MPUMALANGA – The Department of Economic Development and Tourism, in collaboration with the National Youth Development Agency (NYDA), on Tuesday, March 18, 2025, awarded youth-owned tourism businesses a cash injection to the tune of R3.6 million. The Small Enterprise Development and Finance Agency (SEDFA) also joined the initiative, pledging to support the young entrepreneurs with all the necessary business development assistance.
A total of 24 tourism businesses from across the three Mpumalanga districts were selected to receive investment following a rigorous selection process. The application period, which ran from October 1 to November 30, 2024, received over 120 applications, with a key focus on businesses from rural areas. During the launch in September 2024, MEC Makhosazane Masilela emphasised that no one should be left out.
The awarding of funds followed a pitching session held on the same day, where the 24 finalists showcased their innovative business ideas to a panel of judges. In its first year, the fund focused solely on tourism businesses that were already in operation. Later in the evening, three businesses were announced as top winners for presenting the most innovative ideas aimed at breaking into an industry largely dominated by big players, mostly white-owned.
Providing a progress report, Jabulile Mkhwanazi, in her capacity as Chairperson of the Fund Steering Committee, highlighted that the fund aims to empower young entrepreneurs in the tourism sector by providing financial assistance and resources to help them grow and expand their businesses. The goal is to stimulate innovation, create jobs, and promote sustainable business growth, particularly in rural areas.
“Our main objective was to integrate young people into this lucrative sector, where they currently have limited representation,” said Mkhwanazi.
She added that the initiative also seeks to profile the tourism sector by showcasing opportunities within the value chain while contributing to its overall development. Mkhwanazi further revealed that, through this financial injection, a total of 108 jobs will be sustained.
Delivering a message of support, Mpumalanga Tourism and Parks Agency (MTPA) Board Chairperson Victor Mashego committed to assisting ungraded establishments through the Tourism Grading Council and providing exposure by including some beneficiaries in the annual Tourism Indaba.
Representing the NYDA, Thulisa Ndlela urged the government to introduce legislative policies ensuring that a portion of tourism spending is allocated to youth-owned businesses, thereby securing their sustainability and guaranteed participation in the industry.
In her keynote address, MEC Masilela stated that the fund was introduced as a measure to address high youth unemployment, recognising the low participation of young entrepreneurs in the tourism sector. She further noted that the fund addresses three major challenges faced by youth entrepreneurs namely; Inadequate start-up funding, Limited mentorship to enable networking, and market access, and lack of working capital for business development.
“Our ultimate objective is for this fund to position itself as the largest and most comprehensive initiative in South Africa’s democratic history,” Masilela stated.
She emphasised that the bigger picture is to stimulate innovation, create jobs, and promote sustainable businesses, particularly in rural areas. Masilela concluded by congratulating the winners and reaffirming that Mpumalanga is ready to host the G20 Tourism Meeting in September 2025.
“This will be a great opportunity for our province to showcase its tourism offerings and boost our economy,” she added.
Jubilation filled the venue later in the evening as the winners and the amounts they received were announced, with some receiving nearly R400,000 for their businesses. This initiative directly benefits Mpumalanga’s youth population, which accounts for 1.7 million people—37.7% of the province’s total population.
