City hands over R21m economic relief assistance to 700 small businesses
Mayoral spokesperson, Mluleki Mntungwa said this group of 100 is the first to receive funding of the 700 successful applicants.
HOPE was restored when 100 small businesses each received a R30 000 cheque yesterday, September 13, at the Durban City Hall’s Council Chambers.
According to the City the assistance offered to these businesses forms part of the municipality’s Covid-19 Economic Recovery Fund.
Mayoral spokesperson, Mluleki Mntungwa said this group of 100 is the first to receive funding of the 700 successful applicants.
“The fund was established to bring relief to businesses affected by the Covid-19 pandemic. Processes to assist the other successful applicants is underway and will be finalised soon. The beneficiaries are across all sectors including spaza shops, salons, retail and flea market, catering, construction, cooperatives, and agribusiness,” said Mntungwa.
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Gcinokuhle Dube (30), of Loxion Tours located in Umkhumbane couldn’t contain his excitement at the cheque handover ceremony.
“Finally, we can see light at the end of the tunnel. There was a time where I thought it was over for my business as tourism was hard hit by the pandemic. However, this relief fund has provided me with an opportunity to market and reposition my brand without having to take a loan,” he said.
Handing over the cheques to the beneficiaries, eThekwini mayor Mxolisi Kaunda said: “This is a great initiative by the municipality to bring much-needed relief to small businesses that were adversely affected by the pandemic.”
Mayor Kaunda said the small business sector made a significant contribution to the gross domestic product.
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“This intervention was important as the nationwide lockdown has had a devastating impact on businesses in the City. This resulted in the loss of approximately R34 billion across all sectors of the economy. An estimated 6 000 companies were forced to close down, resulting in over 300 000 job losses.”
He said eThekwini was the first metro in the country to develop an economic recovery plan to mitigate against the impact of the pandemic.
In addition, mayor Kaunda said R21 million was set aside for the relief package, adding that there are other relief programmes available at the City’s one-stop centre located at Durban Exhibition Centre.
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