To promote growth and development of small business and cooperatives, the Department of Small Business Development was considering adopting the Ithala Development Finance Corporation model in all nine, according to Small Business Development Minister, Lindiwe Zulu.
The Minister told parliament that her department’s key role was to intervene in the economy by creating an enabling environment that would lead to the development and growth of small enterprises and cooperatives.
“This will be achieved through addressing market failures and enhancing support measures geared for their growth and development,” she said.
The department is looking at various “delivery support models” to select the most efficient and appropriate model. This should achieve the maximum social and financial return on investment for the country. One of the models being studied is Ithala.
Ithala is KwaZulu-Natal’s provincial development agency. It is a pioneer into the unbanked communities and has established shopping malls and industrial development in remote areas. It has also provided support for SMMEs.