The Eastern Cape Development Corporation says there is funding in place to eradicate poverty and inequality in business sectors. Risk Capital Fund and Small Town, Rural and Township Entrepreneurship Programme are the two funding programmes that have been introduced at Mthatha.
The ECDC says it will focus on informal and formal SMMEs in the province. The aim is to create sustainable jobs and make a good economic impact.
Access to funding is one of the issues the youth are facing in the province. Informal business owners say their businesses have collapsed due to a lack of funding. Many say they end up running out of their start-up capital.
“I started my business in 2022, with the money that I have saved since 2020. It collapsed because the money was not enough. If I can get a funding it can really help me start my business again. I also learned that starting a business with small capital cannot sustain the business,” says informal business owner Manelisi Mzuwakhe.
One of the beneficiaries says the funding will help him create sustainable jobs.
“I got my funding from ECDC in 2016. They helped me a lot to get where I want to be. They also funded me for marketing and also branding of the car. Throughout these years they have been assisting me wherever I need help,” says beneficiary Siyabulela Zulu.
The Eastern Cape Development Corporation says the risk capital fund facility provides up to R3 million.
“Risk equity fund is intended at…Eastern Cape ideas that require funding. So the structure of the funding provide subordinated loan funding that assists in improving attractiveness of the application fund for EC SMMEs this facility provides up to R3 million funding,” says ECDC CEO Ayanda Wakaba.
The ECDC says a renewal strategy will be implemented to ensure the funding is accessible to everyone and there’s no mismanagement of funds.
