DURBAN - OPERATION Vula Fund is expected to create about 10 816 jobs, Premier Sihle Zikalala said at Tuesday’s launch of the Operation Vula Fund Rollout at the Royal Showgrounds in Pietermaritzburg.
Of the total, 9 083 jobs will be created in Tier 1, with 175 created in Tier 2 and 1 558 jobs created in Tier 3, said Zikalala.
The fund was created with the primary objective of restructuring the architecture of the economy, he said.
“The fund is an overarching programme to fundamentally transform the patterns of economic ownership by bringing previously marginalised groups into the mainstream economy. It is a fund to realise the policy imperatives of the ANC-led government which is Radical Economic Transformation.”
Economic Development, Tourism and Environmental Affairs MEC Ravi Pillay said the fund was a pillar of economic reconstruction, transformation and a way of promoting and building a localised productive economy.
“We do not want to import; we want to produce things ourselves as a country,” said Pillay.
The roll-out’s expenditure has equipment worth more than R300 million which will be awarded to more than 1 000 beneficiaries.
There were 4 229 applications to the Operation Vula Fund. During selection, strict criteria were in place as part of due diligence to ensure that the beneficiaries were the most deserving.
Applications were checked if the enterprises would be profitable, sustainable and would create job opportunities. Furthermore, the enterprises would have had to, in one way or the other, be sure to empower those from disadvantaged backgrounds namely black people, women, the youth and the disabled, Zikalala explained.
“A total of 1 021 applications were approved. Of these applications, 923 were in Tier 1 which disbursed equipment and instruments not exceeding R200 000. Another 11 applications in Tier 2 were disbursed between R200 000 and R500 000. Lastly, 87 applicants in Tier three disbursed instruments whose value ranged from R500 000 to R2 million.”
According to MEC Pillay, an analysis would be conducted of the awarded enterprises to check if the machinery given to them was used purposefully and to check the progress of their enterprises, to see whether or not they had access to the market.
Pillay also encouraged unsuccessful applicants not to lose hope and urged enterprises from the private sector to also be part of the fund.
“We will also conduct an analysis with them and give clarity on why their applications were unsuccessful. Once that is done, we will engage them for a new window and for new opportunities that will arise.”
Six commodities were conceptualised for the fund which were short of black enterprises, namely clothing and textile, furniture, paper and pulp (detergents), fertilisers (seeds and animal feed) and construction.
“I am ecstatic about the help we have received from the government. My business did not have enough equipment and I always had to borrow equipment from other suppliers. I have managed to buy 20 tables, decor and a fries machine for my business. This will enable me to work endlessly, make profit and hire people,” said Ntombifuthi Khumalo, founder of Insikayezwe Trading Enterprise.
Carol Kheswa, the founder of CaRe Accounting and Tax said they were honoured to see the injection for the growth of their business. “We are going to be expanding and creating more job opportunities and training to graduates.”
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