Fin24

R10bn jobs loan scheme unveiled

2011-02-22 17:15

Johannesburg - The Industrial Development Corporation has set up a R10bn loan scheme to help companies that can create new jobs, CEO Geoffrey Qhena said on Tuesday.

The IDC "has launched a R10bn scheme, to run over five years, aimed at facilitating job creation and growing the economy", he said.

The funding would be lent to companies at an interest rate of prime less 3%.

"This will be across all IDC mandated sectors to businesses which demonstrate economic merit and efficiency in new job creation."

The IDC would consider applications for loans of R1m up to R1bn.

Projects with a "high development impact" - including job creation, rural development, broad-based black economic empowerment, and small and medium enterprises - would get a reduction of up to 1% on the IDC's loan facility.

"It is still important that businesses have prospects of acceptable profitability to service their financial obligations," said Qhena.

The IDC has also established a R750m fund to help businesses affected by the recent floods and drought.
   

Comments
  • John - 2011-02-22 18:00

    Any plan to create jobs in South Africa has got to be welcomed. However, what our politicians fail to realize or see is that jobs on a meaningful and sustainable basis will not be created until such time as the labour legislation becomes much more friendly towards those who are in a position to employ more people, i.e. entrepreneurs and business owners. Tinkering with interest rates will not induce the private sector to boldly employ more people, nor will it compensate for laws that are detrimental to prospective employers. Government - get to the real heart of the matter and stop messing around in the sideshows!!

  • SteveT - 2011-02-22 18:47

    One wonders how much of this will not reach it's intended target and go "missing" along the way.

  • SydneyG - 2011-02-22 19:06

    No, no and no! This will be wasteful, millions of fake companies will apply for these loans, and fail to produce any sustainable resulst. In stead of wasting, the government must only consider small businesses that have been running for more than years, produce audited results!

  • Jan Bantjies - 2011-02-22 19:18

    5 jobs will be created. These chosen 5 will be relatives of you know who, who`s brief wil be to steal the R10 Billion and then get Bilious Dilemma to spew his bile (A browinish yellow liquid secreted to aid digestion) and blame the white population.

  • mrsx - 2011-02-23 09:20

    Why create more jobs if our people are to lazy to work and foreigners are prepared to work for a minimum wage and dont sleep on the job just a thought.

  • Baas'Boerseun - 2011-02-23 09:30

    rather use that money to pay for the roads and in so doing stop the toll fees. That will help business and job creation a lot more.

  • SF - 2011-02-23 20:28

    Check out the conditions of the IDC loan, or should I say the strings attached. In conjunction with the dictatorial labour laws as well as the amended and new laws to be imposed..and they will go through parliament...you borrow from the IDC, and your business and all it's activities will be controlled, and monitored by the dept of labour in particular, who will want to enforce the 87% BEE rules, so you will untimately lose control after you've grown the business...to their advantage.

  • mickeyj - 2011-02-24 12:47

    I agree job creation is crucial, but the problem is compliance costs and complexity. It is just to expensive and complicated to employ people and to comply with all the zillions of different levies and taxes. Yes SARS has been doing a good job of allowing online submissions etc. but it should be made a lot easier for small businesses to comply with legislation and to employee more people.

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