Youth Challenge Fund (YCF) Application for 2023

We are pleased to announce that the Youth Challenge Fund (YCF) Application for 2023 is now open.

The Youth Challenge Fund (YCF) is a youth start-up support program developed in response to the growing importance of investing in the country’s youth as a precondition for accelerated inclusive growth and sustainable development.[mfn]“Youth Challenge Fund.” Gov.Za, http://www.dsbd.gov.za/sites/default/files/publications/youth-challenge-fund-brochure.pdf. Accessed 14 Apr. 2023.[/mfn] YCF aims to stimulate the establishment and growth of youth-owned businesses, promote digital skills, grow the economy, and foster job creation in response to youth unemployment, a major national challenge requiring urgent and coordinated action.

YOUTH CHALLENGE FUND (YCF) ELIGIBILITY

To qualify for YCF support, youth start-up businesses/enterprises must meet the following criteria:

1. Applicants should be between the ages of 18 to 35 years.
2. The business must be registered with CIPC and be prepared to register with SARS & UIF.
3. The enterprise must be 100% South African-owned.
4. The applicants should be adequately involved in the day-to-day operation and management of the business, with at least one or more members being full-time employees, especially the majority shareholder or essential personnel/applicant.
5. Applicants must be prepared to participate in Business Development Support and mentorship (pre and post).
6. The business idea should be commercially viable, sustainable, and feasible.

Exclusions The YCF will not consider the following transactions:

1. Funding towards a debt owed by the applicant with another lending institution.
2. Activities already funded by other government departments or parastatals.
3. Government and SOE officials.
4. Businesses involved in gambling, pyramid sales schemes, loan sharking, and operating illegal activities, as guided by credit policy and grant policies.
5. Applicants with a record of fraud and corruption.
6. Un-rehabilitated insolvent applicants.

YOUTH CHALLENGE FUND (YCF) APPLICATION PROCEDURE

To apply for the Youth Challenge Fund, follow these steps:

1. Download the application form from the official website.[mfn]“Youth Challenge Fund.” Gov.Za, http://www.dsbd.gov.za/programme/youth-challenge-fund. Accessed 14 Apr. 2023.[/mfn]
2. Complete the application form and gather all the required documentation.
3. Submit the completed application form and documentation to YCF@sefa.org.za.

After submission, the applications will be reviewed, and completed applications will be subjected to due diligence exercises by sefa for consideration. Follow-ups will be made with small enterprises whose funding applications are incomplete to submit the outstanding information. Small enterprises requiring non-financial support will be referred to Seda for further handling.

The YCF is a continuous program, and there are no specific application dates. However, it’s essential to stay updated with the latest information and announcements by visiting the official website or contacting the YCF Hotline on 012 748 9600 or email: info@dsbd.gov.za/helpline@sefa.org.za.