ECDC releases solid results
Corporation in its penultimate year of its turnaround strategy
09.29.2009 – More than 800 Small Medium and Micro Enterprises (SMMEs) received
financial support from the Eastern Cape Development Corporation (ECDC) in the
2008/2009 financial year compared to 130 in the previous year due to a successful
Announcing the corporation’s financial results yesterday, ECDC chief executive
officer Mxolisi Matshamba says the corporation disbursed R312 million to business
initiatives last year exceeding its annual target of R147 million. Of this amount, R214
million was collected.
“ECDC launched a set of new financial products last year which ensured that we
improved our developmental impact in the province. The corporation extended its
reach in the Eastern Cape providing loans to 53 locations across the province.
“The corporation’s 630% growth in short-term loans not only ensured the effective
delivery of short-term poverty alleviation projects such as the Department of
Education’s school nutrition scheme and the Department of Health’s food parcel
distribution to poor areas, it also enabled economic growth in line with the Provincial
Growth and Developmental Plan’s (PGDP) objectives to develop the province,” says
ECDC disbursed R203 million in loans to SMMEs who are service providers to the
education department’s school nutrition programme.
Matshamba says these projects resulted in ECDC facilitating the construction of
new roads, the completion of government construction projects and the
development of new businesses. Government’s infrastructure development
programme resulted in the Workflow Construction Contractor’s loan exceeding its
targets by 253%, disbursing R40 million in construction loans ECDC managed to
collect R33 million of this amount.
“The global credit crunch resulted in commercial lenders closing down which
allowed ECDC to play a significant role of supporting businesses that were
vulnerable. Most of