In response to South Africa’s deepening youth unemployment crisis and the financial constraints that often prevent small and medium enterprises (SMEs) from expanding their workforce, Business Partners Limited has established a R150 million SME Youth Jobs Fund. The Fund aims to enable established SMEs to create new employment opportunities for young South Africans while supporting business growth and driving inclusive economic development.
The launch comes as youth unemployment remains one of the country’s most pressing socio-economic challenges. According to the latest Quarterly Labour Force Survey, approximately 4,8 million young South Africans are unemployed, while four in ten are not in employment, education or training.
SMEs remain a critical engine of economic growth and employment creation in South Africa. However, many businesses face significant cost pressures when expanding their workforce. The SME Youth Jobs Fund has been designed to help bridge this gap by reducing the financial burden associated with creating new jobs.
According to Jeremy Lang, Managing Director at Business Partners Limited, the Fund has been designed to provide SMEs with access to finance specifically for labour-related costs associated with employing new staff members between the ages of 18 and 35. The Fund is expected to support approximately 220 SMEs and facilitate the creation of nearly 1,000 new jobs.
“South Africa’s youth unemployment challenge requires practical, scalable solutions that create real opportunities for young people to enter the workforce,” says Lang, who believes SMEs are uniquely positioned to play a meaningful role in addressing this challenge.
“As one of the primary sources of employment across the country, SMEs are often the first to invest in young talent, provide workplace experience and create opportunities in communities where formal employment prospects may be limited. Through the SME Youth Jobs Fund, we aim to support viable businesses that are ready to grow by reducing the cost barriers associated with hiring, enabling them to bring more young South Africans into the economy.”
The Fund is open to both existing Business Partners Limited clients and the wider SME community. Eligible businesses must have at least two years’ trading history, be viable and solvent at the time of application, and demonstrate a clear plan for creating new jobs. Funding ranging from R250 000 to R2 million will be made available to qualifying businesses to cover labour-related costs for a maximum period of two years. To further enhance affordability for SMEs, the Fund offers an initial 6-month interest-only repayment period. Funding is typically provided at an interest rate of Prime less 2%, with final pricing tailored to the specific circumstances and risk profile of each application.
“SMEs are the backbone of economic development and job creation in South Africa, and we want to help them unlock their potential to create sustainable employment opportunities for young South African talent. By helping these businesses overcome one of the major barriers to growth – the cost and risk associated with hiring new employees – we can create a ripple effect that benefits businesses, young people and communities alike,” says Lang.
In addition to supporting employment creation, the Fund is expected to broaden access to finance for a diverse range of SMEs, including women-owned businesses, while contributing to improved business sustainability and long-term economic participation.
Applications are now open. Eligible SMEs will be assessed against the Fund’s qualifying criteria, with successful applicants gaining access to funding designed to support sustainable job creation and business growth. Apply here: www.businesspartners.co.za