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A R50M Cooperatives fund to benefit primary coops in the EC province

The Department of Economic Development and Environmental Affairs (DEDEA) has made a provision of R50m fund to support and develop Cooperatives within the province.
The main focus of the fund will be to promote the viability of the cooperative enterprises in the province. It will serve as a revolving fund for the support of Primary Cooperatives involved in Manufacturing and Services Sectors.“In my 2009/10 Policy Speech we identified Enterprise Development and Support and rural development as one of the seven dimensions that our department will be focusing on. I am therefore excited that we have managed to deliver on this commitment” said the MEC for the Department of Economic Development and Environmental Affairs, MEC Mcebisi Jonas.
The fund is called the Imvaba Eastern Cape Provincial Cooperative Development Fund (Imvaba ECPCDF) and it is informed by the Eastern Cape Provincial Cooperatives Development Strategy, Cooperatives Policy (2004), National Cooperatives Act No 14 of 2005 and the Cooperatives Bank Act no 50 of 2007.
The targeted Sectors include Agri- business (agro-processing), Tourism, ICT, Chemicals, Textile and Clothing, Timber and Forestry, Metals, Business Processing Out-Sourcing, and Arts and Crafts. The Provincial Cooperative Development Fund is designed as part Loan finance and part developmental (seed capital) 70 – 30 percent split. The Loan Fund is geared towards the support of viable and sustainable cooperative enterprises on 3 - 5 year terms.
The Imvaba ECPCDF will be managed as a distinct product through Eastern Cape Development Corporation (ECDC) while creating necessary capacity for the establishment of a cooperative bank in line with the provisions of the cooperatives bank Act no 50 of 2007. According to Ms Phumla Ndaba, DEDEA General Manager; Economic Development, the ECDC will service the market that is between R20, 000 and R1million at zero interest rate. 
“The focus on primary cooperatives is informed by the desire to have vibrant cooperative enterprises that are directly involved in economic activities that have a potential of generating employment opportunities for their members and contribute to sustainable community livelihoods” said MEC Jonas. The Imvaba ECPCDF is also intended to assist cooperatives with the development of requisite skills and access to markets.
The provincial cooperative strategy will be implemented over the medium term expenditure cycle with a phased implementation plan for a 5 year period. The implementation plan is modelled on a wider stakeholder partnership with key relevant institutions to leverage on existing capacity and synergies for attainment of mutual goals. “Existing problems and challenges cannot be solved individually, a group of motivated persons who share common purpose need to come together and coordinate their efforts to deal with their challenges. That is the approach we are taking and we are convinced that given the nature of our challenges in the province, this approach is appropriate” concluded the MEC.
For more information on application forms, guidelines and funding criteria, cooperatives are invited to attend the district stakeholder information sessions that will be held as indicated below:

Region/ District  Date  Venue  Time  Contact Persons  Contact No.
CACADU 05 Feb 2010 Pine Lodge
Port Elizabeth 09h00-12h00 Rishika Mitah  041 508 5800
Alfred Nzo  08 Feb 2010 Roman Catholic Church 107 Hope Street  Kokstad  09h00-12h00 Mandy Bambeni   039 7274982
OR Tambo  09 Feb 2010 SAVOY Hotel (Mthata) Nelson Mandela Drive  09h00-12h00 Nosinodi Mdala 047 5311191
Chris Hani  10 Feb 2010 Queens Casino Hotel
Queenstown  09h00-12h00 Konwaba Gcwabe  045 8084000
UKhahlamba  11 Feb 20 Riverside Lodge
Aliwal North 09h00-12h00 Xolisa Manxiwa  051 6332901
Amathole 12 February 2010  John Tremble Hall
Frere Hospital (E. L) 09h00-12h00 Nyameka Boqwana 043 707 400

The MEC for the Department of Economic Development and Environmental Affairs (DEDEA), Honourable Mcebisi Jonas will, on the 16 February 2010, officially launch this fund at Ward 5 Nonkonyana JSS Flagstaff, Ngquza Hill Municipality, OR Tambo District Municipality.

Ends//
Issued by the Department of Economic Development and Environmental Affairs (DEDEA). For enquiries contact: Mr Sixolile Makaula: Communications Manager, Tel: (040) – 609 3299, cell: 072 751 5001, Fax (040) 609 3211,   e-mail: Sixolile.Makaula@deaet.ecape.gov.za