Durban — Ithala Development Finance Corporation (IDFC) has embarked on a strategic partnership initiative with the private and public sectors to drive economic participation of emerging black entrepreneurs operating in all sectors of the economy, particularly those in rural and township areas.
A recent beneficiary of this initiative was youth-owned company Mandeni Waste Recyclers Co-Operative which received a boost from the bank and Sappi as part of an enterprise and supplier development partnership signed in 2022.
The company was awarded a 5-year contract by Sappi to manage a landfill site in Mandeni. Ithala provided R11 million loan finance to the Co-Operative to acquire a bulldozer, TLB, front-end loader, small assets and working capital to fulfil the contract with Sappi.
University of KwaZulu-Natal graduate and co-founder Nqobile Mkhize said the contract they got from Sappi meant a lot as it would allow the company to demonstrate its skills, and gain more experience in the field.
“In addition to the growth of the company, the funding from Ithala will allow us to meaningfully contribute towards socio-economic empowerment through the provision of jobs that improve the well-being of our employees and their families,” said the graduate in BSc Biological Sciences.
She said the co-operative consisted of five members, two men and three women, including herself.
Mkhize said the reason for starting the company was pure passion for the environment, and identifying a gap in the market, especially in Mandeni, where there were no local SMMEs focusing on waste management.
“The reality is that companies specialising in waste management are needed not only at a global level but even at local levels. The vision of this company is to provide ‘Solutions to Pollution’ through recycling, waste management, and sustaining an environment that will also be beneficial to the coming generation,” said Mkhize.
The bank’s reputation manager, Sitandiwe Dimba, said Sappi and Ithala would provide ongoing support to the co-operative to ensure their success.
“To support emerging black businesses in rural KwaZulu-Natal who have been struggling due to a lack of financial and non-financial support, IDFC signed an MOU with Sappi on June 23 last year. Through this MOU, IDFC and Sappi are working together to support Sappi contracted SMMEs and co-operatives with access to finance, access to markets and preand-post investment support.
“The result of this partnership is the successful funding of five businesses to the value of R34m with an estimated 129 jobs created,” she said.
Mandeni Waste Recyclers Co-Operative specialises in collecting and supplying K3/K4 cardboard, waste logistics, electronic waste, waste recycling and cleaning services.
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