XPRESSECDC INTERNAL NEWSLETTER

Inspired to change the Eastern CapeISSUE 8 | MAY/JUN 2011

IN THIS ISSUE

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CEO NOTICES

SUN CITY HOLIDAYWINNER

WATCH THIS SPACE: CEO VISIT TO REGIONS FOR

NEW LOAN PROCESS

EXTENDING A HELPING HAND TO THE CHILDREN

OF BUFFALO CITY

ROUNDUP OF EVENTS

FAREWELL TO RETIRING STAFF

ZODWA TO JUDGE AT COVETED EXPORTERS

AWARDS

LATEST APPOINTMENTS

ECDC WELCOMES THE NEW BUNDLES OF JOY

WINNER! CONGRATULATIONS!

NEW COMPETITION

These developments are some of the many firsts for the organisation since CEO Sitembele Mase was appointed on 01 July.

“These”, he says, “are necessary to rally the people of ECDC towards the single vision of the corporation as a development finance institution (DFI).

“Change is inevitable,” he says.

He explains that during the past three consultative sessions with staff, they were overwhelmingly in favour of a single entry point for servicing customers.

“This call informed the development of a new operating business model and the redesign of the structure which will result in four key customer-centric changes:

• Devolvingsomepowers to the regions; • Creatingconsulting rooms for all ECDC offices to curb walk-in clients in all areas;• Improvingsecurityatall offices by limiting access of clients to certain areas of ECDC offices; and• Separatingheadoffice from the East London regional office.

He explains that the reconfiguration will also result in some people being

deployed to other areas within the corporation where there is a better fit for their skills.

“Embrace these changes and be vigilant on the course ahead,” he says.

He explains the five-year plan for the corporation is like a bus driver and passengers. “If I was the driver of a bus and ECDC staff were the passengers, I would want the passengers to be alert as we set out on our future. Even if I (as the driver) were to take a wrong turn, the passengers would boldly shout that the turn would not take us to the desired destination.”

“Alert, engaging and disciplined passengers who also have foresight is what I need on this journey.”

“Mentoring and training, and creating an environment that is conducive to performance become critical. Aligning individual performance that has direct effects on unit goals and annual performance targets is another necessary process we are currently undertaking.

“That is why we have prioritised performance management training to help staff understand how their performance will be measured against the financial and non-financial goals of the corporation. Our management, including our regional heads, has undergone media training. How we manage our interactions with media, to varying degrees, has implications on how we are perceived as a corporation.”

“We have also made headway in terms of our risk tolerance policy which has been approved by the board. This largely identifies the tolerance levels for the financial and non-financial risks in our corporate strategy. The management of these risks, by having clear acceptable tolerance levels, will be synthesised into individual performance evaluations.” “The only guarantee for ECDC’s future is a disciplined, high-performing workforce and satisfied customers,” he ends.

after 10 months in office

CEO STIll UpbEaT

Changing the ECDC structure and transferring certain levels of authority to the regions are some of the significant changes which will be implemented in the coming months.

SITEMBELE MASE - CEO

We’re already half-way through the year and there’s so much activity in our calendar.

We’ve covered a lot of ground on Project Kwakhanya and now looking forward to the implementation of our plans. Our enterprise development services team has started rolling out SMME seminars, the investment promotion team has begun with its foreign missions (page 5), and development projects is hard at work to establish the province as a hub for natural fibres (page 4).

Good luck to all of you that will be representing ECDC on initiatives that grow business and stimulate the economy of the Eastern Cape.

Thank you to staff that contributed to this edition of Xpress. Remember that the publication is one way we share news about the things you do outside the office. Take for instance Arnold and Mandy (page 3) who are doing commendable work at the Child Welfare South Africa in East London. Zodwa, on the other hand, will be flying the ECDC banner at this year’s Exporters Awards (page 7).

We would like to feature more positive stories, especially from the regional offices, so send us pictures and info to xpress@ecdc.co.za.

Congratulations once more to our competition winners Nomkitha (page 2) and Phumla (page 8). You may be on a lucky streak so don’t miss out the great competition on page 8.

Best wishes!!

Ikhona

Execution of the corporate strategy

Staff from all the regions will be convened to engage on the new structure. Regions will be the operating arms of the corporate strategy.

Regional visits

Together with the head of development investments, Buhle Dlulane, I will visit each regional office to introduce the new loan granting process as a means of decentralising the approval of loans.

See more details on page 3.

Revamp and refurbishment of Queenstown and Butterworth offices

Although this is progressing very slowly, improvement to these offices is underway.

In the 11 years Nomkitha Nquma has been at ECDC, she has never experienced a reward as big as the seven-day getaway to Sun City. The all expenses paid trip she enjoyed with her husband was a result of entering a staff competition, for which Nomkitha was announced as the winner at the staff end-of-year function last year.

“Having a lucky streak is something that forms part of me,” she chuckles as she shares past winning incidents which include winning a handsome amount of money at the Fish River Casino in Port Alfred.

“The Sun City experience was a greater reward, more than anything I have ever won.

“We, as black Africans, often deprive ourselves of the opportunity to explore interesting places and venture into the big outdoors. This trip was an eye opener which showed me that it is possible to enjoy getaways to resorts like Sun City, as long as one saves in due time,”she says.

“For me, the prize is a signal of something new at ECDC. Under the leadership of Mr Mase, we are already seeing things that never happened in the past. The Sun City experience is one of these new things,” she says.

Nomkitha is optimistic that with Mr Mase at the helm of the corporation, many more exciting opportunities will be made available to staff.

a rewarding experience Sun City getaway,

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ceo NOTICES

Launch of the Eastern Cape Investment Provincial Fund

The incorporation and institutionalisation of the fund as a subsidiary of ECDC is underway. The fund is designed around high impact projects where R2 billion of secured foreign investment is targeted by the end of the 2011/12 financial year.

Project development in the natural fibre cluster

ECDC, a key member of the cluster, is developing opportunities in the province’s seven fibre streams - cashmere, hemp and flax, agave Americana, pineapple, wool and mohair.

See Round Up on events on page 4 for more information.

Agro-processing cluster to be formed

Led by the Department of Economic Development and Environmental Affairs, the formation of the cluster is underway and includes ECDC, AsgiSA Eastern Cape, Eastern Cape Socio-Economic Consultative Council and East London Industrial Development Zone.

NOMKITHA NQUMA

Improving the loan granting process is key to positioning ECDC as a fully-fledged development finance institution (DFI). The CEO visit to the regions is therefore aimed at paving the way for equipping regions with practical tools they need to assess applications and administer loans in future.

Since the regions are the face of the corporation to businesses that need funding, it has become critical to decentralise certain aspects of the loan granting process. This will apply to finance applications that do not exceed R250,000.

Changing the current process -which is time consuming, costly and heavily reliant on head office- will mean sharpening the ECDC system in terms of client advisory services, account management, after care and loan monitoring, debt collection and related legal processes.

The CEO will come to each region to introduce the new loan granting system that will be linked to performance management and reporting protocols, and also synchronised between head office and other regional offices.

Apart from decentralising certain thresholds of the loan granting process, there are other related processes such as financial service provider protocols, credit risk policies, procurement and support finance policies that will also be communicated to regions.

EASTERN CAPE DEVELOPMENT CORPORATION | ISSUE 8 | MAY/JUN 11 XPRESS | PAGE 03

WaTCH THIS SPACE CEO vISIt tO rEgIOnS FOr nEw lOan prOCESS

CENtRAL (hEAd oFFICE) •Allpolicy

•Approvalofloans>R250,000

•Creditriskandanalysis

•Implementation(bothlegalandfinancial)

•Oversight

•Riskmanagement

REgIoNAL•Approvalofloans<R250,000

•Customercare

•Recordkeeping

•Responsibilitytofollowuponcentralisedfunctions

•Loanservicing(aftercare,collectionsandnon-financial

services)

•Reportingtoheadoffice

•Fraudprevention

thE wAY FoRwARd: CENtRAL vs REgIoNAL

a HElpINg HaNd TO THE CHILDREN OF BUFFALO CITY

ExTENdINg

Two head office staff members, Mandy Tyikwe and Arnold Meiring, have joined the fight against child abuse and neglect after being appointed as voluntary workers for Child Welfare South Africa (CWSA) in East London.

CWSA is a national Non-Governmental Organisation (NGO) focused on ensuring the well-being of abused and neglected children in South Africa. It is represented in each of the nine provinces in South Africa. In the Eastern Cape, it has presence in Nelson Mandela Bay and six districts.

Arnold, appointed as the chairperson of the board in East London, explains that his team serves 27 communities in Buffalo City and surrounding areas. This team is comprised of 27 qualified social workers and admin staff which offer a

range of services such as immediate assistance to abused children, facilitating temporary and permanent foster care, adoptions, running Sunshine Place, which is a children’s home, as well as organising and distributing food parcels and baby supplies.

“We are working tirelessly with the management board to implement proper admin, financial and other systems required to deal with the dramatic increase in reported cases of child abandonment and abuse in the area,” says Arnold.

During the past six months, a staggering 102 new cases of severe child abandonment and abuse were reported to the organisation. “This we believe is a result of the deteriorating economic situation together with the very high rate of

unemployment during this period,” says Arnold.

Appointed in September 2009, the two say the petition to parliament for the finalisation of the Prevention and Combating of Trafficking in Persons Bill has been the biggest national interceding initiative they have been involved in. Human or child trafficking has been identified as the world’s third largest and fastest growing organised crime.

“Making a difference to the lives of vulnerable children has been a worthwhile use of my time outside the office. We do this work with gladness, knowing that the efforts made by us and the rest of the CWSA team in East London has a positive impact on the lives and dreams of children that benefit from our help,” says Mandy.

Children helped by CWSA in East London at a social function on Valentine’s Day

to find out how you can make a difference in the life of an abused child, contact CwSa in East london on 043 722 1258/9 or e-mail: mw-elcw@mweb.co.za. Alternatively, you can visit the CwSa website, www.childwelfaresa.org.za, or pop in to the East London office located at 50 Belgravia Crescent in Southernwood.

This included talks on opportunities for small business, successes and challenges facing youth and women entrepreneurs. Alongside the Summit was the Business Unlimited Expo which showcased products by some craft enterprises supported by ECDC.

Mpumi Fundam, head of ECDC’s enterprise development services (EDS) says: “Amongst the highlights of the event was awarding ten bright business minds for their submissions in the Eastern Cape SMME Business Plan Launchpad competition, which ECDC ran in partnership with Enablis. We plan to solely run the competition (as ECDC) this year, and hope for a better and more impactful Summit in 2011.”

SMME SUMMIT AND BUSINESS UNLIMITED EXPO

ROUNdUpOF EVENTS

More than 250 SMMEs attended the two-day event which featured presentations, panel discussions and SMME testimonies on topical issues.

SMME wOrkShOpS

UNlEaSHINgentrepreneurialpOTENTIal

The EDS team held four workshops for SMMEs in Mthatha,Cradock, Ugie and Alfred Nzo. Held between October 2010 and March 2011, the workshops focused on issues such as the role of procurement in SMME development and the ingredients of a successful business.

Queenstown based business advisor Wendy Hempe says,

“For the first time we held a workshop in Cradock. It was clear from the participants that ECDC was not visible in the area. There was a call for more information seminars and workshops on ECDC services. We also exceed the targeted number of SMMEs, a success made possible by the support of Inxuba Yethemba Local Municipaity which helped us to organise the seminar.”

“Our commemoration of World Aids Day, linked to our HIV/Aids policy, helps us embrace the global campaign by building further awareness in order to tackle HIV prejudice and fight the spread of HIV,” says ECDC’s human resources manager Linda Filtane.

WORLD HIV aIdS DAY

EASTERN CAPE DEVELOPMENT CORPORATION | ISSUE 8 | MAY/JUN 11EXPRESS | PAGE 04

NaTURal FIbRE CLUSTER MEDIA bRIEFINg

The Eastern Cape natural fibre cluster is likely to lead the country’s initiatives in natural fibre processing, said Sitembele Mase in a media briefing held in East London on the 14 April. ECDC, together with the provincial Department of Economic Development and Environmental Affairs, the Council for Scientific and Industrial Research and Cacadu District Municipality, are part of the team leading fibre development initiatives in the province.

“Already R21 million has been invested in research and product development of these fibres. Two hundred and six jobs have been created, 33 jobs in a hemp commercial pilot project and 173 jobs in the cashmere sector,” says Sitembele.

The team aims to map out the value chain for products in the five fibre streams - cashmere, hemp and flax, agave Americana, pineapple, wool and mohair.

ECDC participated for the third time in the annual Hannover Messe in Germany from 04 to 08 April. The trade fair, themed smart efficiency, showcased over 5,000 innovations from exhibitors from 65 countries from all over the world.

Port Elizabeth-based trade promotion coordinator, Chumile Ntuthu, who formed part of the Eastern Cape delegation at the fair, said: “Representing the province was Nelson Mandela Bay and Buffalo City municipalities, East London IDZ and ECDC. We received promising leads and several business partnership opportunities to follow up on. The Eastern Cape team certainly made inroads in strengthening the relationship with the German government and businesses in Europe.”

EASTERN CAPE DEVELOPMENT CORPORATION | ISSUE 2 | MAY/JUN 11EXPRESS | PAGE 05

2010 STaFF ENd-yR function The black and white masked-ball on 26 November was a different way of wrapping up the day’s proceedings. The day saw staff engaging in the corporate strategy, unit heads presenting on new business plans and the CEO providing feedback on the regional road shows which took place between September and October.

pROVINCE FlIES Flag HIgH IN GERMANY

EASTERN CAPE DEVELOPMENT CORPORATION | ISSUE 8 | MAY/JUN 11XPRESS | PAGE 06

Q. How long have you been with the ECDC?a. I joined the corporation in 1983 when it was still Transkei Development Corporation (TDC). I left in 1988 to go to Windhoek, but couldn’t stay away and rejoined the corporation in 1991.

Q. What major changes have you seen during your period at ECDC?a. A big challenge was developing IT support after the amalgamation of the four institutions that formed the current ECDC - ECDA which already incorporated Transkei Development Corporation, Transido, Ciskei People’s Development Bank, and the Centre for Investment and Marketing in the Eastern Cape. It was however a worthwhile experience as our IT department now runs all system in all our regional offices.

Q. What will you miss the most when you leave?a. The people I helped daily. The dear friends that I have made over the years.

Q. What will you miss the least?a. The bureaucracy.

Q. Any memorable moments?a. There have been many with a lot of my colleagues. I’d say though as far as the corporation is concerned, the amalgamation in 1996 was quite a thing.

Q. If you had an option to retire earlier, would you have already?a. No way.

Q. What do you plan to do with your time?a. I haven’t really thought about it yet, but maybe I’ll take three months off to rest then see what ideas I come up with.

Q. How does your family feel about you being home full time now?a. Like I’ll be a permanent fixture on the couch (hehehe), but they need not worry. I’ll now have more time to do a lot of church work that I’ve had little or no energy to do in the past. I’m hoping my wife and I can once again run the Alpha course for our church which is a basic course on the Christian faith.

Q. Any last words to your colleagues?a. I’d like to thank the staff for their trust in me and my abilities, the joyful and the tearful moments we shared together. The people here at head office and at the regional offices are special to me.

Derek retires on 31 July.

dEREk ROUQUETTE RETIRES AFTER 25 YEARS WITH CORPORATION

One of the highlights of my career was when ECDC operated as the Eastern Cape Development Agency (ECDA) from the East London office on St Luke Street. I single handedly installed a wide area network for all our regions and district office. This also involved integrating Ciskei People’s Development Bank, Transido and Ciskei Small Development Corporation into our current IT system, Promun. This was quite a milestone for me.

blyTH lUNgakazI SIgCaU joined the ECDC family in 1982, under the employment of the transkei Development Corporation.

Her journey with us started as assistant credit controller for three years, then seven years in the development investments unit as a member of the debt collection team and then trainee business advisor. This was followed by a two-year stint as a development coordinator in the spatial programmes unit (which now forms part of development projects) and the last seven years as a project coordinator.

Sis’Blyth is a true lady, with a beautiful smile. She prides herself on professionalism and is always considered a pleasure to work with.

From all of us at ECDC, we wish you well in your retirement.

We hope this next stage in your life is filled with love, laughter, relaxation and many blessings! Blyth retires on 31 May.

29YEARS

25YEARS

FaREWEllTO RETIRINg STaFF

EASTERN CAPE DEVELOPMENT CORPORATION | ISSUE 8 | MAY/JUN 11 EXPRESS | PAGE 07

Sis’Mandi will be greatly missed.

zOdWa TO JUdgEaT COVETEd ExpORTERS aWaRdS

Helping local entrepreneurs to access export markets is how Zodwa spends her days at ECDC. This role, which she has played for over ten years, has landed her a judge’s seat for the 2011 Exporter of the Year Awards.

The awards, an annual initiative of the Eastern Cape chapter of the Exporters Club, are in recognition ofexport innovation and accomplishments of local business in terms of foreign trade.

“Being given the opportunity to form part of the judging panel of this stature is certainly a pat on the back. This shows that my efforts, on behalf of ECDC, are being recognised by the industry,” says Zodwa.

ECDC, a member and a key sponsor of the Exporters Club (EC), will be sponsoring the 2011 awards ceremony to take place on 26 August. “The long-standing partnership

between ECDC and the Exporters Club has been helpful to achieving some of ECDC’s trade promotion goals which include facilitating participation of local business in national and foreign trade fairs, and linking local products to overseas agents, distributors, and joint venture partner buyers,” she explains.

Zodwa will be judging alongside Eastern Cape chairman of the Exporters Club Quintin Levey, Annemarie van Jaarsveld (Nelson Mandela Bay Municipality councillor), Piet Naude (Nelson Mandela Metropolitan University’s Business School), Neil Mattheus (ABSA), Sam Venter (Nelson Mandela Bay Business Chamber) and a representative from the Department of Trade and Industry.

The 2011 awards will be made up of five categories: Exporter of the Year (entity that achieved the most success); Best Exporter-Corporate (export turnover

From left: CEO Sitembele Mase, Zodwa Kepeyi, Chumile Ntuthu, and Soli Magagula from the Department of Trade and Industry at the

2010 Exporter of the Year Awards

greater than R100 million); Best Exporter-Medium Enterprise (export turnover between R25 million and R100 million); Best Exporter-Small Business (export turnover of up to R25 million); and Best Provider of Services to Exporters (such as forwarding and clearing agents, shipping lines and agents, forms of transport and financial services providers).

20YEARS

20 yEaRSof harD WorK anD DeDicationan achievement duly noted.

Mandisa Joyce Nxele has played many a role in the finance department over the last 20 years. Always dedicated and hard working, Sis’Mandi took any challenge in her stride. She was the type of person to take great pride in her work.

Mandisa retired on 28 February.

ECdC congratulates Ncediwe and vera for their bundles of joy.

vera sefali, services assistant in Port Elizabeth, gave birth to a bouncing baby boy on 16 October 2010.

Ncediwe gxabashe, head office receptionist, gave birth to a baby boy on 03 February 2011.

EASTERN CAPE DEVELOPMENT CORPORATION | ISSUE 8 | MAY/JUN 11XPRESS | PAGE 08

WIN

Competition!

Buhle dlulane joined ECDC on 01 February as the executive manager for the Development Investments Unit.

Nopasika Mxunyelwa joined ECDC on 07 February as the senior manager for Communication, Marketing and Stakeholder Relations.

Ntsundukazi hokwana is the new receptionist at the King William’s Town office since 01 February.

Lulama Moses has been appointed Queenstown regional manager after serving as its acting micro-finance manager for nearly six years.

thabo shenxane has been appointed as the manager for the Imvaba Co-operatives Fund since 01 March.

ECdC WElCOMES some neW facesAT HEAD OFFICE AND THE REGIONAL OFFICES

BUHLE DLULANE NOPASIKA MXUNYELWA NTSUNDUKAZI HOKWANA LULAMA MOSES

Appointments

THABO SHENXANE

oH BABY!

ECdC welcomes

the new little

bundles

of joy

win a hamper filled with ECDC branded goodies by answering this simple question:

Name the staff who are marked with yellow stars on pages 4 and 5 - 2010 staff End-Yr Function.

Send your response to xpress@ecdc.co.za by Friday, 03 June. A lucky draw for the correct responses will take place on 10 June 2011.

WINNER!Congratulations!

Phumla Madliwa from the development investment unit at head office is our winner of the competition in the last issue of Xpress! phumla walked away with an ECDC branded hamper with a leather wallet, diary, business card holder, notebook and key holder.

Vera’s baby

Ncediwe’s baby