Akubeziyesuka Co-operative

The Akubeziyesuka Co-operative has been in operation for over ten years. It is located in Folweni and has a number of business activities that include block manufacturing, driver training, crèche/child care facility and a logistics operation. The chairperson, Philisiwe Purity Mnguni, is a vibrant, highly motivated individual with exceptional leadership qualities. The co-operative started with four full time employees, and one part time, seasonal employee. PPT anticipates 20 new jobs being created, 15 of these have started since PPT commenced supporting the enterprise.

Photographs (above) show the original site and production of blocks. The pictures also show the delivery vehicle and block making equipment which the enterprise has purchased through business savings.

Job creation

• Initial jobs prior to PPT involvement: seven jobs
• Created to date: an additional 15 jobs
• Approximately 5 additional jobs can be created by the business.

The additional job creation can occur once a new truck is purchased, the new machinery is operational and additional contracts or orders are secured. There is consolidation of houses taking place in the area and potential for new  orders.  The  jobs  created  so far are  for manual  workers operating the  block  press, concrete mixers, and assisting with deliveries.

Achievements

• IsiQalo basic business skills training provided by PPT helped to improve business operations and according to the entrepreneur the profits have increased, an internship position for a local student from Comtech college studying book-keeping was created and new equipment was purchased between 2014 and 2015 as follows: 1 ton bakkie for operations / deliveries; 2 new taxis (now in operation).
• There has been a 10% increase in salaries being paid to staff.
• Started  a  new  driver  training venture,  closing the internet  venture  which was  not  profitable  and decision to make alternate use of the space.
• Able to register with the Department of Social Development for the crèche (PPT assisted in business plan according to the Department’s format).
• Enterprise  has  become  better  at  saving  and  using  their  capital  for  business  improvements  (e.g. extending  the  block-making  slab,  investing  in  an  advertising  board,  starting  the  SABS  compliance process by looking for electric block making machine to meet the required standards)

Way forward

• PPT will assist the  enterprise to complete and submit  an application for Small Enterprise Finance Agency (SEFA) finance and develop a more effective and compliant business plan e.g. by: Assisting the enterprise to improve financial and administrative records e.g. maintain all financial and job creation records;  improve  book-keeping;    getting  audited  financial  statements.  This  included  assistance  in revising the existing plans and consolidating them into a final, combined business plan.
• Enterprise must obtain SABS accreditation for blocks to gear up to supply to the local hardware store and to supply RDP housing construction projects in Durban and surrounding areas.
• Develop new markets by advertising in local newspapers and scanning tender bulletins to supply contractors who have recently won tenders in the area as well as create lists of possible buyers and engage  all  hardware  stores  in  the  area.  PPT  will  assist  to  assess  the  possibility  if  supplying  the contractors based on quantities and capacity.

Learning

• IsiQalo plays an important role regardless of any level training and educational level. The chairperson is a Technikon graduate but has applied skills acquired via IsiQalo training effectively in the business.
• A financial advisor would be a useful support for the business to start assisting the owners with doing cashflow projections and calculation of profits. PPT is now providing such specialist support.

Contact The Akubeziyesuka Co-operative:

Philisiwe Mnguni: 076 8269 228