Unveiling the fund logo to business and media at the presidential guest house in Pretoria, the deputy president said it would help mainly black woman entrepreneurs. "The Isivande fund is here to stay," she said. "It is there to make a difference in a measurable manner."
The fund is aimed at registered female-owned or managed enterprises that have existed for two years or longer. It will offer loans from R30000 to R2 million in a first phase aimed at small to medium enterprises.
Trade and Industry Minister Mandisi Mpahlwa said at the same ceremony that a second phase, to be launched later in the year, would focus on medium to large enterprises.
"As part of promoting and marketing the fund, we shall through SA Women Entrepreneurs Network be hosting education seminars throughout the provinces to facilitate easier access," he said.
The fund was initiated by the department of trade and industry following a study, commissioned in 2006, that revealed women had limited access to finance.
Mpahlwa said black women in South Africa were employed mostly as teachers or nurses. "Women only occupy 1.5 percent of all directorships in major South African companies, [and] black women occupy only 0.5 percent of directorships," he said.
He said the country had a long way to go in ridding itself of this "skewed gender balance" as women were under-represented in the formal sector but over-represented in the informal sector.
There was also a significant disparity in salaries between men and women, with women earning on average only 66 percent of what men earned in the finance sector. "We have a lot of catching up to do," said the minister.
Mpahlwa thanked Old Mutual for its help in establishing the fund.
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