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‘I Started Avoiding Calls From Creditors’

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On the day FORBES AFRICA meets Gavin Mkhabela, the sun is shining as bright as he had hoped his future in business would be when he resigned from the banking sector. He thought he would be the person that would clean every working space across Africa, but little did he know that it would be his bank account that would be cleaned out.

At a business park in Midrand, 30kms north of Johannesburg, Mkhabela is energetic and full of life, unlike six years ago when he was broke and depressed.

“All I did was to wake up, eat and sleep again,” he says.

It started in the basement of his work place, where he had spent four hours in his car contemplating his hasty resignation.

“I like to believe that I am a very creative person and the corporate industry tends to be stagnant at times. There are certain ideas which you may not implement because they are just not ready for them. My lifestyle was also inflated but not in accordance with my income at the time,” he says.

Soon after his resignation in 2011, Mkhabela received his pension payout which he used to start his cleaning company GavCare.

“I was excited; it was my first business. I used my provident fund to start the business,” he says.

Mkhabela  used his credit cards to finance the new business.

“My fiancé and I bought everything new. We even bought a new carpet machine that was being phased out. We were just spending,” he says.

READ MORE: Slaves To Debt: Oh, What We Owe!

Things started well for the young entrepreneur after he received contracts with corporate giants, such as Standard Bank and Nampak, and a few local law firms.

In 2012, he sold 40% of his business. Then, in 2013, he was chosen for a business mentorship program in Germany, which was in partnership with the government’s National Youth Development Agency (NYDA).

“When I came back from the month-long mentorship program in Germany, everyone was celebrating me. They would say ‘you have made it in life’,” he says.

But his worst days were lurking around the corner.

“Out of excitement, I called my business partner to tell her that my mentor had decided to inject R2 million ($169,000) into our business, and he would donate equipment for our business.”

Soon after, his elation turned to despair.

On a cold Friday morning his business partner pulled out.

“We were at our detergent store in Tembisa when she proposed that she would like to pull out of the business… I still ran everything via my credit card and had overdrafts,” he says.

To make matters worse, GavCare was in a cash flow crisis.

“Our company’s financial controls were a mess, there was money coming into the business but more money went out. We also had more people working for us than we actually needed. Our operational costs far outweighed our income,” says Mkhabela.

He was also living beyond his means.

“My biggest mistake was to continue living a lifestyle that I lived when I was working in the corporate world. Most of my provident fund payout went to buying the company’s equipment and keeping the business afloat. I started skipping my monthly repayments, but even worse started avoiding calls from creditors,” he says.

“I got a lot of judgements under my name and was eventually blacklisted by creditors. We took business loans and I extended my credit facilities on my personal capacity in an effort to keep the business going for two years. I also went to loan sharks, an even more [costly] mistake that almost put my life at risk. It was all in an effort to survive and help my financial situation every month the loan amounts from the loan sharks will increase as I couldn’t settle them.”

He then fell into depression.

“One by one, I kept losing things and getting more in the red. I got depressed… My relationship with my fiancé also started to suffer, because I had no financial contribution to the relationship. You know when the man loses the ability and the power to provide, you drive your woman away,” he says.

Mkhabela then got the dreaded call.

“All I did for months was to sleep, wake, eat and sleep again. Then the repossessor called me,” he says. “They took my [VW Golf] GTI, my furniture and every other thing I had worked so hard for. Luckily my house was paid up,” he says.

“It was at that point that I realized that I needed to get up and do something,” he says.

READ MORE: South African Billionaire’s Fortune Plunges More Than $2 Billion In A Day Amid Accounting Scandal

Even though he was down, he was not out of ideas.

“I bounced back in 2014, when I decided to become a financial advisor so that I could save others from being in the same situation as me,” he says.

Mkhabela says he now has over a thousand clients. In 2016, he published his book, Financial Planning 4 What? The book addresses the problems experienced by many regarding personal finance.

“I wrote the book on financial planning and started developing an interest in educating people about financial management from a personal and business finance point of view. It stems from my whole experience because all that was needed was proper financial controls and proper planning,” says Mkhabela.

Looking back, he wishes he did things differently with his business and his business partner.

“I did a lot of introspection in the manner in which I ran things, because I studied a business course,” says Mkhabela.

Mkhabela’s worst day was a lesson that can’t be taught in lecture halls. It is also a lesson he’ll never forget.

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IN PICTURES | Truck Entrepreneur Drives Style Movement

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Collaborations are key for the development of Africa’s sports economy


On a busy road in Soweto, in the southwest of Johannesburg, taxis go about their daily drill, stopping to pick up passengers outside the apartment-tenements of Chiawelo. Here, a truck of a different kind is stationed next to an old container and a car wash.

It’s owned by Siyabulela Ndzonga, a small entrepreneur dabbling in fashion, who has turned it into a concept store, on wheels.

Ndzonga,who brands himself Siya Fonds (S/F) – after a nickname his mother gave him as a baby, has been associated with the South African Fashion Week and with reputed designers such as Ole Ledimo, the founder of House of Olé, and stylist and fashion guru Felipe Mazibuko.

I didn’t even study fashion but it’s interesting how I’m actually making an impact and contributing a lot in the fashion industry, says Ndzonga. 

It was around 2011, when he sold second-hand clothes on the trendy streets of Braamfontein in Johannesburg, where only the cool kids would hang out.

“I was big on thrifting; selling second-hand clothes. I would thrift, resell,thrift, resell.”

His hard work earned him a stall at one of the flea markets in Johannesburg. At this point, Ndzonga was still employed at a retail store. After work and on weekends, he would be hustling on Johannesburg’s streets, all for the love of fashion and because people loved his work.

Ndzonga saw a business opportunity, quit his retail job and registered his brand in 2013. Later that year, Toe Porn socks contacted him and requested he consult for them.

“Brand consulting means that I come in and take their clothes and use them to translate the current fashion trends, translate them to how I think [people]should be dressing in terms of fashion. I actually became a designer because I set trends before they would trend. I would set the tone, narrative and navigate where fashion should go in the whole world, not just in South Africa,” he says.

His fame slowly grew and he started making clothes for others, traveling by taxi to CMT (cut, make and trim) factories in Germiston, 42kms from his hometown. 

“In 2015, that’s when I really saw that I am growing as a brand and that’s when I started consulting for international brands like Palladium Shoes, Fila and Ben Sherman.”

The business grew but he had to travel to others parts of country and that exercise was taxing.

He stopped making clothes and paused his business.

“The whole of 2016, I focused on consulting and saved money to set up a truck. I needed a store so people could come in and purchase Siya Fonds from the truck. This whole thing of delivering is not me, I can’t do it,” says Ndzonga.

“I initially wanted a container, but the truck was a better, fresher alternative. I’m not the first to do it, but I’m the first in Soweto. I set it up and people love it because it’s bringing popular culture to Soweto. I had to trust myself that’s it’s going to work and it did.”

The truck had been lying unused when Ndzonga purchased it, and he overhauled it with a lick of paint and an infusion of color and character.

I got another truck to pick it up and bring it to the current location in 2016.

In March 2017, the truck was launched as a concept store and he called it Block 88, as it encompasses other brands as well.

“Business was not so great after the launch. It only picked up after a few months of selling a few international brands that I consult for. We had seven brands in the store.”

He sells t-shirts, caps, jackets and jumpsuits. A two-piece suit sells for R1,400 ($97).

The next step for Ndzonga is to have stores in all the neighborhoods in Soweto and major South African cities.

Since the inception of his truck, he has also injected some vibrancy into the community.

He organizes art development programs and conversations around social issues on Fridays outside the truck, gathering youth and children.

“Conversation Fridays is like TED-talks. It’s bringing conversations to the township instead of having them in the city or suburbs and speak about what creatives are facing in the creative space and industry,” he says.

Now, he works as a consultant with a consumer agency and collaborates on a number of brands, also doing research for them. As the hustle and bustle quietens down at sunset in Soweto, Ndzonga’s trendy truck shuts shop. Tomorrow will be another day as a beacon of hope and vibrancy on a Soweto street.


Siyabulela Ndzonga of Siya Fonds. Picture: 
Motlabana Monnakgotla

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