Durban — KwaZulu-Natal Premier Thami Ntuli has offered a much-needed lifeline of R100 million to struggling youth-owned businesses in a bid to fight the grinding poverty among young people.
“We have grown this fund from R60m in the 2018/19 financial year to R100m currently. In the last financial year, we disbursed R100m, and this year, we will be opening the window soon for a further R100m funding,” said Ntuli.
Ntuli, who took over as premier last month, made this promise during the opening of the Youth In Business Summit at the Durban Exhibition Centre on Thursday.
“I stand before you to address a pressing issue that holds the key to our economic future and support of youth-owned businesses in KwaZulu-Natal. This province, rich in culture and diversity, is brimming with entrepreneurial potential among its youth, a potential that, if nurtured and supported adequately, can drive unprecedented economic growth and social development,” said Ntuli.
The event, held under the theme, “Young People Taking Charge in Leading Economic Development”, was attended by hundreds of young people from KZN.
Ntuli conceded that it was a recipe for disaster to have a youth unemployment rate at 45% nationally, with estimates suggesting that more than 4.9 million youth were unemployed.
“These statistics paint a bleak picture of the state of our youth. What we have come to reaffirm over the next two days is that young people have the power to change their lives and achieve their dreams,” said Ntuli.
“We want to accelerate the implementation of the Operation Vula Fund at the Department of Economic Development Tourism and Environmental Affairs (Edtea). Through this fund, the government procures equipment for applicants valued from R50 000 to R2m.” Turning his focus to the youth who owned spaza shops, Ntuli said the government launched the R22m Zimele Traders’ Fund.
“This will uplift community and spaza shops by offering working capital loan funding, infrastructure grants for shop refurbishment and payment automation facilities,” he said.
“At the outset, let me make this undertaking: the executive council and government I lead have identified youth unemployment, youth development and financial backing for youth-owned enterprises as some of the key priorities for the seventh administration.”
On the sidelines of the event, Ntuli said his government would strengthen its efforts to fight unemployment, especially among young people.
“When I delivered my first speech as premier, I said my big focus would be empowering young people who own businesses. That is what we are doing now. So, we encourage young people to open businesses and come to us as a government for funding.”
Ntuli was accompanied by all the members of his provincial Cabinet, including the MEC for Edtea, Musa Zondi, MEC for Health Nomagugu Simelane, Martin Meyer, MEC for Public Works and Mntomuhle Khawula, MEC for Sport, Arts and Culture.
Also present were mayors of different municipalities in KZN, heads of departments and chief executives of prominent companies.
Ntuli said: “The young minds of KwaZulu-Natal are eager to contribute, innovate, and lead in various sectors from technology and agriculture to tourism and creative industries.”
He added: “However, they face significant challenges that hinder their progress: lack of access to finance, limited business knowledge and skills, bureaucratic hurdles, and insufficient support structures.”
To unlock the full potential of youth entrepreneurship in KZN, Ntuli said multi-pronged efforts were needed.
“Firstly, access to finance remains a critical barrier. Government initiatives such as simplified loan processes, preferential interest rates, and grants tailored to youth-owned enterprises can provide the necessary financial foundation.”
Among the prominent companies the government has joined forces with to support youth business was Dunlop Tyres.
Young people interested in the manufacturing and selling of tyres, wheel balancing, alignment, and tyre-changing businesses would benefit from the programme, he said.
A budding businessman, Thabo Ngcobo, 31, from Pinetown, said: “I think it is very important to have such programmes to empower the youth in business so that, in turn, we tackle the rising unemployment rate among young people.”
Ngcobo owns a grass-cutting business in his neighbourhood.
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