Launched on Monday, 18 February, the Isivande Women's Fund (IWF) is targeted at black women at the bottom of the economic ladder, micro enterprises and women entrepreneurs who are currently running their own enterprises.
The fund will specialise in debt financing by offering loans from R30,000 to R2 million per transaction to Small Medium Enterprises.
These companies are required to be 60% women-owned and have at least a two-year track record of business activity and a sustainable business plan.
Speaking at the launch on Monday, DTI Minister Mandisi Mpahlwa said despite the fact that women-owned enterprises are contributing an increasing share to national revenue, women remain under-represented in formal sector enterprise and over-represented in micro enterprises and the informal sector.
“Approximately 70% of informal businesses in South Africa are owned or controlled by women and while women have better credit repayment records than men, they find it harder to raise finance than men,” said Minister Mpahlwa.
He further said that South African women will remain a crucial target group receiving close attention in an effort to broaden participation in our economy.
The greater the participation of women in our economy, the more realistic our target of dramatically reducing poverty and halving unemployment within the next decade, said Mpahlwa.
He also noted that the 2007 statistics revealed that women were taking the lead as entrepreneurs, adding that the fund represents a further approach in dealing with this challenge.
“It is a most positive development that we find the private sector beginning to address this challenge in more creative ways than before.
Deputy President Phumzile Mlambo-Ngcuka said the fund was another step towards ensuring women are empowered and poverty is addressed.
Mlambo-Ngcuka said the fund will also empower women to make decisions in taking care of their children.
She noted that if there were more women controlling the money, the government would not have included poverty in the Millennium Development Goals.
“Women earn one tenth of world's worth and less that 10% of them access credit,” said Deputy President.
Old Mutual Managing Director, Bob Head said the organisation offered financial support to women as they make excellent entrepreneurs and often understand people's needs better than men.
“For South African women, it's a wonderful opportunity, they must use, the country needs them as they shape our vision and passion,” said Head.
He added that through the fund, Old Mutual aims to create thousands of jobs for the community.
Article published courtesy of BuaNews
