The newly established Isivande Women’s Fund is a step towards reducing poverty among women, Deputy President Phumzile Mlambo-Ngcuka said on Monday.
Unveiling the fund logo to business and media at the presidential guest house in Pretoria, the deputy president said it will help mainly black woman entrepreneurs.
”The Isivande fund is here to stay,” she said. ”It is there to make a difference in a measurable manner.”
The fund is aimed at registered female-owned or -managed enterprises that have existed for two years or longer. It will offer loans ranging from R30 000 to R2-million in a first phase aimed at small to medium enterprises.
Trade and Industry Minister Mandisi Mpahlwa said at the same ceremony that a second phase, to be launched later in the year, will focus on medium to large enterprises.
”As part of promoting and marketing the fund, we shall through the South African Women Entrepreneurs Network be hosting education seminars throughout the provinces to facilitate easier access,” he said.
The fund was initiated by the Department of Trade and Industry following a study, commissioned in 2006, that revealed women had limited access to finance.
Mpahlwa said black women in South Africa are employed mostly as teachers or nurses. ”Women only occupy 1,5% of all directorships in major South African companies, [and] black women occupy only 0,5% of directorships,” he said.
He said the country has a long way to go in ridding itself of this ”skewed gender balance”, as women are under-represented in the formal sector but over-represented in the informal sector.
There is also a significant disparity in salaries between men and women, with women earning on average only 66% of what men earn in the finance sector.
”We have a lot of catching up to do,” said the minister, who thanked Old Mutual for its help in establishing the fund. — Sapa