R3.6bn committed for Jobs Fund projects

9 October 2012

South Africa’s R9-billion Jobs Fund approved more than R1.87-billion in grant funding in its first year, complemented by a further R1.78-million from the private sector, to support 41 job creation projects around the country, says Finance Minister Pravin Gordhan.

In all, over R3.6-billion was committed to Jobs Funds projects between April last year and February this year, Gordhan revealed in a written response to a parliamentary question last week.

Gordhan said the share between the state and the private sector translated to an average of 95c by the private sector for every R1 committed by the National Treasury.

The fund, which is managed by the Development Bank of Southern Africa (DBSA), will run for another two years, until 2014. So far it has held two funding rounds, with the last one running from April to May this year.

Gordhan said that, by the end of September 2012, R320-million would have been transferred by the National Treasury to the DBSA.

The R1.8-billion so far approved by the DBSA would be disbursed in tranches over the agreed terms of the projects, he added.

In all, R870-million or 46.5% of all Jobs Fund approvals so far have gone to organisations running 16 enterprise development projects, with these organisations also adding a further R816.9-million in funding.

The remainder of funds were allocated to 20 projects to support work seekers (R548-million, with a further R760.6-million committed by the organisations running the projects); four to help build institutional capacity (R404.4-million, with a further R128.4-million from the organisations) and one project of R50-million in infrastructure investment (with a further R75-million from the funded organisation).

Those organisations which obtained funding in the first round of grants had projected they would create 10 344 new permanent jobs and 39 873 short-term jobs over the next three years, with a further 36 729 people expected to have successfully completed training.

Source: SANews.gov.za