Recognising the fact that youth-owned business can play a rather big in the South African economy, the Industrial Development Corporation (IDC), National Youth Development Agency (NYDA) and small enterprise finance agency (sefa) launched a R2.7-billion partnership in 2013.
To take that further, they have expanded its reach into the Western Cape, and has set aside R1 billion at prime less 3% to provide a fund for youth-owned businesses in the province with the aim of creating jobs.
“This partnership is a clear and firm commitment from the three entities to support young business entrepreneurs so that they can play a critical role in tackling unemployment challenges in South Africa,” said IDC chief executive Geoffrey Qhena in a press statement.
Since the start of the project, five provinces have already been exposed to the fund, and assisted a number of businesses, providing finance, business support and other services offered by the three partner institutions.
“We will provide pre-investment business support to qualifying clients in the form of grants, mentorship, and access to our voucher programme and market linkages. Those who qualify will be referred to sefa and IDC for funding,” says NYDA chief executive Khathu Ramukumba.
The total amount set aside would be R1.7 billion towards youth-owned enterprises over the next 5 years.
“Young people have the opportunity to access loan finance with support from our institution for start-up up and expansionary businesses. We encourage youth to own and manage sustainable enterprises particularly in productive sectors of our economy that have potential for growth and job creation,” added sefa chief executive Thakhani Makhuvha.
[Source – NYDA, Image – CC by 2.0/Dietmar Temps]