The National Youth Development Agency (NYDA) is well positioned to complement with critical non financial support, the enterprise funding for the youth emanating from other state linked institutions.
This seems to be the new push of the renewed NYDA. The agency has earned a new board which is promising a new deal, a move away from its historical inertia and debilitating politics. With proper tools the NYDA can be an instrumental agency in the fight against youth unemployment, which has been quoted at more than 50%.
In a statement released yesterday the NYDA seemed to be positioning itself to supplement with non financial support the R3bn youth enterprise funding announced by the minister of economic development Ebrahim Patel.
“The NYDA wishes to commend the Department of Economic Development for its commitment to support the growth of young entrepreneurs,” said the agency. The financial commitment, made as part of the Youth Employment Accord, totalling R3 billion over the next 5 years through the Industrial Development Corporation (IDC) and Small Enterprise Finance Agency (Sefa) will go a long way in facilitating the growth and development of young entrepreneurs in South Africa”.
NYDA Executive Chairperson Yershen Pillay said “The recent financial commitment during the budget vote of the Economic Development Department (EDD) shows that as a government we are serious about job creation for young people”.
“We are aware that youth development involves more than just loan finance and we therefore hope to work together with the IDC and SEFA to complement their loan finance support with business development support and mentorship services. It may even provide the NYDA with the necessary space to concentrate on other aspects of youth development as not every young person wants to be an entrepreneur.”
“We do not want to duplicate the work of the IDC and SEFA, instead the NYDA should even serve as a conveyor belt for the screening and recommendation of young entrepreneurs to access the loan finance offered by the IDC and SEFA,” said Yershen Pillay.
“In fact, the NYDA may be able to improve chances of success for any young entrepreneur who receives a loan from either the IDC or SEFA by offering business development support and mentorship services. Such an arrangement would certainly be a good example of an integrated and holistic response by government to the youth unemployment crisis.”