SALM TEAM 
Kagiso Trust has spent much of its 40 years working to empower entrepreneurs and SMMEs, so it’s paying close attention to the debate about whether South Africa’s informal economy is so large that it makes official unemployment statistics unreliable.
Wherever the truth lies, there can be no doubt that millions of South Africans are living in poverty, and there is a pressing need to address deep structural issues underlying poverty, widespread hunger and, yes, distressing levels of unemployment, particularly among young people.
Nevertheless, the informal economy appears to be thriving, which means there is huge potential to empower emerging businesses to have a profound impact on unemployment.
Kagiso Trust, one of South Africa’s leading development agencies, is working hard to do just that. And in light of International Micro, Small and Medium-sized Enterprises (MSMEs) Day – celebrated annually on 27 June – it says these businesses are playing a key role in the economy and development.
Officially, small enterprises employ between 50% and 60% of South Africa’s workforce and contribute about 34% of GDP. This makes the SMME sector a crucial economic pillar, but it continues to face obstacles – things like complex compliance requirements and regulatory processes, as well as access to affordable credit and investment capital.
These difficulties are expressed in the theme for this year’s MSMEs Day, hosted at the United Nations in New York: “Connecting the entrepreneurs”. The UN says: “Leaders from the business, policy and entrepreneurial sectors will gather to discuss strategies for connecting MSMEs with the resources they need, including finance, technology and market access.”
Agriculture and property
In its work with entrepreneurs this is the kind of support that Kagiso Trust provides, says CEO Mankodi Moitse. “We have chosen to work in the agriculture and property sectors because both are significant contributors to the economy and lack sufficient transformation,” she says.
“In agriculture, our Tyala Impact Fund’s farmer aggregator model creates collectives of small-scale farmers, pooling resources, providing technical support and linking these collectives to markets. This investment in rural agricultural enterprise development is showing promising results, and it’s complemented by our support for initiatives that encourage young people to participate in agriculture.”
Moitse says the fund aims to open an agricultural academy to prepare a new generation of aspirant black agripreneurs, and it will also focus on identifying other career and business opportunities in agriculture.
“In the property sector, our Property Entrepreneur Accelerator’s (PROPreneurX) innovative partnership with the Trust for Urban Housing Finance (TUHF) and the University of Cape Town has established a pioneering educational initiative,” she says.
“Through specialised property management courses, we are empowering previously disadvantaged community-based organisations with vital skills in property ownership and management – creating pathways to sustainable asset development and wealth creation. We also offer a credit facility to support entrepreneurs wanting to enter the residential rental property market.”
While the debate about the accuracy of unemployment statistics continues, Moitse says Kagiso Trust is unwavering in its belief that investing in people – or igniting human capacity, as the Trust’s motto puts it – is the best investment of all.
“By providing employment, entrepreneurs and the SMMEs they run are building the human capital that leads to economic growth,” she says.
“As Kagiso Trust celebrates its 40th birthday, we are empowering individuals and communities to drive sustainable economic progress, and that’s a wonderful way to celebrate.”
#IgnitingHumanCapacity #40YearsKagisoTrust
Dj Chilu 
Diana Kinyanjui 
