The KZN MEC for Economic Development, Tourism and Environmental Affairs, Rev Musa Zondi, on Tuesday visited the offices of the KZN Growth Fund Agency, accompanied by a delegation comprising the Acting HOD – Dr Thandeka Ellenson and Head of Ministry – Mr Archie Khumalo. The visit is the first to the entity since MEC Rev Zondi’s appointment in June.
In the closed-door meeting with the interim Board and the EXCO, Rev Zondi highlighted the need for the entity to continue to take the lead in fulfilling its mandate as the catalyst for economic development in the province. “I am very happy to visit the KZN Growth Fund Agency today and to engage with you in your environment. Our entities are the arms and feet of EDTEA, and we rely on you to execute your mandates to address our province’s broader issues,” said MEC Rev Zondi. He lamented the extreme poverty experienced by many in the province, even when KwaZulu Natal is so rich in economic opportunities and natural beauty and has an abundance of natural resources. “We therefore need to uplift our communities and change the fabric of society so that all citizens of the province – both urban and rural – can access and claim the dividends of 1994,” he added. MEC Zondi cautioned that the privilege we now enjoy in urban KZN should not blind us from the realities of poverty, and that is why a concerted effort to improve the quality of life for the people of the province is needed.
The Board, chaired by Dr Cassius Lubisi, welcomed the visit by MEC Zondi and the EDTEA delegation. Dr Lubisi said the visit was an opportunity to give the EDTEA leadership a clear view into the day-to-day operations of the entity and to broaden their understanding of the operations and challenges that are navigated daily. “We are honoured by your collective presence, and we welcome the opportunity to pull back the curtain and show you how the cogs of the KZN Growth Fund Agency work,” said Dr Lubisi.
Lubisi introduced MEC Rev Zondi to the other members of the interim board, and to the members of the KZNGF Agency EXCO. “We fully appreciate our role as one of the entities of EDTEA and we are positioned to collaborate and complement our sister entities,” he added. He went on to emphasize that the responsibility of job creation in the province is one shared collectively by all EDTEA entities and that the shared objective is to minimise inequality for the previously marginalised members of the province.
In highlighting the current strategic re-direction of the Fund, Acting CEO, Tshidi Ikaneng talked the EDTEA delegation through the gazetted changes that have transformed the KZN Growth Fund from a Trust into an Agency. “We fully understand the responsibility we bear as a developmental funding institution, to ensure that we are providing the kind of funding that previously disadvantaged black industrialists have failed to access from traditional funding sources,” said Ikaneng. She emphasized that the strategic positioning of the KZNGFA as a DFI is about levelling the economic playing field and providing opportunities for black-owned businesses to access favourable funding to support their scaling-up from being SMMEs into a medium to big business. “We have made our products accessible to the right calibre of black business owner, so we can dedicate more time to the business of direct lending and equities,” she added. She unpacked how the new direction of the KZN Growth Fund Agency will require the tweaking and updating of policies and practices, to bring the operations of the entity in line with the gazetted changes.
MEC Zondi was given a candid view into the operations of the KZNGFA, through presentations from the heads of the different business units, with the bigger one being the investment team where the decisions on which projects to fund are made, and who ensure the projects are supported and empowered to reach the full potential.
The team shared the developments around the launch of the new funding application portal. “As we service high-risk projects, our application process is stringent and requires close attention to detail. Therefore, this portal will streamline the application process, and additionally serve to guide applicants on the correct process to follow when applying for our different funding products,” said the Acting CEO. New applicants will be able to access the funding portal in August 2024.
In his closing remarks, the MEC called on the Board of Directors and Exco to understand how important it is to co-exist as EDTEA partners and be active agents of change. MEC Rev Zondi reaffirmed the Fund’s mandate to stimulate the economy and contribute to stabilizing the economy over the next five years. “Our commitment as the new government is to create a climate that is conducive to economic growth; we cannot afford to fail,” he concluded.
The meeting ended on a high note, with a renewed commitment to continue with the work of the KZN Growth Fund Agency.
