Disgruntled young entrepreneurs in the Eastern Cape are demanding answers from Premier Oscar Mabuyane regarding the R150-million Isiqalo Youth Fund, a funding scheme intended to support youth-owned small, medium, and micro enterprises (SMMEs). The initiative, launched by Mabuyane in 2019, aimed to provide financial support to young entrepreneurs, create jobs, and stimulate economic growth in the province.
In a Sunday World article published on June 18, 2023, more than 60 entrepreneurs claimed they had been perpetually struggling to access funding from the Isiqalo Youth Fund. They accused Mabuyane, who is also the ANC provincial chairperson, of using the project to enrich a politically connected few within the ANC.
Luphumlo Joka, founder of Global Leadership Consultants, voiced these concerns in a complaint letter to Mabuyane’s office on August 2, 2022. “We have been facing an uphill battle with Premier Mabuyane and the director of the Isiqalo Youth Fund. We have been sent from pillar to post when demanding answers about the funds. Nobody tells us what happened to the funds earmarked to fund SMMEs in the province,” Joka wrote.
During his state of the province address in February 2023, Mabuyane announced an additional R150-million investment into the Isiqalo Youth Fund. Despite this, many young entrepreneurs reported they had yet to see any benefit from the fund. The provincial economic development department initially managed the fund, but it was later transferred to Mabuyane’s office.
Among the disgruntled entrepreneurs is Linomtha Gadlela, owner of Ezamazocho Namanyobe, who applied for funding in 2021. “I’m aware that Isiqalo funds foreigners, but when we ask why our funds aren’t forthcoming, we get stories,” she lamented.
Wayde Jansen of Kingshine shared a similar frustration, noting that his organization has been waiting three years for a R1.2-million loan.
Cwengile Sithole, an official in Mabuyane’s office, informed Joka that his correspondence had been forwarded to Yanga Tantsi, the then-director of the youth fund. However, Tantsi, who has since left his position, declined to comment in June 2023 and referred questions to Khuselwa Rantjie, the provincial communications general manager. Messages and calls to Rantjie went unanswered.
Further complicating matters, a digital advertising screen in Bizana, funded by the Isiqalo Youth Fund at a cost of R800,000, has remained shut down after only a few months of operation.
In response to a separate inquiry from Yunus Cassim of the DA in the Eastern Cape legislature, Mabuyane stated that R50-million had been allocated to the fund over three years, with R28.4-million supposedly disbursed to SMMEs. However, this has not quelled the frustrations of young entrepreneurs, who have resorted to forming a WhatsApp group to share their grievances and demand transparency.
Cassim criticized the lack of transparency, saying, “I asked the premier how they did the checks and balances and how the beneficiaries were selected to qualify.”
The Eastern Cape youth is calling for the fund to be returned to the Department of Economic Development, Environmental Affairs, and Tourism (DEDEAT), citing a lack of support from the Office of the Premier (OTP).
On July 31, 2024, the Winnie Madikizela-Mandela Local Municipality will host the official opening ceremony of the Mbizana Civic Centre, with Premier Mabuyane set to unveil the newly built municipal offices. This event is likely to be another platform where the youth will seek answers regarding the elusive Isiqalo Youth Fund.
The growing discontent highlights the urgent need for transparency and accountability in managing public funds meant to empower the province’s young entrepreneurs.
