The investment comes as a result of the successful application by the Cape Craft & Design Institute (CCDI) for project funding through the Jobs Fund's first enterprise development funding window in 2011.
Under the programme, the DBSA Jobs Fund covers 80% of the new intervention costs, with the craft enterprises making up the balance. The funding will be invested in areas such as product development, technology enhancement, equipment and process upgrades, marketing and business management.
The project was formally launched in Cape Town on Monday, 3 September. "The CCDI's application is one of only 41 to have received the green light from the DBSA," said CCDI executive director Erica Elk. "In our nearly 11 years of operation, we have assisted enterprises with everything from mentoring to marketing, and business plans to budgeting. We are delighted to now have helped raise financial resources of this extent, to help businesses invest in improving their products, processes and competitiveness to create new jobs."
Dumisa Hlatshwayo, chief investment officer of the Jobs Fund said the craft sector is diverse and dynamic, comprising primarily small and micro businesses, with the capacity to contribute significantly to people's lives and the economy of the country. "Working with the CCDI gives us the opportunity to assist a large number of different enterprises in a coordinated manner. We also have the reassurance that these craft enterprises will enjoy the support and guidance of an experienced sector development agency."
Western Cape Minister of Finance, Economic Development and Tourism, Alan Winde, said: "The design and craft sector is a key contributor to the creation of job opportunities and is a major attractor of trade and investment. We are proud to support the CCDI and congratulate them on successfully applying for additional funding from the DBSA."
The project is managed by the CCDI's business support programme manager, Sarah Polonsky, and supported by programme director, Mariette Williams. "The process of identifying a vision and assessing current strengths and weaknesses with each of the companies applying for this programme has been extremely valuable," said Polonsky. "Many of the craft produces work in isolation, with a short-term focus. Through this process of interrogating their visions, they now have clearer medium to long-term strategies."
