The announcement marks the establishment of the first of several partnerships that Old Mutual intends to create with like-minded organisations that share its vision and passion for poverty alleviation through job creation and the economic empowerment of women. Old Mutual has committed R260 million to this cause, as the main programme to be funded from the R400 million it set aside for the Masisizane Fund, a Section 21 company created following the closure of the Old Mutual Unclaimed Shares Trust.
Masisizane, or “let's help each other”, is a programme aimed at supporting AsgiSA, and generally supporting national economic transformation.
The J4G programme aims to create about a million jobs over the next three to five years, through projects aimed mostly at women-owned and controlled small businesses and co-operatives in rural areas and semi-urban areas around cities. One of the criteria of the J4G Women's Fund is that 51% of employees should be women and 75% black.
Specifically, the J4G Women's Fund will support people who want to start small businesses, including co-operatives in these areas. The Fund also seeks to develop people's skills to successfully run their businesses and assists them in the finding of markets and procurement agreements.
The implementation of J4G's programme rests with the Independent Development Trust (IDT), which was established in 1990 by the government.
“The role of J4G is to identify existing small and medium enterprises that require funding to take them to the next level and create more jobs, as well as some start-up business opportunities. As part of our agreement, the J4G programme will identify potential businesses, screen them and provide Masisizane with a shortlist,” said Rojie Kisten, General Manager of Old Mutual Corporate Affairs.
According to Kisten, interest-bearing loans will be made to the selected businesses at an extremely favourable rate. The loans are limited to a minimum of R25,000 and to a maximum of R1 million, with some discretion so that viable business ideas can be given due consideration.
