Memorandum of understanding to boost economic recovery
A MOU signed between DUT and Ithala Development Finance Corporation aims to help the KwaZulu-Natal economy.
ITHALA Development Finance Corporation (IDFC) and Durban University of Technology (DUT) have signed a MOU that will assist in seeing the economy of KwaZulu-Natal soar after collapsing due to the Covid 19 pandemic.
Signed by group chief executive, Pearl Bengu and the DUT Vice-Chancellor and principal, Prof Thandwa Mthembu, this MOU seeks to mark a significant co-operation agreement aimed at bolstering the KwaZulu-Natal economic recovery strategy through innovative local economic development interventions.
DUT, one of the top five universities in South Africa and Ithala, a 60-year old development finance institution, recognise that in order to pull the economy out of its downward spiral, there must be joint efforts to drive change.
“Ithala takes matters of boosting our local economy and contributing to the skills development of small business very seriously. It is because of these reasons that the two entities sat down and decided to map out strategies that will see the business sector rise again,” said Bengu.
Over 70 per cent of small businesses collapse during the first three years in business due to a lack of skills, finances and markets.
At the heart of the Ithala/DUT co-operation agreement, are tailor-made initiatives aimed at providing Ithala current and potential clients with much-needed business support and innovation and incubation services, production of knowledge-based socio-economic solutions through DUT’s academic programmes, exchange and skilling programmes to ensure the institutions’ employees are agile in changing environments.
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“Covid-19 has had a significant negative impact on the local economy and no sector has been left unscathed. Economic recovery post the lockdown requires collaboration from public and private sectors to ensure that local business is able to resume operations as effectively as possible. This must be done without delay to ensure jobs which existed before Covid-19 are protected and new job opportunities created,” she said.
Reiterating Bengu’s words, Prof Mthembu highlighted the importance of these two dynamite entities working together.
“DUT is well known for shaping leaders. It is then important for DUT and Ithala to work together in rebuilding the economy of the province that we have seen collapse over the past few years due to various factors.”
DUT contributes to accelerating socio-economic prosperity in South Africa, through leading innovation and equipping people with innovation and entrepreneurial skills, in line with the Entrepreneurship Development in High Education Programme, as well as the DUT new strategic plan, which is ENVISION 2030.
SMMEs are the future
SMMEs are engines of the economy and can play a pivotal role in the job creation agenda which is a priority programme in the KZN economic recovery plan. However, there is a need to bolster their entrepreneurial capacity, embed a culture of innovation and promote localisation throughout their operations.
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The province is working on driving employment creation across agricultural industries, manufacturing, tourism, informal economy, SMMEs and cooperatives, digital economy, oceans economy, green economy, transport and logistics sectors. The partnership between DUT and Ithala will provide much needed skilling and re-skilling interventions to ensure SMMEs and cooperatives are equipped to survive the impact of Covid-19.
Job creation
In the 2019/20 financial year, Ithala supported the creation of 3284 new jobs.
As part of supporting entrepreneurship, DUT is driving the packaging of viable projects in the fields of agro-processing, pharmaceuticals, health and nutrition, information technology, water purification, waste management, renewable energy and maritime.
Priority will be given to youth and women-owned businesses and those owned by people living with disabilities in order to drive economic activity and stick to the overall mandate of bridging the gap through different spheres of the economy.
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