Yesterday, Finance Minister Mthuli Ncube shared more details regarding the $500 million National Venture Capital fund announced as part of the 2020 National Budget.
During the budget presentation, not much was given in detail regarding the fund but Mthuli expanded on the little we knew so far:
The venture fund will be availed starting in February next year and we are also inviting private sector, as it is a worth spend for us as government.
SMEs have several challenges, which continue to negatively affect their growth, the major one being limitted patient capital raising options.
Finance Minister Mthuli Ncube
The point the finance minister raised regarding patient capital is pretty important once you take into consideration that SMEs and startups have always had a hard time accessing funding. They don’t have the collateral banks need for loans and the microfinance institutions made specifically to target SMEs have steep interest rates which makes them extremely unattractive.
Mthuli Ncube also shared that the National VC won’t target a specific industry:
The fund will not be sector specific, we just want to see new companies, new investments and jobs – those are critical pressure points.
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5 comments
Lol, aloota continua… What happened the Old Mutual youth development fund and the POTRAZ tech fund? Millions dished out, no updates or success stories. Just another feeding trough filled with food for the greedy and nothing for the needy.
Clearly another vision without a mission. As an Coloured born and raised South African during the Apartheid regime the struggle continues. We used to have busses in late 70s to the early 90s.We were at that time the only bus operators who were used to transport our AFRICAN elders to the the Eastern Cape from Mbekweni out in Paarl. Today it’s a battle to get a Government loan or grant to start any new venture. We as a family is so disappointed as most of us dedicated our time and energy tofit into the mainstream. We felt DESERTED and being exploited without a thank you. We left school early due to riots and help fighting for our freedom. Today we are handsomely ignored as we not black enough.Today our efforts are also taking for granted by those who came in at the dawn of democracy to benefit from our freedom which we fought for so tirelessly .Can we as Coloured role players get some sort of idea why we are being sidelined to benefit from the fruit of this country which we fought shoulder to shoulder with our AFRICAN brothers .
Excellent point well said
Very true
I’m feeling for youcoloured. The same crap in America they use us as black, but when it comes to money we not so black anymore. A starategy by black for years in the America’s.I’m sure the true blacks,this ‘ridin’ the fence’ hidious crap, are collaborating with white to leave us out. A change is coming, checkmate !