Economic Development Minister Ebrahim Patel today congratulated public agencies for joining hands to drive youth entrepreneurship and employment. The youth entrepreneurship programmes of the Industrial Development Corporation (IDC) and the Small Enterprise Finance Agency (sefa) have already approved loans to 44 youth owned enterprises since the signing of the Youth Employment Accord earlier this year.
Minister Patel’s comments followed the launch of a programme to implement joint initiatives of the IDC, sefa and the National Youth Development Agency (NYDA) in Pietermaritzburg, KwaZulu-Natal today, 21 October 2013.
Minister Patel welcomed the partnership which includes a grant of R10 million by the IDC to NYDA to help finance a youth targeted Voucher Programme that seeks to introduce more young people to the business world. He noted progress made since May this year, after the signing of the Youth Employment Accord and the IDC and sefa announced youth focused programmes. These programmes have to date supported 44 youth owned businesses with concessional lending and financial support to the value of R37.4 million.
The IDC, sefa and NYDA have entered into a partnership to increase the number and quality of youth applications for business funding and to improve approvals through ensuring user-friendly systems while maintaining appropriate controls in granting loans for youth-owned businesses.
Minister Patel said the sharing of operational data between the three agencies will help avoid duplication of processes to consider applications, increase the footprint of youth interventions and improve the impact of the youth entrepreneurship funding in South Africa. He said joint efforts to strengthen pre- and post-funding Business Support Services will help reduce the small business failure rate.
“It is critical that business, labour and other social partners place employment and empowerment of young people at the centre of efforts to build a sustainable future for all South Africans”, said Minister Patel. He said young people must be brought into the economic mainstream and young black industrialists must be nurtured and supported.
Enquiries:
Manelisi Wolela
Cell: 071 313 4192
Email: mwolela@economic.gov.za
