NYDA partners with GEP to launch R60m youth enterprise fund in Gauteng
Young entrepreneurs can access up to R1 million through a diversified pool fund that offers a blend of loans and grants.
Given the scarcity of resources and constrained government purse, collaboration becomes a winning solution to resolving the challenges faced by young people.
As a result, the National Youth Development Agency (NYDA) and the Gauteng Enterprise Propeller (GEP) ‘Moswa Kgwebong’ have launched an R60m Youth Enterprise Fund to support youth-owned businesses in Gauteng.
The launch, which took place on September 6 at the NYDA offices in Midrand, is part of the Integrated Youth Development Strategy that seeks to promote economic transformation, entrepreneurship, and job creation.
Small, Medium and Micro Enterprises (SMMEs) are the backbone of the South African economy and have a significant impact on employment and the country’s Gross Domestic Product (GDP).
The NYDA and GEP aim to intensify support provided to youth-owned businesses in Gauteng province.
The GEP’s general manager for corporate support and administration, Nosipho Khonkwane, said the fund was conceptualised in 2021 and implemented on a small scale in 2022.
“The two entities started engaging towards the third quarter of last year, looking for means to scale up the youth fund. This year, they have finalised their agreement,” Khonkwane explained.
The youth fund will offer a diversified pool fund that will allow young people to have access to blended financing of up to R1m.
“Both parties agreed to contribute equally to the fund, resulting in a R60m youth fund. The objective of the fund is to ensure economic participation and job creation, increase the level of access to finance for youth-owned businesses in Gauteng province, and offer a maximum loan of R1m,” she added.
“The fund is designed to be a blended finance instrument and will be 50% grant and 50% loan to ensure affordability.”
The NYDA will contribute to the grant portion of the fund, while the GEP will contribute to the loan portion.
The two institutions have committed to contributing R30m over a three-year period to the partnership.
To be eligible for the fund, businesses should be owned by South African citizens, at least 51% owned by a disadvantaged person, youth-owned 18-35, and based in Gauteng province.
NYDA CEO Waseem Carrim highlighted that Gauteng is an economic hub of the country and attracts many young people seeking different opportunities, “so efforts to ensure the inclusive participation of youth in the economy need greater attention and more resources.
“As we know young people need access to many things such as skills, development, and access to the market. But access to funding we know is a huge gap in SA so this is a significant step in the right direction.”
Business owners can visit the GEP website to apply online and complete an application form.
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