Fund
23 August 2007
Deputy President Phumzile Mlambo-Ngcuka welcomed the announcement made
yesterday by Old Mutual's Masisizane Fund that it will be donating R20 million
to Jobs for Growth (J4G) - a national programme that is part of government's
Accelerated and Shared Growth Initiative for South Africa (AsgiSA). The
donation will be put toward the establishment of the Jobs for Growth Women's
Fund.
The announcement marks the establishment of the first of several
partnerships that Old Mutual intends to create with like-minded organisations
that share its vision and passion for poverty alleviation through job creation
and the economic empowerment of women. Old Mutual has committed R260 million to
this cause, as the main programme to be funded from the R400 million it set
aside for the Masisizane Fund, a Section 21 company created following the
closure of the Old Mutual Unclaimed Shares Trust.
Masisizane, or 'let's help each other,' is a programme aimed at supporting
AsgiSA, and generally supporting national economic transformation.
The J4G programme aims to create about a million jobs over the next three to
five years, through projects aimed mostly at women-owned and controlled small
businesses and co-operatives in rural areas and semi-urban areas around cities.
One of the criteria of the J4G Women's Fund is that 51% of employees should be
women and 75% black.
Specifically, the J4G Women's Fund will support people who want to start
small businesses, including co-operatives in these areas. The Fund also seeks
to develop people's skills to successfully run their businesses and assists
them in the finding of markets and procurement agreements.
"Growth at formal economy level will not redistribute itself, we need to be
creative and people centred. The development of poor people is labour intensive
and unorthodox," said Deputy President Phumzile Mlambo-Ngcuka.
"We have to address the inequalities in our society by going to where people
are at a grassroots level in order to liberate our women � one woman at a time
- while gathering momentum and building hundreds and thousands of seeds and
flowers that must blossom. That is the essence. Every municipality and ward
must be a site of economic struggle," continued the Deputy President
The implementation of J4G's programme rests with the Independent Development
Trust (IDT), which was established in 1990 by the government.
"We are extremely excited to be partnering with Jobs for Growth and the IDT
for our first Masisizane partnership," says Rojie Kisten, General Manager of
Old Mutual Corporate Affairs. "The J4G programme is a great fit for Masisizane
as both entities are looking to address the same needs."
"The role of J4G is to identify existing small and medium enterprises that
require funding to take them to the next level and create more jobs, as well as
some start-up business opportunities. As part of our agreement, the J4G
programme will identify potential businesses, screen them and provide
Masisizane with a shortlist."
According to Kisten, interest-bearing loans will be made to the selected
businesses at an extremely favourable rate. The loans are limited to a minimum
of R25 000 and to a maximum of R1 million, with some discretion so that viable
business ideas can be given due consideration.
Issued by: The Presidency
23 August 2007
