Guide to Economic and Social Development Programmes

Social and economic development is crucial for the future of South Africa. South Africa has a young population which needs help to grow and succeed. By helping South Africans succeed, this will ensure the future of the country is bright.

In South Africa, economic development is defined as the efforts which seek to better the economic well-being and quality of life for a region, country and community. This is done by creating or retaining jobs and supporting incomes.

Social development is to enable the poor, the underserved and the excluded to secure a better life for themselves. In South Africa, the Department of Trade, Industry and Competition, and the Department of Social Development oversee the implementation of such programmes in South Africa.

For small businesses, these programmes give them a chance to gain business skills, access to funding, and education on issues around their business and their environment.

Programmes for healthcare are especially vital to SME owners. This helps teach them care and support for their employees, customers and themselves.

In this guide, we look at some of the social and economic development programmes available in South Africa.

Township and Rural Entrepreneurship Programme

The first economic and social development programme to look at is the Township and Rural Entrepreneurship Programme. The programme is aimed at supporting small to medium-sized enterprises (SMEs) in townships and rural areas. The focus is on blending opportunities in these areas into productive business ventures.

The government seeks to create platforms that provide infrastructural business support and a regulatory environment which enables entrepreneurs to thrive.

The following opportunities are available for qualifying entrepreneurs:

• Small-scale bakeries and confectionaries.
• Autobody repairers and mechanics support programme.
• Butcheries support programme.
• Clothing, leather and textiles support programme.
• Personal care support programme.
• Spaza-shop support programme.
• Tshisanyama and cooked food support programme.

If you want to participate in the programme, you must apply for support. This includes funding support through the Small Enterprise Development Agency (Seda), the Small Enterprise Finance Agency (Sefa), the National Empowerment Fund (NEF) and the National Youth Development Agency (NYDA).

Youth Challenge Fund

The Youth Challenge Fund (YCF) is a youth start-up programme. The programme intends to stimulate the establishment and growth of youth-owned businesses, promote digital skills, foster job creation and grow the South African economy.

The eligibility criteria for the programme aligns with the National Youth Policy (NYP). To qualify for the programme, you must:

• Be between the ages of 18 and 35.
• Be registered with CIPC and be prepared to register with SARS and the UIF.
• Your business must be 100% youth owned.
• You must be involved in the day-to-day operation and management of the business.
• The business must have one or more full-time employees with plans to add more employees.
• You must be prepared to participate in Business Development Support and mentorship.
• Your business idea must be commercially viable, sustainable and feasible.

To apply for the programme, register on the Sefa portal. To help your application be successful, download the checklist for guidance.

The Tourism Equity Fund

The tourism sector in South Africa employs over 2,56 million people. Considering the unemployment rate in South Africa, the sector is crucial to reducing unemployment.

The Tourism Equity Fund (TEF) was established by the Department of Tourism in partnership with private-sector banking organisations. The fund aims to promote growth and transformation in alignment with the Tourism BBBEE sector codes. Additionally, it seeks to address funding challenges in the sector and foster job creation in the sector.

To apply, you must go through a three-stage application process:

Stage 1: Application

You must complete and submit your application through Sefa. You may also apply for funding (up to R15 million) from other financiers on the website.

Stage 2: Pre-screening

In stage two, your application will be screened against the qualifying criteria. If you meet the criteria, a process of due diligence will be conducted. This is also where the feasibility of your application will be looked at.

Stage 3: Due Diligence

During this stage, your application will be assessed for financial viability, scalability and sustainability. Processes, systems and capabilities will be tried against the supporting documents. If you are successful in this stage, your application will be considered for approval.

Note: Application success is limited to the availability of funds.

The TEF is focused on the following areas:

Accommodation – This includes places like hotels, resorts, bed and breakfast (B&B), game lodges, guesthouses and backpacker facilities.

Hospitality and related services – This category includes conference and convention venues that are tied to accommodation facilities, restaurants and catering services. Private attractions which are within well-established tourism hubs are also eligible.

Travel and related services – Includes tour wholesalers, tour operators, travel agents, tourist guides, car rental companies and coach operators.

The Expanded Public Works Programme (EPWP)

The programme is focused on reducing unemployment and poverty by providing work opportunities using labour-intensive methods. The programme seeks to help unemployed South Africans acquire work-based skills and workplace experience.

This economic and social development programme is implemented in four sectors, namely infrastructure, social, environment and culture and non-state (led by the departments of cooperative governance and public works).

Opportunities under the EPWP:

Vuk’uphile learnership programme.
National Youth Service programme.
Working on Fire programme.
Tourism programme(s).
National Youth Chef programme.
Environmental programme(s).
Pharmacy assistant programme.
Early childhood development programme.
National School nutrition programme.

To qualify for the programme, you need to meet the following criteria:

• You must be unemployed and unskilled.
• You must be disabled.
• If you are a youth, you must be between the ages of 16 and 35.
• Women or men who are not classified as youth and fit the other criteria can also apply.

To apply for the EPWP, you will need to contact your local municipality and find out which EPWP projects are available. These will be projects that need temporary workers.

Note: EPWP projects are communicated by ward councillors, municipal social facilitators, community development workers and through community social media pages.

Visit the EPWP website and the EPWP Facebook page for more information.

Operation Phakisa

Operation Phakisa is aimed at unlocking the Economic Potential of South Africa’s oceans. Six focus areas have been prioritised to help unlock the economic potential of South Africa, namely:

Marine transport and manufacturing (led by the Department of Transport).

Offshore oil and gas exploration (led by the government of mineral resources).

Aquaculture (led by the Department of Agriculture, Forestry and Fisheries).

Marine protection services and ocean governance (led by the Department of Environmental Affairs).

Small harbours development (led by the Department of Public Works).

Coastal and marine tourism (led by the Department of Tourism).

The programme offers skills development and capacity building led by the Department of Higher Education and Training. This is done through the establishment of the South African International Maritime Institute (SAIMI).

Additionally, the programme offers research, technology and innovation led by the Department of Science and Innovation.

Youth Employment Service (YES)

The business-led initiative was established in 2016 through a partnership between the government, labour and businesses. The programme aims to stimulate job creation through company investment and by leveraging the government’s existing recognition like the Employment Tax Incentive and BBBEE.

The initiative has three channels for youth employment opportunities:

Corporate work experiences – Businesses that take part in the initiative must create a one-year paid position for youth aged between 18 and 34.

SMMEs – Small businesses that can’t employ more people have the chance to sponsor the salary and support costs for a one-year placement in an SME.

SMME development – The youth are encouraged to start and build their own businesses. They can do this with support from the YES in the form of training, capacity development and value-chain integration.

To qualify for the programme, you need to meet the following criteria:

• You must be between 18 and 34 years old.
• You must be unemployed for more than six months.
• Must be black (African, Coloured or Indian).

To apply for the YES initiative, visit the Yes4Youth website. Also follow Yes4Youth on Facebook, Twitter and LinkedIn (Yes4YouthZA).

Healthcare programmes that fall under the category of economic and social development programmes are conducted under the Department of Health. These programmes are designed to educate South Africans about health safety.

MomConnect Technical Solution

MomConnect is an initiative by the Department of Health that aims to support soon-to-be moms. The programme uses cell phone-based technology which is integrated into maternal and child health services.

The objectives of the initiative are:

• To introduce a new way of registering all pregnancies electronically and as early as possible.
• Send direct and targeted health promotion messages to pregnant women to improve their health and that of their infants.
• To give pregnant women an interactive mechanism for feedback on the service they have received.

The service is free for the user and messages are delivered in all official languages. The programme is voluntary and expecting moms can opt out at any time.

HIV and AIDS Life Skills Education Programme

The programme has a mandate built from the National Policy on HIV and AIDS Learners and Educators in School from 1999.

Initiated in 2000, the programme is implemented in all public schools with a strong focus on learners in Grade 1-12. The programme seeks to integrate HIV and AIDS and relevant life skills into the school curriculum as a strategy to prevent the spread of HIV.

It also seeks to provide support to learners who are infected and affected by HIV and AIDS.

The programme focuses on mainly curricular activities in the following areas:

• School educators are trained to implement sexual and reproductive health (SRH) and TB programmes for learners within the curriculum.
• Procurement and distribution of NCS and CAPS-compliant Learning and Teaching Support Material on HIV and TB.
• Curricular activities on SRH and TB.
• Promote activities with learners, educators and school communities on SRH and TB.
• Support and care activities for learners and educators affected by HIV and AIDS.

Economic and social development programmes not only help South Africa grow, but it also gives business owners a space to develop their business skills and receive funding and education on issues around their business and their environment.