26 January 2004

An international development agency is preparing to pump R12-million in finance and other development services for small businesses in the Eastern Cape in the next four months, the Eastern Cape Herald reported recently.

The funding is aimed at small businesses that require as little as R500 to get under way, but will also help larger enterprises with loans of up to R100 000.

Eastern Cape Development Corporation spokesman Moshe Sohaba was quoted as saying that the project partners would be the Corporation and the UN Office for Project Services, the implementing arm for the Italian Government.

According to the newspaper, a pilot project was already under way in the Oliver Tambo District of the province and should be completed by March. If successful, the funding would be rolled out to other areas of the province.

"We are successful in providing loans for R100 000 or more. However, this hasn't helped the smaller entrepreneur who, quite clearly, has been alienated. Furthermore, we have had limited options in terms of to whom we could make referrals. Without a doubt, this initiative will make a huge difference to both the ECDC and this (small) business person," Mr Sohaba said.

Visit the Eastern Cape Herald website for more information.