FAQs



Question 1: How is the Fund different from other government funds?
    The Jobs Fund is a once off limited duration grant. The grant is awarded on a competitive basis. The Jobs Fund will not seek repayment or a financial return on its investments, but will retain the right to reclaim funds that are not spent for the intended purpose or are misappropriated. It complements the different funding instruments made available by government while sharing a common objective – employment creation and economic growth. The Jobs Fund’s objective is to create sustainable employment and therefore differs from other projects that seek to create work opportunities. Given the nature of the type of jobs the Jobs Fund seeks to create, these jobs will be established over the life of the project starting from year two onwards.


Question 2: How much has been allocated?
    To date the Jobs Fund has a portfolio of 127 approved projects with a total allocation of R6.8 billion in grant funds. These projects will potentially leverage an additional R9.7 billion from our project partners.


Question 3: Who manages the fund?
    The National Treasury through its Government Technical Advisory Centre (GTAC).


Question 4: How is the funding structured?
    Matched funding is a key principle of the Fund and is based on a minimum 1:1 ratio. Matched funding may be comprised of own cash, loans and other funding sources. Funds recycled from loans will not be considered as matched funding.


Question 5: `It would appear that the Fund is not meant to help small businesses?
    The Jobs Fund supports the development of small businesses through its support to business and agriculture incubators. Through the Jobs Fund’s support these incubators leverage their existing capacity and scale up their services to small businesses. As of March 2016, twelve thousand and ninety-seven businesses have received support through Jobs Fund projects.


Question 6: Who can apply for funding?
    The Fund will accept competitive applications from the private sector, public sector and NGOs.


Question 7: How will applicants apply for funding?
    The Jobs Fund accepts applications during an open funding round and projects have to meet pre-determined criteria in order to be eligible for consideration. The Jobs Fund has a two-stage online application process; the Concept Note Application Stage and Business Case Application Stage. The application process begins when a call for proposals opens, and ends once a project has been approved by an independent Investment Committee.

    The two stage application process is intended to minimise any huge capital outlay by the applicant in preparing a detailed business plan without first having an opportunity to test that the concept will perform competitively against the Jobs Fund’s impact criteria.


Question 8: How long will it take to process an application?
    The assessment of applications starts on the day that the call for proposals closes. All applications are screened for eligibility and then competitively assessed against the Jobs Fund’s impact criteria. The applications are assessed by the Technical Evaluation Committee and the Investment Committee at both concept note and full business case stage. The process from submission to a final grant decision by the Investment Committee takes approximately nine to twelve months.


Question 9: What kind of projects will you fund?
    There are four funding windows:

    a) Enterprise Development: Projects should develop innovative, commercial approaches to long-term job creation in ways that combine profitability with high social impact. Enterprise Development projects should reduce risk, remove barriers to market access, improve or broaden supply chains or offer support for smaller enterprises.

    b) Infrastructure: Light infrastructure investment projects that are necessary to unlock job creation potential in a particular area.

    c) Support for Work-seekers: Projects seek to link active work-seekers, especially the youth, to formal sector opportunities and job placement. These projects should facilitate rapid access to employment and work-related training and place work-seekers into jobs.

    d) Institutional Capacity-building: Projects recognise that institutional weaknesses may in some cases inhibit the creation of jobs. These projects aim to improve operational efficiencies, remove barriers to doing business, catalyse innovation and thereby scale up the potential for job creation. The objective is to assist organisations that can influence demand of labour.


Question 10: R9 billion is a lot of money - how will Government monitor it and ensure that there is no misuse or mismanagement?
    Every successful applicant will contract with the Jobs Fund. Project targets and milestones will be clearly defined at the inception of the project. Dedicated project monitoring and evaluation capacity will be allocated per project and disbursements are linked to project targets being achieved. National Treasury reserves the right to reclaim funds if misused.


Question 11: Will there be bias towards supporting local companies or are proposals open to all companies?
    There will be bias towards companies that demonstrate potential for growth and job creation in South Africa. The Fund targets organisations with existing plans for expansion in South Africa that offer good prospects for sustainable job creation.


Question 12: Does the Fund focus on specific economic sectors?
    No the Fund does not focus on specific economic sectors however those sectors that have a high labour absorptive capacity will be considered favourably.


Question 13: Will there be any emphasis placed on regions or provinces in South Africa where unemployment is particularly high, or will applications from all areas be considered equally?
    The Fund will not limit investments to specific sectors or geographic regions. However, it will seek to support projects that contribute to addressing identified social and economic objectives. Projects will have to satisfy both eligibility and impact criteria. Eligibility criteria will be used to determine whether or not applicants conform to the core pre-requisites of the Fund. Impact criteria will measure the relative merits of each application in relation to value for money; sustainability; innovation; additionality. The goal remains the same: stimulating the economy and creating jobs.


Question 14: Why co-finance projects rather than provide loans?
    The Jobs Fund is distinct from existing development financing instruments in that it seeks to promote risk-taking and innovation so that established players can extend their core activities in ways which have a high social impact, specifically the creation of sustainable jobs.


Question 15: What are the latest results?
    To view the latest results, please visit the Home Page