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Limpopo Economic
Development Enterprise
EASTEN CAPE DEVELOPMENT
CORPORATION – 02 MAY 2011
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Presentation Outline
 Purpose of presentation
 Background
 Vision
 Mission
 Products & Services
 Targeted Sectors
 Pricing and
 Requirements.
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Purpose of the presentation
To highlight the developmental products
and services offered by LimDev to
SMME’s and Co-operatives within
Limpopo Province.
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Background
Mandate of LimDev in terms of the Act
(Northern Transvaal Corporations Act, Act
No.5 of 1994, Section 4)
Encourage
Plan
Finance
Coordinate
Promote
 Carry out development of the Province and its
people
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Our Vision
To be the pre-eminent catalyst and
partner in economic growth and
empowerment in the Limpopo Province.
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Mission of LimDev
Mission
TO Establish and advance a sustainable SMME
sector through the facilitation and provision of
business and investment opportunities
Main activities
SMME funding and contribution to economic
development
Providing guarantees and sureties. (subject to
Minister’s approval)
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PRODUCTS & SERVICES
SMME Development Finance
Project Development and
Property Management
Mining Development
Housing Development finance
Passenger Transport.
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Project Development and Property
Management Division
LimDev partners with SMME’s on property
development.
and
It also provide rental space for SMME
development(Large and Small Industries
and Shopping Complexes)
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Housing Development Finance
Risima Housing Finance is a 100%
subsidiary of LimDev.
It finance Rural and Urban development
And
It contribute towards SMME development
by procuring construction services from
building contractors.
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Mining Development
Corridor Mining Resources is a 100%
subsidiary of LimDev.
And
It goes into join-ventures with BBBEE in
mining projects
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Passenger Transport
Great North Transport in a 100%
subsidiary of LimDev and it provide public
transport.
and
It contribute to SMME development
through procurement services.
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SMME Development Finance
LimDev provide developmental finance to
SMMe’s,
and
Providing guarantees and sureties.
(subject to Minister’s approval)
SMME Development Finance is the core
business of LimDev
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Targeted Sectors Prioritized
 Manufacturing
 Mining
 Tourism
 Agriculture ( agro-processing )
 Construction
 Retailing
 Specialized Business Services
 Personal Services
 Transport.
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Types of Financial Products
The following are types of financial
products available for the SMMEs
in the Limpopo:
Working Capital Finance
Capital Expenditure Finance
Start up Capital Finance
Equity Capital Finance
Bridging Finance
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Working Capital Finance
 Purpose
Finance working capital
requirements
Stock and/or working materials
Administrative/Operating
Expenses
Term: 12 -36 months
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Capital Expenditure Finance
 Purpose
Finance capital expenditure
requirements (yellow assets)
Equipments and machinery
Term: 36- 60 months
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Start-up Capital Finance
Purpose
 Loan Finance of newly discovered business
ideas and opportunities
 Term
Max. of 36-84 months
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Equity Capital Finance
(BEE financing)
Purpose
 Finance purchase of equity/stake in existing businesses
 Term
Build-in exit strategy from beginning. Max. period : 3684 months
 Conditions: acquire board seats in the project
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Bridging/Procurement Finance
Product
 Purpose
 Cover for immediate demand in goods/services
Finance for procurement orders and contracts from
Government at National, provincial and local level
 Catering for increased demand during holidays and/or
pick periods.
Term: 3 months or period of the contract
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CHARGES
 Prime-linked interest rate.
Thus interest rate is controlled by the risk
factor (Min Prime less 3% and Max Prime
plus 2%)
 Admin fee of 1% limited to R2 500.00 (NCR)
OR R3 000.00 VAT inclusive depending on
the amount .
 Application fee of R500.00 OR R5 000.00
based on the amount requested.
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Requirements
The business must be registered either as:
 Sole Proprietorship
 Partnership
 Close Corporation
 Private Company
 Co-operatives
Viable/Bankable Business Plan
Securities
 Deed of Grant / PTO / Title Deed
 Investments; Insurance Policy (with surrender value)
 Surety ship
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Requirements (Cont)




Original SA identity document
Proof of marital status
Proof of residence
valuation fee (over R50 000.00)
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Requirements (Cont)








Copy of contract / appointment letter
Business Profile
Financial statements projections
Cash flow projections
Work schedule
Bank statements (Six month period)
Tax clearance certificate
Ck documents or memorandum and articles of
association
 10% own contribution on ordinary business.
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Summary of SMME’s financed over
five year period(2006-2010)
NO
Period
No of SMME’s Finance
Value of amount Financed
1
2005/06
262
R56.6 million
2
2006/07
456
R105.8 million
3
2007/08
432
R61.1 million
4
2008/09
88
R19.1 million
5
2009/10
75
R16.5 million
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RISIMA HOUSING FINANCE
NO
Period
No of Houses
Value of amount Financed
1
2005/06
269
R40.4 million
2
2006/07
420
R68.0 million
3
2007/08
357
4
2008/09
5
2009/10
R32.9 million
204
R56.1 million
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Great North Transport (2006-2010)
NO
Period
No of Passenger transported per
annum
1
2005/06
36.0 million
2
2006/07
36.5 million
3
2007/08
36.0 million
4
2008/09
42.2 million
5
2009/10
36.0 million
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Contact Details
Lebowakgomo:
Ritavi :
Giyani :
Thohoyandou :
Polokwane :
015-633 4700
015-303 1731
015-812 3111
015-962 4900
015-295 5120
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THANK YOU
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