Venture capitalist and former First National Bank CEO Michael Jordaan says his tech-based start-ups have adapted well to the COVID-19 lockdown.
Wesgro – the official tourism, trade and investment promotion agency for Cape Town and the Western Cape – says some of the Jordaan-backed tech start-ups are saving on the costs of travel and rentals, but the wine delivery business he invested in has had to suspend all deliveries.
Almost all Western Cape businesses have been knocked in some way by the COVID-19 lockdown period; however, there are signs of resilience in these trying times, says Wesgro.
Among the start-up companies Jordaan backs are Bank Zero, Alto Africa, codeX, Compuscan, execMobile, GoMetro and Snapplify.
Jordaan is one of the entrepreneurs working alongside Wesgro to ensure business owners can learn from each other and access the information they need to get through this time and retain business continuity.
Wesgro says a key platform is the COVID-19 Content Centre, supportbusiness.co.za, which is a central point for COVID-19-related information for Western Cape organisations.
Other business people who are working with Wesgro on this initiative include Luvuyo Rani, co-founder and CEO of Silulo Ulutho Technologies; Simone Musgrave, CEO of Musgrave Spirits; Zahira Asmal, founder and director of The City; and Aisha Pandor, founder and CEO of SweepSouth.
Tim Harris, CEO of Wesgro, says the Western Cape Government, City of Cape Town and Wesgro jointly launched the content centre to help companies access the various forms of financial support which have been made available.
Jordaan welcomed initiatives to support business and called on government to make the process of applying easier.
“While there are many well-intentioned initiatives, the main constraint has been a smooth application process. For example, in Switzerland, businesses only need to fill in a one-pager and if successful, funds are transferred on the same day,” he says.
Rani believes this time could be an important catalyst for connectivity in townships.
“I believe this crisis will result in many new businesses being formed. It will open opportunities which entrepreneurs can seize. I see there is a future online, where education will be much more affordable and accessible. I also see e-commerce becoming something that can be done in Khayelitsha or Philippi or from anywhere, where you can start a business, run and grow it,” Rani says.
Concluding, Jordaan notes: “One lesson I’ve learnt during the COVID-19 crisis is that not enough people save. And, unfortunately, not enough businesses build up cash reserves for tough times. It means that many individuals and business owners are now very exposed.”
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