Labour Minister Mildred Oliphant today announced that the Unemployment Insurance Fund (UIF) will invest another R2-billion with the Industrial Development Corporation (IDC) for job creation.
The announcement follows UIF’s agreement in 2009 to place a R2 billion bond with the Industrial Development (IDC), national development finance institution that promote economic growth and industrial development, to provide funding to businesses that will create and save jobs.
The IDC has approved R2, 5 billion since 2010, saving 13 878 and creating 12 431 jobs respectively. The total number of jobs both saved and created is 26 309.
Oliphant says the co-operation between the IDC and the UIF demonstrates a serious commitment by Government to deal with unemployment.
The UIF/IDC bond provides funding to both existing and start-up businesses.
IDC chief executive officer Geoffrey Qhena says the funding is targeted at start-ups, expansionary acquisition and expansion of existing businesses.
“It is important that we partner with Government to address unemployment in the country. This is a fundamental and sensible co-operation between government agencies,” says Qhena.
The initial R2-billion UIF/IDC bond, which was offered to businesses at a fixed concessionary rate, will mature in 2015.
UIF Commissioner Boas Seruwe says the good performance of the initial bond prompted the UIF to invest an additional R2-billion with the IDC, in four bonds of R500 million each.
“South Africa needs to create more job opportunities and investing in the IDC is a sure way of ensuring that the economy expands and creates more opportunities for employment. This is part of the UIF’s contribution to government initiatives of getting South Africa to work by saving and creating jobs,” he says.
Seruwe says this means that more revenue is contributed to the organisation and fewer claims are paid out to beneficiaries, a move, he says, that will ensure UIF’s financial stability.
Many sectors have benefited from this fund. The UIF is a public entity of the Department of Labour which acts as a temporary cushion to workers who become unemployed.
Government injects R2 billion in job creation
