Over the past few months, a dedicated team of officials has been going through more than 25 934 applications for funding through Operation Vula Fund.

In terms of Tier 1, we took a decision to set aside funding starting from R50 000 for emerging  entrepreneurs in the informal economy located in the townships and rural areas.

We wish to report to entrepreneurs that after an extensive adjudication process out of 18, 608 applicants, only 4 915 were successful. 

For Tier 1, more than R191 million (R191 236 919,20) will be disbursed to the successful applicants upon the completion of an extensive due diligence processes.

This process which is currently underway involves visiting all applicants to verify the existence and legitimacy of their businesses. 

At this stage,  the Operation Vula Fund Team of officials has already visited and verified businesses in all  municipalities under ILembe District.

In addition, the team has also completed the verification of businesses in Umzimkhulu and Greater Kokstad local municipalities under Harry Gwala. This week the team will also visit municipalities under uGu District. 

Other municipalities are in the pipeline.

I am cognisant of the fact that the team is expected to travel long distances – to the townships and deep rural areas - within a limited time frame.

In this regard, I have mandated the Acting Head of the Department Dr Thandeka Ellenson to allocate more resources to the team in order to speed up the verification process.

We wish to draw your attention to the following:-

●Regarding applications for Tier 2 - R300 000  funding and above, we received 4 446 applications.

●And for Tier 3 - R2 million funding, we received 2 880 applications.

●All in all, we received 25 934 applications.

●For Tier 2 and 3, the adjudication process will get underway once adjudication panels have been appointed. We commit to update the public as we move forward. 

Finally, we understand the impatience of our entrepreneurs.

We plead for their patience as we want to ensure the verification and adjudication processes are fair and in line with regulations as stipulated in the relevant government prescripts.

 

Issued by the MEC of Economic Development, Tourism and Environmental Affairs, Siboniso Duma