28 Feb Youth fund rolled out in the Eastern Cape
Joint press release from IDC, sefa and the NYDA
28 February 2014
A R3-billion partnership between the Industrial Development (IDC), the Small Enterprise Finance Agency (sefa) and the National Youth Development Agency (NYDA) was unveiled in the Eastern Cape on Friday, 28 February 2014.02.27
Launched in Pietermaritzburg late last year, the youth fund targets businesses owned by the youth.
For the majority of young South Africans, says NYDA acting chief executive Khathu Ramukumba, obtaining finance from conventional commercial lenders is a very real challenge.
“Often young aspiring entrepreneurs are rendered ineligible for finance due to their financial backgrounds coupled with stringent funding criteria,” says Ramukumba.
The partnership between the three agencies will facilitate access to funding by youth-owned businesses, making them active participants in the national economy and job creation.
The fund was launched after a Youth Accord was signed in 2013 between government and its social partners.
The IDC has set aside R1-billion from its Gro-e-Scheme to fund businesses owned by young entrepreneurs.
IDC’s chief executive, Geoffrey Qhena, says creating an enabling environment will help unearth the potential of youth entrepreneurship.
He says: “It is important that the youth takes advantage of the opportunities that are created through this partnership and contribute to both the growth of our economy and job creation.”
As part of the agreement, young people will receive professional coaching and mentoring through the three institutions.
In 2012 sefa, a 100% IDC-owned agency was set up to provide access to finance for small businesses and co-operatives seeking funding of up to R5-million.
”Our partnership with IDC and NYDA is a catalyst for the development of viable youth entrepreneurship. Through this collaboration we continuously seek to assist and to empower the youth by giving them business support and access to finance. We further encourage young entrepreneurs to venture into the productive sectors of the economy,” says sefa chief executive Thakhani Makhuvha.
The NYDA will serve as a conduit for the screening and recommendation of young entrepreneurs to access funding offered by the IDC and sefa.
This is the first of a series of roadshows through which the three agencies will promote and increase the uptake of the fund.
For more information contact:
Tel: (011) 269 3282
Cell: 082 880 6074
Tel: (011) 651 7053
Cell: 082 315 3217
Tel: (012) 748 9701
Cell: 072 625 5553