The Department of Economic Development and Environmental Affairs has made a provision of R50 million to support and develop cooperatives within the province.
The main focus of the fund will be to promote the viability of the cooperative enterprises in the province. It will serve as a revolving fund for the support of primary cooperatives involved in manufacturing and services sectors.
“In my 2009/10 policy speech we identified enterprise development and support and rural development as one of the seven dimensions that our department will be focusing on. I am therefore excited that we have managed to deliver on this commitment” said the MEC for the Department of Economic Development and Environmental Affairs, MEC Mcebisi Jonas.
The fund is called the Imvaba Eastern Cape Provincial Cooperative Development Fund (Imvaba ECPCDF) and it is informed by the Eastern Cape provincial cooperatives development strategy, cooperatives policy (2004), National Cooperatives Act number 14 of 2005 and the Cooperatives Bank Act number 50 of 2007.
The targeted sectors include agricultural business (agro-processing), tourism, information communication technology (ICT), chemicals, textile and clothing, timber and forestry, metals, business processing outsourcing, and arts and crafts. The Eastern Cape Provincial Cooperative Development Fund is designed as part loan finance and part developmental (seed capital) 70 to 30 percent split. The loan fund is geared towards the support of viable and sustainable cooperative enterprises on three to five year terms.
The Imvaba Eastern Cape Provincial Cooperative Development will be managed as a distinct product through Eastern Cape Development Corporation (ECDC) while creating necessary capacity for the establishment of a cooperative bank in line with the provisions of the cooperatives bank Act no 50 of 2007. According to Ms Phumla Ndaba, Department of Economic Development and Environmental Affairs General Manager, the ECDC will service the market that is between R20 000 and R1 million at zero interest rate.
“The focus on primary cooperatives is informed by the desire to have vibrant cooperative enterprises that are directly involved in economic activities that have a potential of generating employment opportunities for their members and contribute to sustainable community livelihoods” said MEC Jonas.
The Imvaba Eastern Cape Provincial Cooperative Development is also intended to assist cooperatives with the development of requisite skills and access to markets. The provincial cooperative strategy will be implemented over the medium term expenditure cycle with a phased implementation plan for a five year period. The implementation plan is modelled on a wider stakeholder partnership with key relevant institutions to leverage on existing capacity and synergies for attainment of mutual goals.
“Existing problems and challenges cannot be solved individually, a group of motivated persons who share common purpose need to come together and coordinate their efforts to deal with their challenges. That is the approach we are taking and we are convinced that given the nature of our challenges in the province, this approach is appropriate,” concluded the MEC.
For more information on application forms, guidelines and funding criteria, cooperatives are invited to attend the district stakeholder information sessions that will be held as indicated below:
* Cacadu district
Date: 5 February 2010
Venue: Pine Lodge, Port Elizabeth
Time: 09h00 to 12h00
Contact person: Rishika Mitah
Tel: 041 508 5800
* Alfred Nzo
Date: 8 February 2010
Venue: Roman Catholic Church, 107 Hope Street, Kokstad
Time: 09h00-12h00
Contact: Mandy Bambeni
Tel: 039 7274 982
* OR Tambo
Date: 9 February 2010
Venue: Savoy Hotel (Mthatha), Nelson Mandela Drive
Time: 09h00 to 12h00
Contact: Nosinodi Mdala
Tel: 047 5311 191
* Chris Hani
Date: 10 February 2010
Venue: Queens Casino Hotel, Queenstown
Time: 09h00 to 12h00
Contact: Konwaba Gcwabe
Tel: 045 8084 000
* Ukhahlamba
Date: 11 February 2010
Venue: Riverside Lodge, Aliwal North
Time: 09h00 to 12h00
Contact: Xolisa Manxiwa
Tel: 051 6332 901
* Amathole
Date: 12 February 2010
Venue: John Tremble hall, Frere hospital (EL)
Time: 09h00 to 12h00
Contact: Nyameka Boqwana
Tel: 043 707 400
The MEC for the Department of Economic Development and Environmental Affairs, Honourable Mcebisi Jonas will, on the 16 February 2010, officially launch this fund at ward five, Nonkonyana JSS Flagstaff, Ngquza Hill municipality, OR Tambo district municipality.
For enquiries contact:
Sixolile Makaula
Tel: 040 609 3299
Cell: 072 751 5001
Fax 040 609 3211
E-mail: Sixolile.Makaula@deaet.ecape.gov.za
Issued by: Department of Economic Development and Environmental Affairs, Eastern Cape Provincial Government
3 February 2010
Source: Eastern Cape Provincial Government (http://www.ecprov.gov.za/)
