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Presentation Outline
Purpose of presentationBackgroundVisionMissionProducts & Services Targeted SectorsPricing andRequirements.
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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)EncouragePlan FinanceCoordinatePromote 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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MissionTO Establish and advance a sustainable SMME
sector through the facilitation and provision of business and investment opportunities
Main activitiesSMME funding and contribution to economic
developmentProviding guarantees and sureties. (subject to
Minister’s approval)
Mission of LimDev
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PRODUCTS & SERVICES
SMME Development FinanceProject Development and
Property ManagementMining Development Housing Development finance Passenger Transport.
Project Development and Property Management Division
LimDev partners with SMME’s on property development.
andIt 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
AndIt 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.
AndIt 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.
andIt contribute to SMME development
through procurement services.
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SMME Development Finance
LimDev provide developmental finance to SMMe’s,
andProviding guarantees and sureties.
(subject to Minister’s approval)
SMME Development Finance is the core
business of LimDev
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Targeted Sectors PrioritizedManufacturingMiningTourismAgriculture ( agro-processing )ConstructionRetailingSpecialized Business ServicesPersonal ServicesTransport.
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Types of Financial Products
The following are types of financial products available for the SMMEs in the Limpopo:Working Capital FinanceCapital Expenditure FinanceStart up Capital FinanceEquity Capital FinanceBridging 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
TermMax. of 36-84 months
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Equity Capital Finance (BEE financing)
Purpose
Finance purchase of equity/stake in existing businesses
TermBuild-in exit strategy from beginning. Max. period :
36-84 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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RequirementsThe business must be registered either as:
Sole ProprietorshipPartnershipClose CorporationPrivate CompanyCo-operatives
Viable/Bankable Business PlanSecurities
Deed of Grant / PTO / Title DeedInvestments; 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 ProfileFinancial statements projectionsCash flow projectionsWork scheduleBank statements (Six month period)Tax clearance certificateCk documents or memorandum and articles of
association 10% own contribution on ordinary business.
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 R32.9 million
5 2009/10 204 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: 015-633 4700Ritavi : 015-303 1731Giyani : 015-812 3111Thohoyandou : 015-962 4900Polokwane : 015-295 5120