ECDC loan turns around the fortunes of a local business. An R800 000 Eastern Cape Development Corporation (ECDC) loan has helped to turn around the fortunes of a local filling station.
The Mtembu family’s Caltex filing station in Ulundi has in less than two years become an award winning business that has seen a 20% growth in revenues with the help of the ECDC loan.
The ECDC is an investment, trade and promotion agency of the Eastern Cape province.
Following several failed attempts, owner Nomthandazo Mtembu and her two sons Tukela and Basanda applied for finance from the ECDC and the family was finally able to open operations in February 2012 after obtaining an R800 000 loan.
The money was used to renovate the existing building, install a security system and to fill tanks, among others.
“With revenue growth of 20% since inception, the petrol station became the overall Eastern Cape winner of the Caltex Five-Star Retailer award in the first few months of operations. The award recognises compliance, commitment, a customer first approach, continual growth as well as cleanliness,” said Tukela Mthembu.
The business also earned the title of second runner-up in the Community Contributor Award, which is based on employment and community upliftment.
“We use our business to offer holiday jobs to students as well as offering opportunities to youth,” Tukela said.
The business also features a convenience store and restaurant on site called the Route 61 Café. It employs nine permanent employees at the gas station as well as two casual workers.
“I must also extend my gratitude to the ECDC that demonstrated faith in my business and provided R800 000 loan funding when others turned us away,” said Tukela.
Not only did the business obtain financial support from the ECDC but mentorship as well, with the ECDC coming in to examine the filing station’s books to see how the business is doing.
ECDC account manager Bulelwa Mahamba said the financier took the deal because there was a significant need for the proposed filling station.
“The business is situated in a developing, highly commercialised area, with a constant traffic flow of both light commercial and heavy duty vehicles and it is situated adjacent the Ntlaza taxi rank. The St Barnabas hospital is about 100m from site. The business has surpassed the projected turnovers and changed the face of the area,” said Mahamba. – SAnews.gov.za
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