The National Youth Development Agency (NYDA) is an organisation established in 2008 to help address the problems facing South African youth such as skills development and unemployment. The NYDA plays a lead role in ensuring government and private sector and civil society make youth development a priority by identifying and implementing solutions to address youth development challenges.
The NYDA is moving away from youth enterprise finance in the form of loans and more toward micro-finance grant provisions. The grant provides both financial and non-financial support to youth entrepreneurs. Grants start from R1 000 to a maximum of R100 000 and support includes mentorship programmes, a voucher programme, market linkages, entrepreneurship development programme, youth co-operative development programme, and other business support services required.
NYFA Funding: Types of NYDA Funding Available
For youth entrepreneurs seeking grants, grants are available for (and not limited to) motor mechanics and panel beaters, electricians, plumbers, domestic appliance repairs and services, hair dressers, cleaning companies, beauticians, small-scale recycling businesses, car washes and street vendors to name just some. Grants can be issues through the following channels:
- Individual grants issues to formal and informal businesses that in the start-up phase of their business or in the development stage.
- Grants issues to co-operatives, meaning an autonomous association of people united to meet common economic and social goals through a jointly owned and democratically controlled enterprise.
- Another avenue is community development and facilitation projects.
How to access NYDA funding
NYDA grants are available to individuals or co-operatives that meet the following criteria:
- Applicants must be youth (18 to 35 years old) with the necessary skills and experience or show the potential of skills for the business and industry in which they wish to operate
- Applicants must be South African citizens with ID documents and operate their business within South Africa
- The applicant must need the grant to start or grow their business i.e. no other source of capital
- Applicants must be involved in the operation and management of the business on a day to day basis and be prepared to work in it full-time
- The business may be formal or informal and categorised as a micro-enterprise, e.g. street vendor
- The enterprise must show, or have potential to be commercially viable and sustainable
- Applicants should be sole traders or in the case of groups have a minimum of five people.
Grants will not be given to businesses that require less than R1 000 or more than R100 000, that fall within illegal or ill-reputable activities like gambling, drugs, arms, sex trade. Businesses rejected for grants also include those where tobacco or alcohol are the primary income generator, where the business operates as an investment trust, venture capital, seed capital, or where the applicant requires NYDA to issue grants to a third party.
Grants may be used for working capital, asset finance and stock purchase.
Contact details for NYDA funding
For more information on funding available visit www.nyda.gov.za or call the call centre on 0800 52 52 52.