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The DA in the Western Cape welcomes the provincial Department of Economic Development and Tourism’s (DEDAT) plan to bolster the growth of start-up tech companies in the region - positioning the province as the tech hub of Africa. As part of its efforts, DEDAT aims to establish a Venture Capital Credit Enhancement Fund in collaboration with leading firms in the venture capital market, serving as a first-loss investor.

A comprehensive feasibility study is currently being conducted by DEDAT to evaluate the potential impact of the proposed fund on the thriving technology sector in the Western Cape. The study aims to identify effective strategies that can drive additional capital investments and stimulate further growth in the industry.

By setting up the Venture Capital Credit Enhancement Fund and partnering with key players in the venture capital market, DEDAT seeks to position the Western Cape as the unrivalled tech hub of Africa. The fund will provide crucial support to promising start-ups, mitigating risks for potential investors, and attracting top talent to the region.

Preliminary research conducted by the department has revealed that this venture capital approach can generate three times the investment from external sources for each rand invested by DEDAT. This influx of capital will fuel innovation, create employment opportunities, and contribute to the economic development of the Western Cape.

To drive economic growth and job creation, we must attract investments into our expanding industries while recognising the immense growth potential of the tech sector. This partnership in the venture capital market will foster a thriving ecosystem for tech start-ups in the Western Cape, propelling the region's economic development and reinforcing its position as the leading tech hub of Africa.

The DA-led Western Cape Government remains steadfast in its commitment to tackling the jobs crisis through the Growth for Jobs strategy. To achieve this, the government is actively exploring all avenues for progress and leveraging innovation as a core principle.

Issued by Cayla Murray, MPP - DA Western Cape Spokesperson on Finance, Economic Opportunities and Tourism