Disgruntled young entrepreneurs in the Eastern Cape demand answers from Premier Oscar Mabuyane on the R150- million funding scheme meant to support youth-owned small, medium and micro enterprises (SMMEs).
More than 60 entrepreneurs claim Mabuyane, who is also the ANC provincial chairperson, failed them as they perpetually struggle to get funding from the Isiqalo Youth Fund.
They allege the project was a vehicle to enrich the politically connected few in the ANC.
In a challenge to Mabuyane, the founder of Global Leadership Consultants, Luphumlo Joka, this week called for an explanation. Joka wrote a complaint letter to Mabuyane’s office on August 2 last year on behalf of frustrated young entrepreneurs.
“We have been facing an uphill battle with premier Mabuyane and the director of the Isiqalo Youth Fund. We have been sent from pillar to post when demanding answers about the funds. Nobody tells us what happened to the funds earmarked to fund SMMEs in the province.”
In 2019, Mabuyane launched the funding scheme, Isiqalo Youth Fund, to provide young entrepreneurs with access to funds to boost SMMEs in the province, create jobs, and grow the economy. The government invested R150- million in the scheme.
During his state of the province address in February, Mabuyane said an additional R150-million would be injected into the Isiqalo Youth Fund to benefit the youth. At its inception, the provincial economic development department was entrusted with managing the fund, but the fund was later transferred to Mabuyane’s office.
However, three-and-a-half years later, a group of young people owning start-ups have begun to cry foul, accusing Mabuyane of not releasing the funds. The angry group claims it has applied for funding but has not received a cent for any projects.
In last year’s letter to Mabuyane, Joka said there were concerns regarding the fund and its failure to fund promising businesses owned by youngsters in the province, claiming there was a lack of transparency in the disbursement of funds.
“We are writing to your office on behalf of 60 youth-owned SMMEs that have applied for the Isiqalo Youth Fund in the past financial year. While we appreciate this initiative, we are very disappointed by the lack of transparency and efficiency of communication from your office,” the letter read.
Cwengile Sithole, an official in Mabuyane’s office, told Joka that the correspondence had been forwarded to Yanga Tantsi, director of the youth fund.
Tantsi this week declined to comment and referred questions to Khuselwa Rantjie, the provincial communications general manager. Messages and calls to Rantjie were unanswered.
Linomtha Gadlela, the owner of Ezamazocho Namanyobe, said she applied for funding in 2021. “I’m aware that Isiqalo funds foreigners, but when we ask why our funds aren’t forthcoming, we get stories.
According to Wayde Jansen of Kingshine, it has been three years since the organisation applied for R1.2-million loan.
In a separate written response to Yunus Cassim of the DA in the Eastern Cape legislature, Mabuyane said the fund had been allocated R50-million over three years. He also claimed that SMMEs received R28.4-million.
Cassim this week said: “I asked the premier how they did the check and balances and how the beneficiaries were selected to qualify.”
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