Slow growth, rising unemployment, severe drought and political tensions are among the major hindrances to South Africa achieving a progressive economy.

A relatively quiet first half of the year for South Africa has been predicted by research and market analysis firm, Nomura.

According to The South African Institute of Race Relations (IRR), the three biggest provincial economies - Gauteng, KwaZulu-Natal, and the Western Cape - account for 55.2 percent of South Africa's population but contribute 64.1 percent to South Africa's gross domestic product (GDP).

Ithala Development Finance Corporation, KZN's provincial development agency, remains optimistic that private sector investment will be key to beating the odds and stimulating growth this year. The predicted GDP growth for 2017 is forecast at 1.0 percent.

Development Finance

Institutions (DFI) such as Ithala continue to play a pivotal role in helping to advance government's 'developmental' priorities. As instruments for positive change, DFIs strive to achieve a range of objectives to improve citizens' quality of life - enhance public service delivery; increase economic growth; improve infrastructure; and create jobs.

In 2016, 367 SMMEs and cooperatives were granted business loans, thereby facilitating 2 396 jobs in KZN. Ithala disbursed business loans totaling R120m to SMMEs and co-operatives during 2016.

"Our business intent is simple - as an organisation invested in people, we work tirelessly to empower the community and to provide an environment conducive to a better quality of life and improved prosperity, thus nurturing a legacy of growth, selfdevelopment and upliftment," said Yvonne Zwane, Ithala Group Chief Executive.

"For 57 years, Ithala has remained steadfast in its commitment to banking the unbanked and championing the development of commercial centres and industrial estates in rural areas, whilst also financing and supporting fledgling SMME enterprises."

The call by KwaZulu-Natal MEC for Economic Development, Tourism and Environmental Affairs, Sihle Zikalala, to enable the growth and development of SMMEs and co-operatives is supported at all levels of Ithala. In a recent interview with Ukhozi FM, the MEC said: "There are certain products (called set-asides) that the government will only purchase from SMMEs and cooperatives as a way of keeping them in business.”

"There is another programme called Black Industrialists - it is a government programme designed to assist people interested in industrialisation. We assist people through our agencies Ithala and KZN Growth Fund where they can get help with research or how to get into the industry."

Ithala is a primary driver of economic development and a strategic enabler of support to people in disadvantaged communities.

The agency's purpose is to make a real and sustainable difference in the lives of all those it serves by implementing strategic programmes as the weapon for positive change.

For more information
T: 031 907 8911
www.ithala.co.za