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Bay businesses secure over R8m in funding

Home Business Management Finance & Investment Bay businesses secure over R8m in funding

FOUR manufacturing businesses have secured over R8 million in funding from the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism.

MEC for the Economic Development, Environmental Affairs and Tourism Mlungisi Mvoko recently visited Gqeberha to confirm that the funds are being used for the intended purposes, verify the employment impact, and officially present the grants to recipients.

The grants were made possible by the Local and Regional Economic (LRED) Fund that the Department manages.

Before the official presentation, Mvoko visited Hloza Engineering, a 100% black-owned manufacturing business in the Bay area that received a R2-million LRED grant.

The business, which manufactures steel products, used its funding to acquire machinery and vehicles.

“Hloza Engineering, as is the case with all the businesses which we funded throughout the province, are part of the government-community compact to create employment, retain existing jobs and ensure business sustainability as we work hand-in-hand to develop the economy,” Mvoko said.

“Our people should expect to witness our own making a difference in other people’s lives.”

Other businesses to receive grant funding during the MEC’s visit were plastic injection moulders, New Breed (R1,9m); manufacturers of paints and rubber proofing, Numo Paints (R1.7m); and waste recyclers and plastic manufacturer, Rhino (R2.7m).

The department said 85 jobs were created or saved in the Metro through this funding window.

The Gqeberha presentation brings to 17 the number of recipients who have received well over R33m in funding from LRED, Imvaba Cooperative Fund and the Provincial Economic Stimulus Fund.

Presentations to companies in the OR Tambo, Joe Gqabi and Chris Hani Districts took place in April 2021 (OR Tambo) and the rest earlier June. The Amathole and Alfred Nzo District events are scheduled for late in June.

Currently, the application window for the LRED fund is closed. However, a new window for applications is planned. The department will publish these details once they have been finalised.


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