South Africa is set to begin offering loans from a new 2.5 billion rand ($135 million) Youth Fund on Friday, marking a significant government effort to combat one of the world’s highest youth unemployment rates.

With nearly half of South Africans aged 15 to 34 currently jobless, the fund aims to back high-potential small and medium enterprises (SMEs) owned by young people.

Spearheaded by the National Youth Development Agency (NYDA), the initiative shifts from offering small grants to making larger, more strategic equity and loan investments.

Unlike previous programs that capped grants at 250,000 rand, the new fund will invest between 750,000 rand and 2 million rand per business, depending on its growth prospects.

The NYDA has committed 1.2 billion rand of its reserves, alongside contributions from provincial governments.

The fund will strategically target growth-driving sectors, including renewable energy, mining, agriculture, industrial manufacturing, and processing, in a bid to foster sustainable, job-creating enterprises.

Source : Business Insider Africa