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Barely 14 years after he completed his matric, Khaluwe Mehlomakhulu’s (31) dream of running his own business came of age this January when he became the proud owner of a popular fast-food franchise ‘The Fish & Chips Co.’

Growing up in the mountainous region of Maluti Township in Matatiele was no easy ride for Khaluwe who has worked feverishly pursuing his childhood dream of becoming a respected and successful businessman.

Based in Mount Fletcher in the former Transkei, the fish and chips outlet, which employs seven people, opened its doors in January this year with the help of a R450 000 business loan from provincial development financier, the Eastern Cape Development Corporation (ECDC).

“Before I approached ECDC for loan finance to start the business I had already secured R250 000 through my own efforts to invest in this venture. It is this money that assisted me with covering the training of my staff.

“It is in August 2013 that I approached ECDC for a loan which was approved in November last year. I used the R450 000 loan to buy ‘The Fish & Chips Co.’ name and equipment,” says Khaluwe.

According to ECDC account manager, Bulelwa Mahamba, franchise businesses qualify for term loans which are granted for a period of 36 to 60 months. It is part of the loan requirements that the loan recipient be able to make a meaningful contribution from their own resources which offers a reasonable surety for the remaining balance.

“Term loans can be used for financing the acquisition of equipment, furniture, fittings and even bolster working capital. You are eligible for the loan as long as you adhere to the terms and conditions of the loan; and dedicate yourself to making repayments at agreed intervals, which is subject to the arrangements you made with ECDC.

“For us, Khaluwe’s ability to accumulate some cash of his own, was an indication of his ability to adequately handle his financial affairs. The franchise was the first of its kind in the area of Mount Fletcher; which proved to be the ideal location boasting a stable customer base,” Mahamba explains.

Khaluwe, whose first job was as budget manager for the Matatiele Local Municipality says he had to go through various jobs which have prepared him to take on the responsibility of running a successful business.

After completing matric, the father of two went on to obtain a qualification in Cost and Management Accounting from the Port Elizabeth Technikon (Nelson Mandela Metropolitan University). His pursuit of this course was not too far-fetched as, apart from being a businessman, he envied qualifying as a chartered accountant.

“Although my first job wasn’t my dream job, I learned to enjoy the job I was doing. This worked to my advantage as I later met my then boss, Mthethunzima Mkathu, who advised me on approaching ECDC for start-up funding.

“I was deeply inspired by the area I am from and saw a fast-food franchise as the best option as it catered to different types of people. Like any other business, the first couple of months was a bit difficult as we were trying to break even, make profit and pay-off our debts," explains Khaluwe who also had a stint as income manager at Alfred Nzo District Municipality.

In addition to his recent accomplishment, Khaluwe intends to establish his second outlet in the next three years’ time and further explore his newly found passion in property development.

Issued by Eastern Cape Development Corporation