FILE PICTURE: Logo of Sasol at its headquarters in Johannesburg. Picture: AFP
SASOLBURG – Sasol and the Department of Trade and Industry (dti) launched a R54 million business incubator on Monday that seeks to groom South Africa’s black industrialists.
Situated in Sasolburg in the Free State province, the facility comprises five individual buildings, complete with manufacturing equipment and essential business services and infrastructure.
Maurice Radebe, executive vice president of Sasol Energy Business, said the old days, when ‘enterprise development’ referred to cleaning services, catering companies and stationery providers, are gone.
“Now it’s about manufacturers,” he said. The 172-hectare eco-industrial park makes it possible for small businesses to thrive without much need to go beyond the confines of the premises. In addition to gaining access to Sasol’s supply chain, the companies are able to provide services to one another. For example, there is an accounting company, as well as a B-BBEE compliance specialist. Business owners also have access to training, which is provided by one of the on-site ‘incubatees’.
“I’ve been involved in entrepreneurial businesses and there are three major things that make a business succeed,” says Radebe. “One is skills. Number two is funding. Number three is access to market. And this industrial park provides all of them.”
dti deputy minister Mzwandile Masina said he was most encouraged by the exit strategy that is built into the incubation model. Businesses are only given physical support for three to 12 months, after which entrepreneurs can purchase a stand within the industrial park on which to build their own premises, and other entrepreneurs can be given the opportunity. Following this physical support, business owners receive virtual support from a Sasol business incubation specialist for a further 24 months.
“The 172-hectares of land is made available for the building of factories,” said Masina, adding that any qualifying entrepreneurs may build factories at the industrial park, irrespective of whether they have participated in the incubator programme. “Neither Sasol nor the dti are going to build factories for individuals. They can apply for funding, and we’ll sell them a stand. Nobody’s going to get it for free.”
Budding industrialists
In order to qualify for assistance from the incubator, entrepreneurs must already have a product, which they wish to begin producing on a larger scale. Although the programme targets black-owned and black managed companies, it does not do so exclusively.
Among the 16 businesses already operating at the industrial park are Dermaherb Cosmetics, which makes body lotions and petroleum jelly with medicinal properties; and African Thread Tape (ATT), the only manufacturer of plumber’s tape on the continent.
“Our only competition is imports from China, which can produce far more cheaply, but there is still a lot of demand. We are growing very fast” said owner of ATT, Colwyn Savings, who already has plans to build a factory in the industrial park .
Zamuzi Projects is a waste management company that has found a way to recycle miners’ self-rescue breathing devices, which are considered harmful waste and have to be incinerated when they are discarded in order to protect the environment.
KSM Chemical Solutions is another incubatee. The company makes biodiesel and eco-friendly cleaning products, but is still only selling to family and friends at this point.
“One of the challenges we face is that we have to get the products approved by the SABS (South African Bureau of Standards), and that costs about R60 000 for each product. And we have 20 products so it’s expensive,” said KSM MD Kelvin Jacobs.
The industrial park has 151 stands, which are fully serviced and available for sale at competitive prices to qualifying business owners, who will undoubtedly be at the forefront of the movement to create black industrialists locating themselves at Sasol’s eco-industrial park in Sasolburg.
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