Castro ICE
| Business Location: | Rural & Township |
| Province | Western Cape |
| Branch: | George - Eden |
| Business Start Date: | 2021-03-16 |
| Busniess Type: | Company |
Business Dynamics and Challenges
Business Activities:
Castro Ice is an ice manufacturing company owned by Bongani Fuba. The business is based in Thembalethu and started operating in 2020. The business manufactures and supply ice to spaza shops and superettes in the area. Ice is manufactured using domestic ice-cube trays in the fridge and freezer. The ice is manufactured, stored and packaged in a small domestic ice-making machine.
Currently the business supplies twenty (20) stores and there are opportunities for expansion. Bongani wishes to establish the business to become a preferred provider to Taverns, Fuel Stations and doing tenders.
The business lacks the capacity to deliver to many clients. Deliveries are made daily, but Bongani has realised that it is not feasible taking into account the limited capacity to produce the ice and the expenses associated with daily trips. Deliveries are now being made once or twice a week depending on the client’s requirements and orders
Challenges/Needs:
The business experienced the following challenges:
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Lack of finance and additional equipment to increase production;
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Lack of capacity to deliver timeously;
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Lack of packaging such as labels and bar code, and
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Lack of cost training.
Intervention Insights and Results
Intervention Details:
The client approached Sedfa Eden Branch for assistance; he consulted with one of the Business Advisors who conducted a Critical Planning Exercise (CPE) on the business. The CPE is a planning tool that prepares financial projections for twelve months or more and simulates various “what if" scenarios. It assisted Mr Fuba to make accurate, realistic financial predictions and a plan to significantly contribute to the business viability. The CPE showed that the business income needs to improve to ensure sustainability.The following interventions were implemented:
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Development of Marketing Material;
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Facilitate access to equipment through the Informal Micro Enterprise Development Programme (IMEDP), and
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Facilitate access to equipment through the Garden Route District Municipality (GRDM).
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Development of Marketing Material;
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Facilitate access to equipment through the Informal Micro Enterprise Development Programme (IMEDP), and
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Facilitate access to equipment through the Garden Route District Municipality (GRDM).
Outcome Details:
The following outcome was achieved:
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Turnover increased from R 13 720 in 2023 to R 16 942 in 2024 an increase of 23.48%.
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Turnover increased from R 13 720 in 2023 to R 16 942 in 2024 an increase of 23.48%.
Client Feedback
Client Comments:
“I sincerely appreciate Sedfa's assistance in getting labels and packaging for my products, so thank you very much”.
