Providence Industrial Estate |01 July 2017
Minister satisfied with the way small businesses are functioning
The Minister for Employment, Entrepreneurship Development and Business Innovation Wallace Cosgrow said he was very impressed with the way the small and medium enterprises (SMEs) are functioning at the Providence Industrial Estate.
Minister Cosgrow made this comment after he and a delegation had visited five Seychellois owned SMEs on zone 18 yesterday morning.
The aim of the visit was to see the businesses’ successes and to listen to their constraints in a bid to improve their business environment.
This was the first visit which will be followed by visits to other SMEs around the country in the future.
Constituting 70% of business in the country, Minister Cosgrow said that the SMEs with their variety of products are very important in our economy as they provide job opportunities, retain foreign exchange, among other benefits.
He said government will push them further within the industry context of Seychelles so that they become more sustainable.
The delegation consisting of the principal secretary for Entrepreneurship Development and Business Innovation Pamela Charlette and other officials of the department was led on a tour of the businesses by the deputy chief executive of the Industrial Estates Authority Allan Kilindo and other officials of the authority.
The ministerial delegation first visited Union Roofing (Pty) Ltd, a roof manufacturing business located in the LAMCO building. The company produces roofing sheets, aluzinc fences, roof ventilators, steel and galvanised screws, gutters and other various products for home and businesses. Another product which caught the attention of the delegation was the company’s production of 14 square metre container houses which are built and designed according to the client’s specification. Co-owner Harry Savy, who guided the delegation on the tour of the factory, said that with the increase in demand for their product, they wanted more space so they could expand the business by bringing in more equipment, thus creating employment.
Minister Cosgrow and his delegation then visited the four small businesses in the Micro Enterprise Complex.
The delegation first toured a family tailoring business, ‘Elite’- soft furniture & upholstery, situated on the ground floor in the Leve Debrouye building at Providence. The firm sews cushions, curtains, re-do chairs, sofas, car seats, boat interiors, etc. The delegation was given a tour of the factory and a cloth storage next door by business member Melitine Marie. The company has been operating in the building since 2015. Ms Marie complained to the minister that the rent and utilities are too high to operate their business which is preventing them from expanding. She was told to seek help to re-look at their business strategies as he said the rent per square metre at the Leve Debrouye was the cheapest among those offered on the market.
Another business visited by the delegation on the ground floor of Leve Debrouye building was Energy Solutions Seychelles owned by Richard Hoareau. Operating in the building since 2015, the company deals in renewable energy products and maintenance services.
From there, the delegation proceded to the first floor to Hampers & Gifts, a small personalised gift business owned by Maria Thomas. On the verge of handing in her letter to vacate the building, Ms Thomas was advised by Minister Cosgrow to carry on her business in the building and to talk to the industrial authority to seek ways for her to improve on her business so that she could meet her rent. She said the rental was affordable but as a very small business, she could not make ends meet to cover her rent.
The last business that the delegation visited was a fresh noodle business, Delichef (Pty) Ltd, situated on the second floor of Leve Debrouye. Operating since September 2016, Delichef (Pty) Ltd produces fresh noodles which are distributed to hotels and local shops. Co-owner Mervin Pool told the minister that business was good but their operating cost was high due to the high cost of utilities and that is affecting a bit the sale of their product on the local market as some local stores are selling the product for R40 for a 500g retail price, bought with them for R29 wholesale. Minister Cosgrow advised them to relook at their business model and to seek and negotiate with new markets that will not put high mark-ups which might result in a reduction in the price.
Commenting on the high rental and utility costs by some tenants, Minister Cogrow said that the rental fee at the Micro Enterprise Complex is the cheapest commercially on the market at R156 per square metre compared to R300-R400 per square metre elsewhere. He said his ministry will work with the SMEs to help them seek ways to manage their businesses financially so that they meet the cost of their businesses.
On the high cost of utilities for businesses, Minister Cosgrow said that government is working on different options such as re-looking at the tariffs so that it will be affordable to all.
The Industrial Estates Authority manages the industrial estates at Providence and Perseverance on Mahé and Eve on Praslin.
The accompanying photos show Minister Cosgrow and his delegation visiting the various businesses at Providence yesterday.
