Kagiso Trust backs entrepreneurs as key to tackling unemployment

DEVELOPMENT agency Kagiso Trust says small businesses and entrepreneurs are central to addressing South Africa’s high unemployment and poverty levels, particularly as questions arise over the accuracy of the country’s official jobless statistics.

Marking its 40th anniversary, Kagiso Trust is highlighting the growing role of the informal economy and the need for greater investment in small, medium and micro enterprises (SMMEs). This comes ahead of International Micro, Small and Medium-sized Enterprises (MSMEs) Day, observed globally on 27 June.

“By providing employment, entrepreneurs and the SMMEs they run are building the human capital that leads to economic growth,” said Kagiso Trust CEO Mankodi Moitse.

While official data estimates that small businesses employ between 50% and 60% of the national workforce and contribute roughly 34% to GDP, the sector continues to face major hurdles. These include complex regulatory compliance, limited access to funding, and restricted market access.

This year’s MSMEs Day theme, “Connecting the entrepreneurs”, will be the focus of events hosted by the United Nations in New York. The UN said, “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.”

Moitse said Kagiso Trust is actively addressing these needs through targeted initiatives in the agriculture and property sectors.

“We have chosen to work in the agriculture and property sectors because both are significant contributors to the economy and lack sufficient transformation,” she said.

In agriculture, the Trust’s Tyala Impact Fund uses a farmer aggregator model to create collectives of small-scale farmers. These groups share resources, receive technical support, and are linked to markets. The fund is also developing an agricultural academy to train a new generation of black agripreneurs and promote youth participation in the sector.

In property, Kagiso Trust is working with the Trust for Urban Housing Finance (TUHF) and the University of Cape Town through the Property Entrepreneur Accelerator, PROPreneurX.

“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,” Moitse said. “We also offer a credit facility to support entrepreneurs wanting to enter the residential rental property market.”

The Trust’s efforts come as debate continues over whether the scale of South Africa’s informal economy renders unemployment statistics unreliable. Regardless of the numbers, Moitse said the focus should be on long-term, people-centred development.

“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.”

Founded in 1985, Kagiso Trust has invested more than R2 billion in development and supported over 1,800 programmes focused on education, institutional capacity building and socio-economic development.