Past experience on Gijima KZN funded projects has shown that grant beneficiaries often have trouble understanding the organisation’s project management system. This impacts on their ability to manage their projects in accordance with Gijima KZN’s requirements.

In response, Gijima KZN hosted two Project Cycle Management workshops to help grant beneficiaries to establish internal project and financial management systems.

The first workshop was held for BEF and LCF CAP Phase 5 grant beneficiaries at the Khayalembali Lodge in Durban on 26 and 27 November 2007. A second workshop was hosted for LCF IMP 4 (ii) grant beneficiaries at the Redlands Hotel and Lodge in Pietermaritzburg on 21-22 January.

Each two-day workshop focused on the various procurement modalities and reporting requirements specific to these project types.

Content included:

• Project Generation, Contracting and Procurement
• Project Activity Schedules
• Management of a Gijima-funded Project
• Preparation of an Interim Monitoring Report
• Monitoring Visits
• Closure of Gijima-funded Projects

Jay Aniruth, Gijima KZN Fund Advisor reports: “Feedback from the participants was very positive. Most attendees felt that the sessions did an excellent job of improving their understanding of Gijima’s PCM processes, required documentation and project management systems, although a common recommendation was that time management be improved for future workshops.”

Grant beneficiaries of the most recent Call for Proposals have proven to be more aware of Gijima KZN requirements and are managing their projects and budgets more successfully. This highlights the need for further workshops to provide grant beneficiaries with sound advice regarding internal project management and financial management systems.

Gijima KZN has also noted suggestions from participants, which included calls for more frequent communication from Area Managers, closer supervision on projects and more regular communication through newsletters and the Internet.

An innovative skills training project in the Empangeni region has received funding to the tune of R3,384,000.00 from Gijima KZN towards an estimated R6 million expansion project which will accelerate its work in uplifting the local community.

The Zikulise Community Upliftment Project has been housed within the Empangeni Arts and Crafts Centre since it was awarded the contract by the City of uMhlathuze in November 2006. Plans were made to develop the project into a full-blown training centre known as the Zikulise Entrepreneurial Skills Training Centre (ZEST), but these required funding.

Today, thanks to support from Gijima KZN, the City of uMhlathuze and other donors including Exarro KZN Sands and ABSA Foundation, the centre is extending its premises and will continue to support and encourage local economic development through high quality skills training, small business support, job creation and poverty alleviation. Zikulise also plans to partner with other organisations to offer outreach skills training programmes, HIV AIDS orphan skills training, and sponsored apprenticeship opportunities at local businesses.

Zikulise CEO Julie Jonson said that the first 30% tranche of funding had been received from Gijima in February 2008 and would be used towards the purchase of equipment and furniture, a light delivery vehicle, construction costs and operational costs. The Zikulise project includes the upgrading and extension of the Empangeni Arts and Crafts Centre, the construction of a small office block and a training pottery. Also included in the construction phase is the building of long-term incubator skills training rooms for trainees who have successfully completed the Zikulise entrepreneurial training courses. Jonson says that it is Zikulise’s vision to uplift the local community by addressing the unemployment crisis, the failure rate of small businesses and the plight of HIV Aids orphans. It also aims to provide incubator and short-course skills training, support, advice and mentorship.

“Our highest priority is the creation and sustainability of new and existing small enterprises that have a real potential to contribute to the local economy. We will have a particular emphasis on the creation of black-owned small enterprises that will grow into viable and sustainable businesses,” she says.

Zikulise currently serves a cross-section of people including local women, the youth, the physically disabled, SMMEs, co-operatives and entrepreneurs. HIV/Aids orphans and even ex-offenders and offenders from the local Qalakabusha prison will be targeted as beneficiaries in the future.

Thus far seven full time and four part time jobs have been created directly at the centre, and a total of 90 direct and 810 indirect beneficiaries have been positively affected through Zikulise’s work. The extended project will, however, offer potential for much more.

Jonson works closely with fellow board members including Chairman Rob Barbour, Abbie Mchunu, Reverend Thabo Shabalala and Willis Nxumalo.

Says Jonson , “the word Zikulise means ‘to grow yourself’ in isiZulu and that is really what we would like to be able to offer people in our area – the opportunity to develop themselves and their community regardless of their financial or domestic situation. Our work does require intense support from the public and private sector, and we are pleased that Gijima KZN has assisted us so generously in meeting our goals.”

A two-day workshop, held on 14-15 November 2007 and conducted by Manoj Seonath of the Industrial Development Corporation (IDC), assisted Gijima KZN and the KZN DED to gain insight into the manner in which business plans are assessed by funding partners.

A standardised assessment procedure is necessary, particularly as grant beneficiaries progress from Gijima KZN’s initial review for 70% funding.

The workshop was very positively received by the team and gave insight into how Gijima KZN CAP’s were viewed through the eyes of some of the IDC and commercial and development financial institutions more generally.

The workshop included various presentations, followed by an examination of financial records and case studies to help attendees come to grips with the rigours of business plan assessment.

Further workshops, focusing on how to monitor the outputs of a project and how to assess the quality of technical reports from service providers, have been scheduled for the first quarter of 2008.

These will incorporate experiences and lessons from the Project Cycle Management Workshops, the Service Providers’ Workshop and the Assessing Business Plans workshop.

The Project Steering Committee of Gijima KZN meets quarterly to review progress and prioritise activities and focus areas for the upcoming quarter.

A meeting of the Steering committee was held on 22 February 2008 to review both the Fourth Quarterly report for 2007 and the 2007 Annual Report.

The meeting also provided the opportunity for Gijima KZN, its funding partners, district municipalities and other partner organisations to receive an update on the Learning, Monitoring and Research Facility (LMRF) and recap on lessons learnt and projects completed during the monitoring and evaluation process held during the period.

By the end of the reporting period, 33,2% of grants – a total of R49,713,319.00 – had been disbursed to successful applicants, with R12,527,166.00 disbursed over the quarter.

Eighteen projects were completed by the end of the period.

Counter funding to the value of R31,613,506.00 was secured during the fourth quarter for LCF Imp 4 (ii) grant beneficiaries.

Achievements

Project and funding related achievements in the fourth quarter included:

• Ongoing implementation of the CAP grant scheme, with five of the six LCF Cap 5 projects awarded grants.
• Ongoing implementation of the LCF grant scheme, with disbursements for LCF implementation increasing dramatically from R2,576,585.00 in the third quarter to R8,158,828.00 in the fourth quarter, bringing the total paid to LCF Imp projects to R19,166,053.00 by the end of the reporting period.
• Ongoing implementation of the BEF grant scheme, with 13 of 15 projects awarded under BEF 5 to the total tune of R13,570,388.00 by the end of the reporting period.

Other highlights from October to December 2007 included:

• The publication of 4 booklets in English and Zulu on various assignments completed under the Gijima KZN Programme.
• Submission of Programme Rider No.2, Contract Addendum 3 and Programme Estimate 5 to the ECD.
• Holding of various training activities including Service Providers Workshop, Grant Beneficiary workshops and training for PCU and DED counterpart staff on assessing business plans.

Challenges and Priorities

Challenges during the fourth quarter included:

• Project expenditure continuing to lag behind that planned in the Workplan
• The continual need to provide Contract extensions, with a total of 33 projects expiring by the end of December 2007

The Project Steering Committee earmarked the following priorities for the fourth quarter:

• Completion of contracting and first payments for BEF and LCF CAP 5 and LCF Imp 4 (ii);
• Closure of LCF CAP and BEF Phases 1 to 3;
• Second payments for LCF CAP and BEF Phases 4;
• Unlocking bottlenecks to release payments across all funds;
• Contracting and first payment to LCF Imp 4 (ii) grant beneficiaries;
• Launch and receipt of inceptions reports for NCF tenders (Emerging Consultants & LED institutions and Business associations);
• Award of LED Core teams tender;
• Finalisation of Household Survey tender;
• Continuation of Workshop series in co-operation with the LED Network;
• Workshops with Grant Beneficiaries;
• Monitoring visits;
• Processing of project extensions;
• Planning communication workshops for journalists and LED practitioners;
• Completion of Funding Awareness Programme and assessment of its success;
• Processing of the Programme Rider No. 2, Contract Addendum 3 and Programme Estimate 5.

Implementation Support Pack v4.0

The Implementation Support pack which is distributed to grant beneficiaries on CD-ROM and via the website has been upgraded to version 4.0 to accommodate minor changes in PRAG. Other tools developed by Gijima for project cycle management have also been updated.

Version 4.0 includes the new Gijima KZN branding.

This support pack provides easy access to Gijima KZN’s support material and administrative documents. The following documentation is available on the website:

• Gijima KZN Framework Documentation
• Procurement Monitoring & Support Unit - Support Material
• Monitoring Support Material
• Practical Guide to Contract Procedures for EC External Actions

Please access these documents here.

The Gijima KZN Support LED Programme has completed 18 projects to date with a total grant value of R4,539,992.00.

Completed Projects as at February 2008

Application No.	Beneficiary	Project Name	District
BUSINESS ENABLING FUND
BEF 001-020	Vulamehlo Municipality	LED Strategy	Ugu
BEF 002-003	Amajuba DM	Establishment of a Regional Economic Development Forum	Amajuba
BEF 002-011	Amajuba DM	Manufacturing Development Plan	Amajuba
BEF 002-023	Kwa Sani LM	Tourism Development Plan	Sisonke
BEF 002-026	Umtshezi LM	Development of LED Strategy and Plan	Uthukela
LOCAL COMPETITIVENESS FUND
LCF CAP 001-017	SDC Media	KwaSonto Tourism Development Project	Umkhanyakude
LCF CAP 001-034	Wildlands Conservation Trust	The Gumbi Land Claim	Zululand
LCF CAP 001-035	Wildlands Conservation Trust	Ngome Community Game Reserve	Umzinyathi
LCF CAP 001-040	Paton's Country Narrow Gauge Railway	Pietermaritzburg Southern Midlands Rail Tourism and Heritage Development Competitiveness Action Plan	Sisonke
LCF CAP 001-042	Illovo Sugar Ltd.	Planning for Small Grower Renaissance	Ugu
LCF CAP 001-059	Zululand Chamber of Business	Feasibility Study & Business Plan Development for Gelfuel Manufacture and Marketing Project	Uthungulu
LCF CAP 001-061	KwaZulu Natal Agricultural Union	KWANALU Agricultural Black Economic Empowerment Support Desk (Agri BEE)	Umgungundlovu
LCF CAP 001-090	Indian Ocean Trading	Business Plan for expanding the Nkandla Essential Oils Project	Uthungulu
LCF CAP 001-103	E.Gori & Associates	Development of Plan for Small Scale Emerging Farmers in Ugu DM	Ugu
LCF CAP 002-002	Gateway Project (The Project Gateway)	Gateway Tourism Initiative – Interpretive Master Strategy Plan	Umgungundlovu
LCF CAP 002-003	Project Preparation Trust of KZN	Preparation Of Led And Financial Service Models For Excluded Areas	Umgungundlovu
LCF CAP 002-015	uMngeni Municipality	Local Business Support Centre Feasibility Study	Umgungundlovu
LCF CAP 002-019	Kwa-Natal Banana Co-operative	Banana Outgrowers Business Plan Development	Ugu
LCF CAP 002-020	Dannhauser Malt (Pty) Ltd	Feasibility and Business Plan for Dannhauser Flour Mill	Amajuba
LCF CAP 002-025	KwaZulu-Natal Furniture Industry Assoc.	KZN Furniture Industry Cluster Development Programme	Umgungundlovu
LCF CAP 002-025-13	Umgungundlovu Further Education & Training College	Edendale Construction Centre of Excellence Incubator	Umgungundlovu
LCF CAP 002-032	Ikusasa Forestry Services	Ikusasa Forestry Cooperative Project	Uthungulu
LCF CAP 003-015	Ingwe Local Municipality	Ingwe Forestry Waste-Biofuel Project	Sisonke

For an overview of completed projects, please click here: