GCWALISILE KHANYILE
DURBAN - ITHALA Bank has initiated a R160 million funding programme aimed at reviving the local economy amid the devastating effects of Covid-19.
Ithala chief executive Pearl Bhengu said they were embarking on a province-wide roadshow to promote their Masakhe-Let’s Build Entrepreneurship Programme.
“Covid-19 has posed many challenges to business and society at large, thus necessitating strong socio-economic interventions from the private and public sector to reignite the economy,” Bhengu said.
She said the programme comprised the Masakhe Women Entrepreneurship Fund of R50 million, Youth Entrepreneurship Fund of R50m, Procurement Fund of R50m and Rural and Township Economy fund of R10m.
“The Procurement Fund is targeted at contractors who need working capital to implement projects awarded to them in accordance with their contractual agreement,” Bhengu said.
She added that the challenges had also brought new opportunities which redefined ways of conducting business.
“We first started with giving SMEs payment holidays. Others are picking up, but some are really struggling. Right now we are at 70% of our instalments collection. Our clients who were based in rural areas were doing very well, because competition was not too high”.
The economic recovery project consisted of extensive consultations, upskilling through a partnership with the Durban University of Technology, mentorship and business support.
Masakhe, she said, was focused on supporting local entrepreneurs to drive development and job-creation.
A panel of technical experts across all business fields was being put together to ensure good outcomes.
Successful applicants would have to go through a mandatory six-month business development programme to ensure sustainability and growth.
“While this (revitalising) is key to fighting poverty and inequality, it will result in building more thriving enterprises and improving livelihoods,” said Bhengu.
She urged clients who had difficulty in paying their loans to come forward so that they could be assisted.
She said Ithala on Monday engaged with Northern Zululand Stakeholders in Ulundi, where the main goal of the sessions was to create a platform for engagement and share Ithala’s role in the local economy. “The sessions will be used to reflect on the current economic challenges, highlight opportunities available for business partnerships and position Ithala as the ideal partner in enhancing the local economy.”
She added that they were also offering business management training to clients, and that a group of 13 participants had successfully completed the programme and were due to graduate. A second intake was being finalised.
“Ithala is also pursuing the accreditation of Ithala CSI Trust Fund as an accredited training provider by AgriSeta, Bank Seta and Services Seta in order to bring much-needed skills interventions to the local economy.”
Meanwhile, uMlalazi Bus Service in Eshowe donated a borehole to supply potable water to the Mlalazi community.
UMlalazi Bus Service is a co-operative bus company formed by a group of taxi owners, a business which was described as “thriving, and supporting their community”.
Bhengu said Ithala provided funding of R24m to the entity to buy their first fleet of buses. They settled the loan and were refinanced for a further R10m.
Daily News