Acting MEC for Economic Development and Tourism, Ina Cronjé, who is also MEC for Finance has thrown down the gauntlet to emerging businesses to identify the business opportunities presented by this province and make a contribution in the economic development of KwaZulu-Natal.
She said this during the launch of an historic small, medium and micro enterprises (SMME) loan scheme, Imbewu Loan Fund, by Ithala and National Youth Development Agency (NYDA) to address problems relating to lack of access to finance by most businesses in KwaZulu-Natal at Hilton Hotel, today.
The fund, whose total amount set aside is R15 million, will provide loans of between R50 000 and R5 million to the youth aged between 18 to 35 years of age.
CEO of NYDA, Steven Ngobeni said the signing of the Memorandum of Understanding (MOU) sets the tone for other provinces in the country and this should spread to all of them as well.
“Young people are faced with poverty and all other economically-related problems. They are sick and tired of being unemployable and we need programmes in this country that will ensure that they get out of poverty and unemployment. These challenges can be defeated if we as government agencies work together and that is why Ithala and NYDA have come together to lead the way for other agencies in this country,” he said.
Siphiwe Madondo, Group Chief Executive Officer of Ithala, said today marks an important partnership between the two institutions that share a common objective of developing the youth.
“We have been very hands on in the business of youth business development, close to R70 million rand of funding was used to fund youth businesses in the past year alone by Ithala. We want to help young people to start own businesses so as to contribution to the job creation in the country. Imbewu Loan Fund is therefore a confirmation that we want the youth the youth to live and think entrepreneurship.
This loan fund is going to target small businesses. This finance can be accessed through concrete and clear business plans by young people through Ithala or NYDA,” he said.
MEC Cronjé said this is an excellent initiative and that there is a need for more of these programmes to be spread throughout the country to ensure that young people are more economically active and that they contribute in job creation.
“The fact that some young people are seen idling because of their unemployability is a sign that we need to ensure we skill them so they can make something of themselves. As Provincial Treasury, we have started the Financial Literacy Association and this is our sign that we want both young and old to know the mechanics of financial management. This initiative seeks to develop entrepreneurs and I am very happy that the NYDA is taking the bull by its horns on matters of youth development,” she said.
Cronjé said we must change this country from being a country of job seekers to being a country of job creators.
“See these opportunities when they come up, be prepared to start small and work your way up.SMMEs are the backbone of economic development. Don’t be greedy, work your way up legally and professionally to ensure that your good concept flies. Seek help where necessary and ensure that you learn about financial management,” said Cronjé.
For more information, call:
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