By Tasneem Bulbulia
The Unemployment Insurance Fund (UIF) and the National Empowerment Fund (NEF) on September 25 launched a R1-billion partnership, which aims to stimulate enterprise growth and create upwards of 30 000 jobs.
With R500-million committed from each entity, this combined considerable capital finance endeavours to advance employment, drive transformation and empower small, medium-sized and microenterprises.
This five-year programme also aims to expand access to finance, support business sustainability, advance broad-based black economic empowerment objectives and strengthen development finance collaboration.
Further to its funding contribution, the NEF will be the implementation partner, overseeing progress and ensuring accountability.
An implementation plan is already in motion.
Speaking at the launch in Fourways, under the theme ‘Investing in Enterprises. Advancing Employment. Driving Transformation’, UIF acting commissioner Thulani Tshefuta explained that the partnership directly responded to the county’s National Development Plan as well as the Medium Term Development Plan, with the former targeting 11-million new jobs by 2030 comprising 9-9-million from small businesses, while the latter entailed a strategic priority to bolster inclusive economic growth.
“This instrument therefore aims to respond to the plight of small businesses,” he emphasised, pointing out that these had identified access to funding as the biggest challenge faced.
Tshefuta highlighted that the partnership was more than just a financial commitment, as it was set to also provide enterprise and skills development, stimulate employment and facilitate technical support.
He stressed the importance of strategic partnership to achieve this, with the entities to combine plans, efforts and resources, and leverage economies of scale to maximise the impact of the investment undertaken.
Tshefuta informed that a broad spectrum of South African enterprises would be targeted, with the goal being to have at least 70% of programmes benefitting women-, youth- and people with disabilities-owned enterprises.
He also highlighted a dedicated focus on township, rural and underserved enterprises.
Tshefuta indicated that the partnership would prioritise sectors that hosted the most potential to contribute to economic growth, created more employment and were labour intensive, such a tourism, agriculture, beauty and digital.
Trade, Industry and Competition Deputy Minister Zuko Godlimpi underscored the importance of aligning mandates and programmes, with coordination required to address the scale of unemployment ailing the country.
He pointed out that the partnership would leverage the expertise of programmes already in place within both entities.
Employment and Labour Minister Nomakhosazana Meth reiterated that business required more than just financial support, with customers, capable workers, reliable suppliers and routes to larger markets also important, and the partnership aiming to be the start of more partnerships that facilitated this across government, business, development finance institutions and labour.
“The real test begins now: when an enterprise secures support, wins customers, expands production, and employs more South Africans. We must follow that journey and measure the result,” the Minister said.
Meth stressed that the economy needs faster growth, while established firms need to invest and expand, and more MSMEs need to become sustainable employers.