AUCTION FIRM FORMED FOR SMALL BUSINESS
Zimele to target grassroots
THE African Council of Hawkers and Informal Businesses has teamed up with experienced auctioneer Chico da Silva to form a company that will take all types of domestic and industrial stock to small businesses.
“We are sourcing stock for ordinary people and people who don ’ t have the buying power,” says Da Silva.
The new company, which will be called Zimele Auctioneers, will target informal traders in the country ’ s 22 regions.
Da Silva says the business concept came after the realisation that people had to travel all the way to Johannesburg to get stock for resale in their areas.
“They often have to spend money they should be investing in their businesses, to travel hundreds of kilometres to the big cities,” he says.
Goods will be auctioned to small entrepreneurs for resale or manufacturing where the people live and work.
The auctioneering company will use platform 19 at Johannesburg ’ s Park Station, which is a hub for small traders, as a case study for its plan.
Achib has been running a wholesale at Park Station that sells goods to small retailers.
“We want to make platform 19 a stepping stone for small black entrepreneurs. It will not only be a hub for informal traders, but this is where we want to start a new business avenue for individuals to grow, ” Da Silva says.
“We will use platform 19 to first bring goods closer to the people. Secondly we will use it to impart the skills we ’ ve learnt over the years to small business owners.
For example, traders can get stock to grow their businesses or they can resell and still make a profit,” he says.
Achib president Lawrence Mavundla will be executive chairman while Da Silva will be the chief executive officer of the company.
Mavundla, who is also president of the National Federated Chamber of Commerce and vice president of the Black Business Council, will mainly be based at Zimele ’ s head office in Germiston, Ekurhuleni.
Mavundla says Zimele, which is 60% black-owned and 40% by Da Silva, is expected to reach an ambitious target of R1-billion revenue in its first year of operation.
Zimele, as one of the first blackowned companies in a rather untransformed R10-billion industry, is also expected to give companies an opportunity to dispose of their assets.
Says Da Silva: “This deal is not just another club for the big boys. The auctioneering industry needs to change, and I strongly believe that this is one of the outlets to bring about that change.” –
‘ We will use Platform 19 to bring goods closer to the people’