Classic cars lead to booming business in rural Eastern Cape



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By Staff Reporter Article publication time6h ago

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JOHANNESBURG – The rural Eastern Cape business owner and job creator refused to be left in the dust and with just R2,000 in her pocket, she has turned her business into a global force to be reckoned with.

Inspired by a TV show about vintage car restoration, Nosipho Kholutsoane saw a path out of poverty and an opportunity to develop industry and skills in the remote rural town of Mount Fletcher in the Eastern Cape.

With the R2 000 in his pocket, he bought a rusted 1947 Pontiac.

Five years later, Ms Kholutsoane, 39, employs four people in her business, Lereku Trading Classic Cars, has a customer base of vintage car enthusiasts from around the world and is currently completing the Small Business Academy program (SBA) presented by the Stellenbosch University School of Business (USB).

Nosipho Kholutsoane, Lereku Trading Classic Cars, working on a 1960 De Soto. Image: supplied.

She was one of 19 small business owners sponsored by the Joe Gqabi Economic Development Agency (JoGEDA) to participate in the program to train entrepreneurs to develop sustainable businesses in the northernmost district of the Eastern Cape.

The mostly rural Joe Gqabi district includes Aliwal North, Barkly East, Burgersdorp, Maclear, Steynsburg, and Ugie.

Formerly involved in the construction industry, Ms. Kholutsoane now combs the area’s dirt roads and farms in search of disused classic cars dating from the 1930s to the 1970s, buying them and returning them to their former glory and marketing them all over the world through social media. .

He has taken on commissions from all over South Africa from old car owners in need of restoration, and he also rents his restored vehicles for special events and photo shoots, as well as participating in classic car shows across the country to promote his business. .

“My team and I have a passion and love for these vintage classic cars. Rebuilding and restoring them to an excellent standard and with a good value for money, it makes us and our customers happy that they can drive a unique vehicle and feel like a king or queen, ”said Ms. Kholutsoane.

Kholutsoane, Lereku Trading Classic Cars, with 1947 Pontiac. Image: supplied.

The mother of four sees her business as a way to build skills among young people in an impoverished and underdeveloped area, and build a future for her school-age children.

Mount Fletcher, with a population of around 11,000, lies deep in the rural Eastern Cape, 40 km west of the Lesotho border and the nearest urban center, Mthatha, is 170 km away, lo which makes it an unlikely location for a vintage car restoration business.

But the location has a strategic advantage, says Ms Kholutsoane, as Mount Fletcher is on the R56, the shortest route between KwaZulu-Natal and the Eastern Cape, allowing you to get international clients for your business as tourists Travelers from Durban to Cape Town stop to take a look at the extraordinary sight of classic cars being worked “in the middle of nowhere.”

Competing against established classic car restaurateurs and custom teams in Johannesburg, Pretoria and Mossel Bay, she says the SBA program has inspired and equipped her with the skills to “put Mount Fletcher on the map of classic car restaurateurs in South Africa”.

“The Small Business Academy made a huge difference in my business and opened my mind to opportunities to grow the business and market it better. Before I didn’t understand profit and loss, but now I can track whether the business is growing or declining, and the best part is that I can see that the business IS currently growing.

“I can also see now how many more people I can employ, how I can spread skills to more young people and create job opportunities,” he said.

The SBA program has also helped her map and plan for future needs, such as a proper covered shop and a much-needed chrome plating machine for restoring bumpers and metal work.

This was the fourth year of JoGEDA’s partnership with USB Small Business Academy to bring its development program, designed specifically for historically disadvantaged entrepreneurs in low-income areas, to the district and the participation of selected local entrepreneur sponsors.

JoGEDA Executive Director Ayanda Gqoboka said that the results of the more than 60 companies that have gone through the program have been “outstanding” in allowing entrepreneurs to structure, focus and plan their businesses.

He said that empowering small businesses to get out of survival mode and become sustainable engines of economic growth and job creation was part of JoGEDA’s strategy to diversify economic activity in the district, unlocking growth potential in sectors. such as agricultural processing and manufacturing, and creating local employment opportunities that retain youth in the district.

SBA Director Dr. Marietjie Theron-Wepener said the program was first developed and implemented in Cape Town municipalities, in response to the high rate of small business bankruptcies, and that it was delighted with the positive results seen in its eastern Cape extension.

“Our vision is to make a difference in the lives and businesses of small business owners in low-income communities, building sustainability and eventually supporting them in such a way that they can play a vital role in alleviating poverty through job creation.” , said. .

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