in the new financial year.

“The Corporation’s capital raise programme received R136 million from the Eastern Cape government for the refurbishment of the property portfolio. The capital raise resulted in professional teams being appointed to the value of R65 million for 14 clusters of refurbishment projects in the 2023/24 financial year.

The Corporation is pleased that it raised R28,4 million from the disposal of non-core property assets in the period under review. The plan is to dispose of the remaining 109 non-core properties over the next two financial years. In the infrastructure management services programme, ECDC generated R8,1 million in fees from the implementation of external projects,” adds Wakaba.

Lastly, the ECDC’s economic development coordination and sector support programme develops relationships with public entities and industry associations, the private sector and social agencies to effectively use resources and funding. In 2023/24, the programme raised R60 million leveraged through partnerships and co-funding agreements. In addition, 12 catalytic projects were supported and five feasibility studies with capex values of more than R50 million were conducted.