Eastern Cape MEC of Economic Development sets aside R40 million to empower small businesses
The department of Economic Development together with other departments in Eastern Cape has set aside about R40 million in a bid to empower small businesses affected by Covid-19. MEC of the department Mlungisi Mvoko was briefing the media on Tuesday. According to the MEC, textile and agriculture will be the main sectors to get most of the funding because they create most job opportunities,
“It is important that we give support to these sectors like the motor industry because as we give support to these sectors it is important that they also show growth in terms of creating job opportunities. Hence we give support to manufactures,” said Mvoko.
MEC said they do have funding instruments, however, they have not been utilised to the full maximum. “Covid has shown us that we can use these funding instruments better. We were put under pressure by the pandemic such that we had to reprioritise where the funds go…
“We have established some forums with businesses to see where they need us the most, even the forty million rands might not be enough but we had to start somewhere,” said Mvoko.
Eastern Cape is facing youth unemployment which is above 50%. ECDC has been given the mandate to target rural areas in making sure that businesses in those areas get the necessary funding and that local municipalities will facilitate and ensure that the funds go to deserving companies.
