The eThekwini Municipality in South Africa is embarking on a three-year partnership with Ithala Development Finance Corporation (IDFC) to support small, micro, and medium enterprises (SMMEs). However, the initiative faces scrutiny due to an ongoing legal battle between IDFC and the Prudential Authority (PA).
The eThekwini Municipality in South Africa is planning a three-year partnership with Ithala Development Finance Corporation (IDFC) to support small, micro, and medium enterprises (SMMEs). This collaboration aims to provide financial and non-financial support services to entrepreneurs, fostering their competitiveness and participation in the mainstream economy.
The municipality and IDFC have a history of working together, signing a memorandum of agreement (MOA) in December to initiate various projects. According to the municipal report, both parties will contribute R20 million annually to the SMME development program, managed by IDFC. The program seeks to integrate women and youth-owned businesses in rural and township areas, providing them with resources and opportunities. However, the partnership faces scrutiny due to an ongoing legal battle between IDFC and the Prudential Authority (PA). The Pietermaritzburg High Court will hear a case beginning Friday, addressing claims of alleged insolvency and non-compliance against IDFC. Democratic Alliance Councillor Sanelisiwe Chebure expressed support for the initiative's goals but raised concerns about its implementation and oversight. She emphasized the need for accountability and transparency, urging the municipality to ensure that every rand allocated to entrepreneurs delivers tangible results. Chebure also highlighted the need to address barriers to access and funding, particularly for young and innovative entrepreneurs. She called for simplified application processes, reduced bureaucracy, and increased transparency to create a more inclusive system. ANC councillor Philly Ndlovu, deputy chairperson of the Economic Development and Planning committee, voiced support for the MOA, emphasizing its focus on supporting SMMEs from all backgrounds, including those with disabilities. Ndlovu stressed the importance of collaborative oversight and regular visits to beneficiaries to monitor the program's impact
SMME Development Ithala Development Finance Corporation Ethekwini Municipality Legal Controversy Prudential Authority Entrepreneurship South Africa
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