DEDEAT and SEFA sign a R110 000 000 worth Wild Coast Development Fund MoA

EAST LONDON, South Africa - Nov. 28, 2013 - PRLog -- In the Eastern Cape Province of South Africa, the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism (DEDEAT), and  Small Enterprise Finance Agency SOC Limited (SEFA) signed a Memorandum of Agreement (MOA) that will see both parties contributing an amount of R55 000 000 (fifty five million rand) each to establish a R110 000 000 (one hundred and ten million rand) Fund, subject to a due diligence exercise and approval by their respective regulatory and governance structures and National and/or Provincial Treasury.

The MOA, signed by Eastern Cape DEDEAT MEC (DEDEAT), honourable Mcebisi Jonas and SEFA Chairperson Dr S Magwentshu-Rensburg will provide financial and non-financial assistance to SME’s in the Wild Coast Region of the Eastern Cape Province. “The purpose of this MOU is to establish collaboration between Parties and encourage development of SMMEs within the Wild Coast Region of the Eastern Cape Province” said MEC Mcebisi Jonas. “We will establish a joint project steering committee to oversee the establishment of the Fund including the approval of its Business Plan and modus operandi. The purpose of this MOA is to record a mutual relationship between the us and the department and simultaneously record each our undertakings and/ or obligations” added Dr Magwentshu-Rensburg.

The Parties wish to setup a Wild Coast Development Fund which will provide financial and non-financial assistance to SME’s in the Wild Coast Region of the Eastern Cape Province with a view to:

- Facilitating the economic growth of black owned businesses by providing financial and non-financial support to develop them from small businesses to medium and large businesses.

- Facilitating access to business opportunities for SMEs within the Wild Coast Region of the Eastern Cape.

- Providing bridging finance, term loans and non-financial support to enterprises within the Wild Coast Region.

The anticipated the duration of the contract shall be for a period of 5 years (five) years and may be renewed or extended for a period as may be mutually determined by the Parties.

DEDEAT forms part of the provincial government’s intent to spearhead growth and development of provincial economy. Policy priorities are derived from the Provincial Growth and Development Plan (PGDP), Provincial Industrial Development Strategy and other high impact policy and linkages to initiatives such as the Provincial Job Strategy and now the National Development Plan (NDP).

SEFA, which is the result of a merger between South African Finance Apex Fund, Khula Enterprise Ltd and Small Business activities of IDC. Its `mandate is to foster the establishment, survival and growth of SMMEs and contribute towards poverty alleviation and job creation.

This agreement was signed during the Eastern Cape Integrated Wild Coast Development Programme (IWCDP) Summit held in OR Tambo Region on 14 November 2013. The summit took place at the back of a string of extensive and incisive stakeholder consultations within the affected regions.