The Eastern Cape Economic Development Fund (EDF) upholds the core mandate to position the province as a competitive investment destination through investment in initiatives, programmes, projects, and ventures that are developmental and commercially sound. This includes stimulating economic growth and equitable development, supporting entrepreneurship, and creating sustainable employment opportunities. The Fund operates to to facilitate economic growth, employment, and industrial development in the Eastern Cape. The Eastern Cape Economic Development Fund discharges its mandate through specific fund products, designed to respond to identified developmental and commercial objectives. These constituent instruments (sub-funds) have sub mandates that respond to the unique needs of targeted beneficiaries or industries.
Allocation of Funds
- To bolster fund sustainability, approximately 60% of fund resources will be invested in initiatives that offer defined financial returns on investment. The remaining 40% will be invested in initiatives that offer economic and developmental returns. Envisaged initiatives relating to the 40% fund allocation include interventions namely industry/value-chain activation, SMME development, and youth employment programmes.
- In pertinence to economic returns, the terms for the funding shall be informed by economic research; economic development intelligence; specific project potential, and targets. Commercial sustainability; job creation potential; youth empowerment; economic inclusiveness, and private sector participation are critical factors that will influence funding considerations.
Eastern Cape Economic Development Fund Products
- The Fund will discharge its mandate through specific fund products, created to respond to identified commercial and developmental objectives. These constituent instruments (sub-funds) will have sub mandates that respond to the needs of targeted beneficiaries or industries.
- At funding product-level, specific returns relating to financial and economic objectives will be stipulated – informed by each product’s funding objectives – while taking cognisance of the overarching fund objectives.
- The funding allocation for each fund product will be informed by a high-level resource allocation model, approved by the Fund Governance and Operational Framework Committee.
- A general architecture for the guidelines for these 10 funding instruments was developed in tandem with the overarching draft governance and administration framework.
- Close integration with the 15 objectives listed in the Governance of the EC EDF has been established on product-level, with each of the 10 funding product frameworks transposing and adapting some (or all) of those objectives.
For more information and assistance contact the DTC Team.
