“At the Black Business Summit in Kempton Park, leaders stressed that funding barriers remain the biggest obstacle for South African entrepreneurs, urging finance institutions to provide clearer feedback to rejected applicants. In response, the Imbali For Her initiative launched with R897 million in blended finance, targeting nearly 975 women-owned enterprises, while the SME Youth Jobs Fund announced R150 million to support youth employment through SMEs.”
Speakers at the summit, including Small Business Development Minister Stella Ndabeni, acknowledged that while support mechanisms exist, they are often inaccessible or poorly communicated. The National Youth Development Agency (NYDA) emphasized the need for transparency, urging development finance institutions to explain why applications are rejected. As Dr. Sunshine Myende put it: “A rejection you cannot explain is a rejection you cannot fix.”
This sentiment reflects a broader frustration among entrepreneurs who face bureaucracy, poor infrastructure, and policy misalignment. The Global Entrepreneurship Monitor (GEM) 2026 report ranked South Africa’s entrepreneurial ecosystem seventh-lowest globally, with a score of just 3.9/10.
Imbali For Her: Women-Owned Enterprise Support
Launched in Kimberley earlier this year, the Imbali For Her program carries R897 million in blended finance—a mix of grants and concessional loans. It aims to reach 975 women-owned enterprises, offering up to R5 million per enterprise.
This initiative is particularly significant given the gender disparities in access to capital. By focusing on women entrepreneurs, the program seeks to unlock untapped potential in industries ranging from retail to technology. The program’s design ensures that funding is not just financial but also operational, with intermediaries providing guidance and support. This blended approach is expected to foster sustainability rather than short-term gains.
SME Youth Jobs Fund: Tackling Unemployment
South Africa’s youth unemployment rate stands at 47.4%, one of the highest globally. The SME Youth Jobs Fund, announced alongside Imbali For Her, allocates R150 million to support youth employment through SMEs. The fund will provide wage subsidies, training programs, and mentorship opportunities, aiming to integrate young people into the entrepreneurial ecosystem.
Voices from the Summit
Entrepreneurs at the summit shared stories of struggles with loan applications, delays in approvals, and lack of feedback. Many argued that the system favors established businesses over startups, leaving innovative ideas stranded.
Minister Ndabeni emphasized that the government is committed to reforming funding mechanisms, but acknowledged that progress has been slow. She urged financial institutions to adopt clearer communication practices and simplify application processes.
Broader Economic Context
South Africa’s economy has been stuck in a low-growth rut, with GDP growth averaging below 2% over the past five years. Entrepreneurship is seen as a critical lever to stimulate growth and job creation. However, without addressing funding barriers, the potential of SMEs remains underutilized.
Gender and Youth Empowerment
The dual launch of Imbali For Her and the SME Youth Jobs Fund reflects a strategic focus on inclusivity. Women and youth are often marginalized in the entrepreneurial space, facing systemic barriers that limit their participation. These initiatives aim to level the playing field, providing targeted support to groups that have historically been excluded.
Challenges Ahead
While the funding announcements were welcomed, experts caution that implementation will be key. Past initiatives have faltered due to poor oversight, corruption, and lack of accountability. Ensuring that funds reach intended beneficiaries will require robust monitoring mechanisms and transparent reporting.
Conclusion
The Black Business Summit underscored the urgent need to dismantle funding barriers that stifle entrepreneurship in South Africa. The launch of the R897 million Imbali For Her program and the R150 million SME Youth Jobs Fund represents a significant step toward inclusivity and empowerment. However, the success of these initiatives will depend on effective implementation, transparency, and sustained support.
Entrepreneurship remains South Africa’s best hope for economic renewal and job creation, but only if the ecosystem evolves to support those who need it most.
