Media Release - Unrest relief fund rollout for Ilembe informal traders
PRESS STATEMENT
08 MARCH 2022
ENTERPRISE ILEMBE IN PARTNERSHIP WITH IDC ASSISTS INFORMAL TRADERS AND SMME’S WITH RELIEF FUND
There was some jubilation for 70 informal traders in iLembe on the KwaZulu-Natal North Coast that were affected by the July 2021 unrest when they received business recovery funding from Enterprise iLembe Development Agency in partnership with Industrial Development Corporation (IDC).
The R5 million-rand relief fund is designed to target the socio-economic challenges of businesses in townships, rural areas, and small towns directly affected by the 2021 unrest.
Some of the traders have also previously received once-off disbursements from the Small Enterprise Finance Agency (SEFA) but for many of the traders it will be the first time they are receiving relief funding.
Enterprise iLembe’s CEO Linda Mncube said the iLembe District Municipality as its shareholder instructed government support to be sought to assist local businesses.
“At the time many businesses were already not doing well because of COVID-19 and the July unrest made existing problems worse. We then applied for assistance, both for COVID-19 and the July unrest, and we were able to access the IDC business relief fund.
“An impact study was performed by Enterprise iLembe, and it was estimated that the direct cost of damages was R322m, with about 1200 jobs lost.
“In response to this, the IDC introduced a relief package to support businesses. Enterprise iLembe was approved as a Strategic Implementation Partner (SIP) for the identification, assessment, adjudication and disbursement of funds to affected businesses,” he said.
Mncube said informal traders will be assisted with a once-off disbursement and SMME’s will be assisted in rebuilding their stores and small businesses.
“The most important part of our plan is to provide business support for informal traders and SMME’s where we will provide training for them to operate, manage and grow their businesses and to educate them about the required compliance documentation required such as SARS, FICA, CIPC etc.
“All informal traders will receive a standard amount and the SMME’s will receive a certain amount that will be determined by the value of damage done to their business following the July looting and unrest,” he said.
Naomi Koeberg, Senior Local Economic Development Manager at IDC said Enterprise iLembe was initially established and funded by IDC.
“We have therefore partnered with Enterprise iLembe as one of our Strategic Implementing Partners (SIP’s) based on their track record to assist informal traders and SMME’s.
“The pandemic affected a large number of informal traders and SMME’s and it is important that we help create a platform to assist them by growing their businesses.
“Our beneficiaries have worked extremely hard, and it was disturbing to have seen the negative impact of the July looting and unrest had on their businesses.
“We hope that this funding will help rebuild and improve the informal traders and SMME’s businesses and help support their families in the future,” she said.
Deputy Mayor of iLembe District Municipality, James Van Wye, said the informal traders and SMME's had struggled to rebuild their businesses on their own as they depended solely on the income they receive from trading.
“Through the Enterprise iLembe relief fund, these businesses will have more opportunities and can continue to grow their businesses in the future,” he said.
Mayor of Maphumulo Local Municipality, Siboniso Nyathikazi urged beneficiaries to not waste the money but to use it towards rebuilding their businesses which will ultimately benefit not just themselves but their families and communities in the long term.
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