Equity fund for small businesses
Shadi Baloyi
8 July 2004
Mpumalanga entrepreneurs who wish to start and sustain small businesses will soon have access to credit through dedicated micro-loan financing, according to Premier Thabang Makwetla.
Makwetla said government was aware that local entrepreneurs, especially black economic empowerment companies, were unable to provide own equity or collateral to secure project finance.
Speaking at the Equity Fund launch on Tuesday, Makwetla said the Mpumalanga Investment Initiative was often unable to find match local partners to investors in its drive to promote investment and trade development.
"The economy has created hundreds of thousands of new jobs. But the number of job seekers has sharply increased; with many losing their jobs; and many have been negatively affected by casualisation and outsourcing," said Makwetla.
He said in order to develop the province's economic base, there was a need to accelerate broad-based BEE, which must benefit broad
sectors of the community including youth, women and people with disabilities.
"We must also take more and more young people through learnerships so that they can gain skills and work experience in order for them to access jobs," he said.
Makwetla added that government deemed it necessary to set up the fund in order to make it possible for small and medium businesses to access finance.
He said the equity fund remained the best available option to provide "own equity contribution" in loan financing.
"Creating opportunities for income requires the cooperation of all of us to cultivate a good image of our province. We must provide good service to investors, tourists and everybody else," Makwetla said.
"We will go out there and build community infrastructure and provide access to local economic opportunities to many citizens in our province," he said.
He said the province must consolidate the partnership between government, business, labour and community
organisations to find solutions to unemployment and poverty.
"I believe we can all unite in creating a better province where all work towards creating employment opportunities that will ensure incomes and prosperity for our people," he added.
Source: BuaNews
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