1. Outline About UYF Programmes of UYF
Description, Achievement, Lessons, Challenges Context (Conditions, Policies)
Financial information
Plans
Outline

2. History
Feb 1998
Budget Speech - Minister of Finance announces a levy on the demutualisation proceeds establish the UYF
Sep 1998
Government Gazette - Demutualisation Act
Oct 1999
Monies are transferred from SARS to the Umsobomvu Youth Fund account and placed a deposit with CPD
National Treasury begins the process of appointing the Board of Directors
Nov 1999
Articles of Association drafted
Jan 2000
Board of Directors appointed
Feb 2000
Board of Directors meet for the first time
Mar 2000
Board begins the process of appointing the CEO

3. History
Jul 2000
Government Gazette amending the Demutualisation Act to exempt the UYF from income tax
Aug 2000
Consultative Forum
Jan 2001
CEO and COO are appointed
Strategic planning session between the Directors and Management to establish four key result areas for the UYF
Mar 2001
Bankers, auditors and asset consultant are appointed
Work commenced on the internal structure, policies, procedures and systems to administer the UYF
Board of Directors approve the focus areas of the UYF
Apr 2001
Recruitment process to fill 10 strategic posts begins

4. INVESTMENTS & PROJECTS
Focus of the Fund
INVESTMENTS & PROJECTS
Contact, Information &
Counselling
Skills Development &
Transfer
Youth
Entrepreneurship
SME Finance
Cooperative Funding
Micro Finance
Business Development Support
Entrepreneurship Education
New Venture Creation Learnership
Business skills development voucher programme
Youth information service
Youth line
Youth portal
Youth advisory centres
Youth Card
On-the-job Training / Skills Development
National Youth Service
School to Work (FETCs)

5. Commitments TYPE NO of PROJECTS AMOUNT Core projects 74 R589 million
M& E, CBR 16
R 13,6 million
TOTAL 90
R602 million
Commitments

6. Targets*
*At current funding commitment level
jobs by 2006

7. Number of beneficiaries
Participants to date
Programme
Number of beneficiaries
1. Youth Advisory Centres
80 554
2. Youth Line
83 480
3. Business Development Services Voucher Programme
3 356
4. Entrepreneurship Education
10 000
4. Small & Medium Enterprise Finance 60
5. Micro Finance
1 015
6. Youth Co-operatives Finance
120
7. School to Work
2 236
8. Community Youth Service
990
9. Skills Training (including Volunteer Campaign)
1 572
10. Youth Portal
Total beneficiaries in excess of

8. EntrepreneurshipTarget Market Existing businesses Start-ups
Aspiring Entrepreneurs

9. PROGRAMME AREAS

10. EF PROGRAM STRUCTURE
Progress Fund: R100 million Fund – provides finance from R100k to R5,000k to SMEs which are beneficiaries of procurement contracts.
Franchise Fund: R125 million Fund – provides finance from R150k to R3,000 for purchase of new or existing franchises.
General Fund: R90 million Fund – provides finance from R50k to R5,000k to SMEs which are not covered by Franchise or Progress Fund
Micro-Finance: Provides finance of up to R50k for start up or expansion of existing business.
Co-operatives: Provides finance to groups of people in co-operative up to R500,000 per co-operative

11. ACHIEVEMENTS Micro: 1015 enterprises (2000 jobs)
SME: 60 SMEs (979 jobs)
Co-investment: R50 million (7:1)
Private sector involvement – Banks
High (50%) support for women in micro
Returns = 21%-22% (Portfolio)
Bank direct commitment of R160 million and indirect of R320 million)
Strong expression of interest from other Banks
Partnership in process with ECDC and Ithala
Achieved significantly more than Khula, Msele-Nedventures, NEF Ventures, Equity Africa

12. 2004/2005 PLAN Approve R60 m loans/investments to SMMEs
SME (70), Co-operatives (28), Micro (1,208)
Leverage private sector finance = 2:1 (R340m : R170m)
Implement partnerships with ECDC, Ithala, MEEC, NPDC; Provincial Investment Promotion Agencies and Provincial Departments
Create / preserve 3,000 jobs
Women-owned SMMEs = 60%
Design, develop, implement mainstream micro
Gross portfolio return >20%