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PE tech start-ups shine

Paula Gilbert
By Paula Gilbert, ITWeb telecoms editor.
Johannesburg, 26 Nov 2015
Taahira Tiry's accounting technology company, Fintac, is one of the start-ups under the wing of SNII centre manager Sipelo Lupondwana and his team.
Taahira Tiry's accounting technology company, Fintac, is one of the start-ups under the wing of SNII centre manager Sipelo Lupondwana and his team.

The Eastern Cape's tech scene is on the rise and one tech incubator's long-term plan is to help transform Nelson Mandela Bay into a smart city.

The Small Enterprise Development Agency's Nelson Mandela Bay ICT Incubator (SNII) saw 10 new ICT and technology start-ups established from 11 SNII projects in the 2014/15 financial year. The incubator says job creation growth was 18% higher than a year ago and the incubated businesses grew their turnover on average by 25%.

SNII centre manager Sipelo Lupondwana says the progress made in the past year is good news for the regional economy. This as the combined turnover of SMEs and incubator beneficiaries added R5.1 million to the economy of Port Elizabeth.

"SNII will also continue to entrench itself as a catalyst for local economic growth through technology. In short, we want to play the lead role in transforming Nelson Mandela Bay into a smart city, and we want to be the go-to technology partner for key economic sectors such as maritime, automotive, manufacturing and renewable energies," says Lupondwana.

He says one of the immediate goals is to unlock meaningful partnerships with global and local private firms.

"Enterprise development cannot succeed without support from big technology and ICT companies. We want to bring blue-chip companies such as Microsoft, IBM South Africa, Datatec, Dimension Data, Siemens South Africa, Altech, EOH and Pinnacle Technology into this incubator, to share ideas, technologies and leadership with us and to help groom a next generation of tech entrepreneurs."

He says the incubator is also looking to create partnerships with international universities, such as the Massachusetts Institute of Technology in the US.

The Eastern Cape incubator has 26 SMEs in various stages of incubation, while the total number of clients ? which represent the incubator's total portfolio of projects, SMEs and incubator beneficiaries - stands at 96.

Lupondwana says SNII will launch a research and development laboratory next year, which will further drive innovation for the region.

In terms of job creation, 37 direct and 81 indirect jobs were created between April 2014 and March 2015 by new ICT and technology start-ups in the region.

"Importantly, 100% of incubated enterprises supported by SNII survived their first year in the market, while 94.5% of enterprises were still in operation at their second year of business. Statistically, approximately 71% of small business start-ups do not survive their first year in the market," according to Lupondwana.

He says the incubator will continue to drive small business enterprise development through support from business coaches, mentors and business support services.

"SNII will serve civil society, especially in delivering technological innovations to the Eastern Cape departments of health and education."

Success stories

The incubator has seen a number of its clients succeed and win awards over the past year.

The Millbug Vuya Tablet PC ? a low-cost, solar-powered Android tablet ? went on sale last year and has had a lot of buzz around it, even in international media, for its ability improve connectivity and information access in areas without electricity.

Software development company Digijiz, which specialises in artificial intelligence, cloud solutions and hosting, found success as MD Musa Jali was accepted as one of 38 young South Africans in a global e-mobility programme in Germany.

Popsiebelle, an innovative children's brand of tactile accessories, has won several awards, including the Samsung Designer of the Year Award 2014.

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