The Eastern Cape is set for a 1,200 jobs boost as the provincial Job Stimulus Fund sets off to a good start.
MEC for Economic Development Environmental Affairs and Tourism, Mcebisi Jonas, says R12.1m will be disbursed to 19 businesses that were successful during the first round of applications.
The announcement comes as the Eastern Cape Development Corporation (ECDC), which administers the fund, prepares for the second window for applications, starting 13 February to 16 March 2012.
The R50m fund offers incentives to targeted industrial sector businesses, with the aim of boosting job creation in the province.
Jonas says the response during the first window is encouraging and reflects private sector commitment to the province.
"The response for this first round was pleasing and I am looking forward to receiving more applications," says MEC Jonas of DEDEAT.
The Job Stimulus Fund which was launched on 19 October 2011, opened its first window of application during October and November 2011. ECDC subsequently received a total of 54 web applications, which were tested against the jobs fund criteria.
Businesses are required to create at least 10 new jobs in the Eastern Cape and keep each job for a least a year from the date of employment.
Companies that qualified can claim a tax-free R10,000 for each employee hired.
ECDC, together with global accounting and business advisory firm, PWC, spent the last two months vetting and evaluating applications.
Applications were also evaluated by an internal adjudication committee, which made final recommendations to the Instrument Approval Committee (IAC).The IAC is chaired by DEDEAT's head of department, with CEOs of public entities, chamber organisations and labour as members.
ECDC chief executive Sitembele Mase says while the criteria remains unchanged, the process allows for manual submissions during the second window.
"The website still stands as an application platform but is now augmented by a manual application system.
"ECDC team is well placed to start receiving and processing further applications within this next period", says Mase.
Chairperson of the National African Federated Chamber of Commerce's (NAFCOC) Eastern Cape chapter, Pumzile Ndendela, who is also a member of the IAC, lauds the offline application process, adding that it opens up the fund to more businesses.
"We are happy with the second window of application because only companies which had access to the internet could access the opportunity during the first window.
"NAFCOC is playing an active role in assisting its members complete and submit applications during the second window. This is a step in the right direction for the province and ECDC, as a fund manager, is showing commitment to making this work," says Ndendela.
Details on the fund can be found on www.ecjobsfund.co.za. An online application process opens 13 February until 16 March 2012. Applications may also be submitted at ECDC East London office.
