Major companies lose out as EMIA does its bit for SMEs

THE INTRODUCTION a year ago of EMIA has seen a whole change of course for export assistance in SA.
In the experience of a well-placed industry source who preferred not to be named, the large companies are not getting anything out of it. It's not aimed at established exporters in large corporations, he said.
Indeed not, and is therefore fulfilling its intent, according to Eugene Grimbeek, writer of EMIA in his days with the DoT&I (Department of Trade and Industry) - more recently an adviser with the Exafin consultancy, and currently contracted to the Department of Tourism to devise an export incentive plan (encouraging incoming tourism) for it.
Confirming our source's definition, Grimbeek said: It's for SMEs (small and medium sized enterprises). That's who I wrote it for - those companies which really need the help to get them into the export market.
At that, Grimbeek pointed FTW towards Mahomed Vawda, deputy-director in charge of EMIA at the DoT&I - replacing Grimbeek, and very familiar with the scheme, he suggested.
Indeed, that's the way it is, Vawda told FTW. We're looking at SMEs, he said. The sort of area where EMIA-encouraged extra business of R30-million is noticeable on our charts.
Boats, cut flowers and porcelain dolls have all been productive recipients of EMIA since last August - and the boats company alone produced R10-million in extra exports from an EMIA-assisted appearance at an international exhibition. And they're all beautifully labour intensive, said Vawda (Lots of people out cutting flowers after they got extra business through us) - thereby fulfilling the job-creative desire of EMIA.
Since the new EMIA was established last year, Vawda said, we have been stimulating a lot of feed-back from our clients in the scheme. We have been looking for credible information in our assessment of the project.
So far, since last August's launch of EMIA, figures for applicants in August and September have now been tested over six months.
There were 107 applicants in August. With EMIA expending R2 318 000 in August (average per beneficiary of R21 663), and by a straight arithmetic calculation against export turnover from the group, Vawda estimates the cost/return ratio is 36,80 - a rand in EMIA-spend equals R36,80 in exports.
The participants also reported that 190 extra jobs had been created - basically using the existing capacity, said Vawda.
The breakdown of applicants were: 27 big companies; 16 from the previously-disadvantaged community; 59 SMEs; and 5 approved applications which were not taken up.
The September readings (up to March) showed a similar trend-scale amongst 242 applicant companies. The cost of EMIA was R5 373 000 (R23 463 average each), and this at a cost/export sales ratio of 32,69. The jobs created were reported at 714.
Breakdown of applicants was: 75 big companies; 25 from previously-disadvantaged; 129 SMEs; and 13 applicants who didn't take-up the offer.
There are no benchmark figures against which to run comparison, but Vawda describes the results so far as being heartening. Grimbeek stated that they were more and better than I anticipated.
But it's not all as smooth and easy as it could be from the applicants' point-of-view, according to SACOB (SA Chamber of Business) - although only constructive criticism is intended, according to SACOB's EMIA-person, Lucy da Pieade.
We have had a lot of feedback on the administration of the scheme, she said.
One complaint was that there was too long a period between the claim and the payout.
We've taken this up with the DoT&I, said Da Pieade. But they had to sort out all the GEIS claims first. This was due to be finished in December/January, so claims since then should be better.
There is also too precise a submission required before payments under the primary marketing scheme are likely to be accepted, members have told SACOB.
The overall SACOB viewpoint is that exporters in SA are just not getting enough support for their efforts.
Da Pieade suggests that various other national schemes are being researched - with a view to finding a better alternative.
The scheme is due to be reviewed soon, said Da Pieade.
BY ALAN PEAT