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The Department of Employment and Labour through Unemployment Insurance Fund (UIF) and Department of Trade, Industry and Competition (DTIC) via its finance institution the National Employment Fund (NEF) today (25 September 2026) officially unveiled a R1-billion to provide seed capital to develop, finance black business and promote job creation.

“We are investing in the people who build businesses, take risks, serve customers and create work in our communities. We are also recognising a central lesson of South Africa's development strategy: if we want employment at scale, we must enable small businesses to start, survive and grow," Employment and Labour Minister, Nomakhosazana Meth said in Johannesburg today.

Meth said the significance of this partnership lies in what two institutions can achieve together, “The UIF brings its employment and labour activation mandate. The NEF brings its enterprise finance and development capability. By joining those strengths, they can support businesses with the potential to grow and employ more people".

The Unemployment Insurance Fund and National Empowerment Fund partnership aimed at expanding access to finance for qualifying black-owned and black-managed businesses, supporting enterprise sustainability and growth, and contributing to the creation and retention of jobs.

In the partnership UIF will contribute R500 million, with an equal R500 million contribution from the NEF.

The Unemployment Insurance Fund is an entity of the Department of Employment and Labour that provides short-term relief to workers when they become unemployed or are unable to work because of maternity, adoption and parental leave, or illness; and provides relief to the dependants of a deceased contributor. While the National Empowerment Fund is an organisation that promotes and facilitate black economic participation by providing financial and non-financial support to black-owned and managed businesses.

The UIF-NEF partnership provides an opportunity to combine public resources with development-finance expertise to support qualifying enterprises with growth potential. The partnership is aligned to the UIF's broader Labour Activation Programmes framework, which places emphasis on interventions and partnerships that contribute to employment creation, training, entrepreneurship and economic participation.

“I also set out the repositioning of the Labour Activation Programme around three connected pillars: skills shaped by real demand; workplace experience and placements; and enterprise support that enables More small, medium and micro enterprises (MSMEs) to create work. The programme is intended to recruit 200,000 unemployed people in 2026/27, as part of a commitment to reach 605,000 beneficiaries over the medium term," Meth said.

Labour Activation Programmes refers to deliberate interventions designed to integrate or re-integrate the unemployed into the labour market. Some of the LAP programmes that have been undertaken by the department includes the training of the unemployed, enterprise development, training layoffs schemes and turnaround solutions.

The objective of LAP is to enhance employability, enable entrepreneurship and preserve jobs.

Launching the Fund at Langhams Estate under the theme: “Investing in Enterprises. Advancing Employment. Driving Transformation," Meth said, “The real test begins now: when an enterprise secures support, wins customers, expands production and employs more South Africans. We must follow that journey and measure the result. The economy needs faster growth. Established firms need to invest and expand. More small, medium and micro enterprises (MSMEs) need to become sustainable employers. And more people need a practical route into the skills, experience and opportunities that a growing economy requires".

Deputy Minister of Trade, Industry and Competition Zuko Godlimpi said the Fund's launch was a demonstration of a practical partnership that seeks to improve coordination among government institutions. Godlimpi said the scale of unemployment (currently perched at 33,6 percent) requires greater coordination among institutions responsible for job creation, enterprise development and infrastructure development.

“The joint UIF and NEF Fund will bridge the gap between enterprise development and skills training," further emphasising that the Fund will promote enterprise support, finance, mentorship and provide technical support. He said the two institutions will be pulling together resources and capabilities, “the UIF brings with it job creation capability and NEF bring enterprise development capability".

Godlimpi said the Fund will be measured by the extent to which it not only improved the bottom line, but also the degree to which it managed to promote the creation of jobs, “we want to see growth of enterprises that pull out many outs of unemployment." He said the objective was also to not only develop enterprises but also build sustainable enterprises.

For media inquiries, please contact:

Teboho Thejane

Departmental Spokesperson

082 697 0694/ teboho.thejane@labour.gov.za

-ENDS-

Issued by: Department of Employment and Labour

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