Grow: The fund provides support to purchase trading stock, equipment and working capital to grow the businesses

By Isaac Moledi

Township-based businesses around the Gauteng province can now apply for loan funding in a multi-million rand funding initiative set to uplift and revitalise the provincial township enterprises operating in the fast-moving consumer goods (FMCG) sector.

The R100 million loan funding, dubbed the Kasi Mnotho Fund, which came into effect from  Wednesday this week, has been described as a transformative initiative crafted by Family Tree Holdings in partnership with the Gauteng Provincial Government (GPG), Gauteng Enterprise Propeller (GEP), Absa Group Limited and the Industrial Development Corporation (IDC).  Family Tree Holdings is a multi-disciplinary support and capacity development company focusing on the township and rural economic development.

Rooted in the Township Economy Development Act, organizers say this programme will fortify and enhance township economies through strategic skills development, infrastructural support and empowering business associations.

This R100 million loan funding is made up of contributions from the Township Economy Partnership Fund (TEPF) and the Absa Bank. Both Absa and TEPF will each contribute R50 million to the fund. The fund provides financial assistance in the form of loans to eligible township businesses in Gauteng province. This support can be used to purchase trading stock, equipment, machinery and working capital, helping businesses grow and expand their operations. Apart from financial aid, the fund offers pre-investment skills training to entrepreneurs. This training equips them with essential business skills, knowledge and strategies to run their enterprises successfully.

For businesses that do not initially qualify for funding, the fund offers a dedicated rehabilitation programme. This programme aims to refine and enhance business operations, guiding entrepreneurs toward compliance and sustainability. Expert guidance and support are provided to nurture these businesses, ensuring their long-term success.

The Gauteng’s township-based enterprises in the FMCG value chain include manufacturers, retailers and distributors.

To be eligible for a Kasi Mnotho Fund loan, applicants must meet the following criteria:

• Be a South African citizen, 18 years of age or older,
  
  
• Reside and have his business operate within Gauteng for at least six months,
  
  
• The business must be located in a township as defined in the Gauteng Township Economy Development Act (TEDA),
  
  
• The business must be registered and incorporated in South Africa;
  
  
• Limited to business with a turnover below R50m and
  
  
• Be willing to be enrolled in the Kasi Mnotho

Enterprise Development Programme.

The move is likely to encourage the Gauteng townships business owners to reclaim the township businesses – the terrain that has resulted in ongoing turf wars between local township entrepreneurs and foreign nationals who are said to have taken most sectors of the multi-billion rands township economy that includes spaza shops, saloons and bakeries under their control.

Although the government has been condemned for dragging its feet to resolving this thorny issue of foreign nationals taking over township businesses, the police have however responded by confirming that they were on top of the situation.

A police officer was quoted as saying they were investigating various cases including murder, food poisoning and product tempering by cdrtain foreign spaza owners after cheap cigarettes were suspected to have been laced with drugs and slow poison. As a result of this, many locals especially children, have died in the process.

South Africa’s immigration laws do not allow any foreign national to operate any business without a valid business visa and an investment comprising  at least R5 million. Informal trading businesses such as saloons, spaza shops, selling vegetable etc. are sectors reserved only for locals (Immigration Act 13 of 2002, 15 (1). In the event that foreigners can prove their compliance to all requirements, they are compelled to employ 60%

South Africans in their businesses operations.

The selling of fake products to South Africans and the killing of children as a result of them eating expired food products has infuriated scores of township business owners with one Township Economic Commission SA (TECSA) saying they are, together with other township stakeholders, planning to host the township fake product summit  scheduled from 4 to 10 December “as part of our interventions strategy to resolve this brewing pandemic in the townships,” says TECSA founder and president Bheki Ma-Events Twala.

The GPG believes that the Kasi Mnotho Fund is an important element in the government’s broader vision of transforming township economies and fostering inclusive growth. Empowering local businesses can create a ripple effect of positive change across the length and breadth of the province, the provincial government says. “We invite all township-based FMCG enterprises to join us in this transformative journey. The Kasi Mnotho Fund is not just about financial support : it is about realising dreams, expanding horizons and securing a prosperous future for township economies.”

Application forms are available from any of the province’s walk-in centres or can be downloaded from the GPG website www.familytreeholdings.co.za. Applications can also be requested via email at apps.kasimnotho@familytreeholdings.co.za.

CHECK OUT THE DEVIL IN THE CONTRACT’S DETAIL

Promote: Athletes must demand what they are worth and agents must promote their interests

By Isaac Moledi

Do you take charge of your contractual obligations in sports and become the boss of your own game or do you shiver at the sight of those complex documents ?

Are you equipped, as an athlete, with the knowledge and tools necessary to confidently navigate and scrutinize contractual agreements in this highly competitive world of sports?

At the recent Momentum’s inaugural Women Who Make Moves in Sports Summit – an exclusive event attended by top female athletes from across the country – women were empowered with vital skills and tools that can support them in leveraging their sporting talents to better position themselves for sponsorship opportunities.

Lawyer and sports agent, Karabo Tshabuse, one of the speakers at the summit, explained the importance of knowing how to negotiate better contracts  and get what you are worth. “As Africa’s first female FIFA – accredited Players’ Agent, I wanted to share my advice on reading and negotiating sporting contracts, from signing with an agent to becoming a brand ambassador. After all, you are the boss – and the higher you go, the more you have to take yourself seriously.”

According to her, the player-agent relationship is a very personal one based on trust. “You are telling a story with your career – and the agent’s job is to promote it. Even if you are desperate to sign a contract, remember that you will have to honour what you sign, so make sure you are comfortable with the terms.”

What should an athlete look out for when approached by an agent? Here are some of Tshabuse’s guidelines:

• If an agent approaches you, that means they want to sign you – you are sought-after and, as the client, you will be the agent’s boss. Know your worth and tailor-make your provisions. Agents must work in your best interests, so do not be afraid to ask for what you want.
  
  
• Beware of exclusivity. A lot of agents want exclusive rights to represent an athlete but that can bring challenges. You want to keep your options open to work with different experts. For instance, a booking agent or a sponsorship agent. Different people specialise in different fields and non-exclusivity means you can negotiate for the best deals from everyone.
  
  
• Negotiate the agent remuneration – it Does not have to be an automatic 10%. You can negotiate and structure your terms. Ffor instance, if they find you a deal or if you find a deal yourself, the remuneration structures should be different. Also make sure you put strict payment terms in place for payments due to you, for instance, will you be paid before or after appearances, in lump sums or monthly payments? Put all the details on paper so there is always clarity around your finances.
  
  
• Be clear about your agent’s mandate. Remember, an agent can enter into legal and binding agreements in your name if you authorise them to, so make sure the negotiations always have your final and literal sign-off. That way you stay in control and the agent does not have carte blanche to do whatever they want on your behalf.
  
  
• Negotiate the terms of termination. You should be able to terminate your agent’s contract for a breach or for non-performance and not just for death or injury, which are the typical agent contracts.

In South Africa, the terms “endorsement” and “sponsorship” are mostly used interchangeably, but Tshabuse believes there are subtle legal differences. An endorsement is when a brand is so closely associated with an athlete that they are almost synonymous. For instance,  She however believes that true endorsements are rare and unique.

Sponsorship, on the other hand, is when a corporate funds a team or a player in return for brand advocacy. As your star rises, you will have more bargaining power – so what should you be aware of when you are approached by a brand?

Tshabuse advises the following:

• Make sure you are aligned with the sponsor’s entitlement and the fee you will get : what do they want and what do you get? You should be clear about all the entitlements and exclusions involved, for instance, could you start your brand? Who do they see as competitors, even if you don’t? What happens if your friend in the photo with you is wearing a competitor brand? Insist on a schedule page to the sponsorship contract that lists the details of what is allowed and expected.
  
  
• Be clear about the fee structure. How and when will you be paid? In a lump sum or per performance? Before or after?
  
  
• Look out for conflicts. Pulling out of a contract or competing with your sponsor will harm your reputation, so be open from the start about your goals.
  
  
• Include details on what will happen if you suddenly cannot perform. Be clear about modifications and amendments to your deal if you cannot meet your sponsor’s expectations, for instance if you are called up for the national team and cannot appear at a sponsor’s event. Be precise about cancellation terms and fees.

A personal service contract could be an employment contract with a club or a contract with the government when you get a national call-up.

To negotiate the best deal for yourself, you need to understand your goals and what you would like to achieve.

Know the power of collaboration – working with your team will give you all more opportunities for leverage and to create a win-win situation for everyone. Also remember to negotiate the use of your personal image.

“With all contracts, you need to get the basics right. Know what you want and build a competent team around you. Always seek advice before signing anything.’’