Masisizane Fund creates 10 000 jobs, eases rural poverty – says impact study
Existing and aspiring entrepreneurs aiming to take advantage of the impending economic recovery can take heart from an impact study by development financier, Masisizane Fund, which reveals the success of the fund’s entrepreneurship-funding model in rural areas.
Significantly, the impact study shows that over the last two years, Masisizane’s funding has created 9 690 jobs from the R41,2 m allocated to deserving entrepreneurs, and achieved a loan repayment rate of more than 95%.
About 8 000 of the employment opportunities were created in impoverished rural areas, in line with the view that rural economic development is crucial to solving South Africa’s stubborn unemployment rate.
The impact study, conducted by the Ilima Trust in association with GreaterGood South Africa (GGSA), has resulted in the development of a social impact assessment process and tool that will enable Masisizane to track the social transformation potential of its efforts.
“Masisizane’s achievements are measured not only in terms of the number of enterprises assisted and jobs created, but especially in terms of the social benefits that the financial and non-financial assistance delivers to the business owners, their households and communities,” said Charmaine Groves, CEO of Masisizane.
The Masisizane Fund puts resources behind initiatives that help generate sustainable economic and social benefit in South Africa. It is funded through the proceeds of the sale of shares following the closure of the Old Mutual Unclaimed Shares Trust in 2007, after a process of extensive consultation with various stakeholders, and approval by Old Mutual shareholders.
According to Groves, in many cases, access to a Masisizane loan has enabled beneficiaries to provide for their households and earn sustainable livelihoods.
“Access to free financial education has also significantly improved the prospects that these new enterprises will be sustainable,” added Groves.
Rising to the social and economic challenges of our time and narrowing the divide between South Africa’s parallel economies, requires flexibility and a different approach. It is against this background that Masisizane has broadened its focus to include youth and the disabled. Masisizane’s mandate previously was confined to women empowerment.
In addition, Masisizane’s funding has been increased by a further capital injection of R150m from reserves set aside following the closure of the Old Mutual Unclaimed Shares Trust, to more than R650m, signalling the development financier’s intention to be a key player in rural economic development efforts.
‘Economic empowerment of youth remains a key priority for the country and focusing on entrepreneurship and the aspirations of the youth is essential for the stability of the country and accelerating social transformation,” says Groves.
“The disabled are the most vulnerable group in South Africa. Very few organisations focus on job creation for the disabled, so we would like to support efforts to integrate them into the corporate workplace, as well as supporting entrepreneurship amongst this marginalised group,” she adds.
