Funding gives her business a leg-up

WITH the R539 473 start-up loan she received from the De Beers Zimele Venetia Business Hub, Mukondi Mafune launched her business as an independent distribution contractor for Sasco in the Musina area.

The contract with Sasco, paired with the low interest loan from Zimele allowed Mukondi to set-up her own self-directed depot and distribute bread to national retailers, community tuck shops and farm stalls.

As a qualified accountant, Mukondi recognised the cost-saving implications of a specialised delivery vehicle and used the funding from Zimele to purchase a truck which can carry up to 2 000 loaves of bread in a single load. In addition, the loan facilitated the appointment of eight permanent employees consisting of a director, three drivers, three assistants and an administration officer.

A year later, Mukondi has expanded Sasco’s distribution route and distributes more than 70 000 loaves of bread each month.

Johan Fourie, Sasco sales representative for the Limpopo region describes Mukondi as one of his top performers and lists her great bookkeeping and her strong administration as some of the strengths that set her aside from the rest.

Mukondi attributes her natural business wisdom to her parents, who encouraged an entrepreneurial spirit and allowed her to sell fruit at the market from an early age.

Another driver of success was Mukondi’s association with the De Beers Zimele Business Hub. “Through Zimele, my business has become more sustainable and cost effective. What makes the loan from the De Beers Zimele Business Hub different is that it is about more than merely financial assistance,” said Mukondi.

According to Mukondi, through the hub, she has received guidance and financial expertise related to business and market analysis, as well as risk management. Furthermore, the low interest rate and easy payment terms complement her cash flow in situations where the business is experiencing late payments from the supplier. This in turn decreases her financial risk and allows her to flourish where many small businesses fail.

Mukondi recognises that many entrepreneurs miss the mark due to enticing potential for personal gain once the business becomes profitable. She is therefore determined to use revenues to expand her business and resists the urge to indulge on a luxury car.

Her vision for Renuna Trading is to develop her depot so that it distributes eggs supplied by her own laying hens to national retailers in and around Musina.

She further added that De Beers Zimele Business Hub has made her realise how much De Beers and Venetia Mine care for the community.