The KwaZulu-Natal government today begun its bold youth entrepreneurship revolution by awarding grants totalling R71.4 million to 55 youth owned business enterprises.
Early this year, the provincial government launched the Youth Business Development Fund which is geared towards finding a long-term solution for youth entrepreneurs who do not qualify for bank loans due to a lack of credit history or collateral.
Young people were invited to submit their proposals which have in the past few months been subjected to thorough scrutiny and evaluation to find worthy and deserving recipients.
Speaking during the awarding of grants in Pietermaritzburg today, KwaZulu-Natal Premier, Mr Sihle Zikalala said small business development was a cornerstone of sustainable development, inclusive prosperity, and countering high unemployment.
“Today represents a day of great joy and a sense of fulfilment for our nation and the youth of KwaZulu-Natal,” said the Premier.
He said 2246 applications were received and processed. Of these, 448 were shortlisted for due diligence, and 55 were ultimately awarded grants totalling R71. 4 million. Premier Zikalala explained that the Department of Economic Development, Tourism and Environmental Affairs contributed towards the capitalization of the fund.
“We want to encourage all applicants who were not successful this time around not to give up or to even think their efforts were meaningless. We encourage our young people to apply during the second phase of the funding which will be announced soon."
The Premier said government was highly encouraged to see the youth of KZN making strides to own their businesses, adding that the provincial government would continue to mobilise the private sector to contribute to the fund.
“We wish to commend ABSA for partnering with the provincial government to make the programme a success. Our engagements with this financial institution culminated in them pledging to allocate a R70 million loan dedicated to further supporting youth-owned enterprises that may require more funds than what government has allocated from the seed funding," said Premier Zikalala.
The Premier's announcement of the beneficiaries was met with surreal jubilation and wild excitement.
One of the beneficiaries, Mr Thabiso Nxumalo who owns Kenako Roofing, could barely contain his joy as he recounted the struggles that had brought him this far.
“We really commend the provincial government for assisting us with funding. It will make a huge difference. We have been struggling to find funding for a very long time. What the government has done shows that we have a caring government that strongly believes in empowering young people,” said Mr Nxumalo.
His business currently employs three people and is looking to expand in order to meet the market demand for its service.
Mr Nxumalo’s business manufactures and supplies steel gauge roof trusses which are mainly used by the low cost housing sector.
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