Cape Town – Arts and Culture Minister Nathi Mthethwa says the department will establish a new fund that will help new entrants or debutants in the sector to finance their first projects.
Tabling the department’s Budget Vote, in Parliament, on Tuesday, the Minister said the Debut Fund will be formed through the Mzanzi Golden Economy (MGE).
The MGE was launched in 2011 to ensure economic growth and prosperity in the arts, culture and heritage sector.
“Through the MGE Open Call process, we will establish a Debut Fund that creates opportunities for young artists to publish their first book, produce their first play, cut their first album or host their first exhibition.
“The fund will make quarterly awards, to a maximum value of R300 000 providing opportunities to develop new local content and for that all important ‘break’ in their career,” he said.
Minister Mthethwa said the creative industries provide unprecedented opportunities for young people.
The 2013 creative industries mapping study found that over 30% of enterprises operating in the sector are youth owned, the Minister said.
“Linked to the funding will be a mentorship programme to make sure that these aspirant professionals have the best possible advice and guidance,” he said.
Government implementing a Venture Capital Fund
After announcing the establishment of a Venture Capital Fund last year, the Minister said the department was finally implementing it this year.
The Venture Capital Fund is an important source of financing for start-up and other companies that have a limited operating history and don't have access to capital markets.
Minister Mthethwa said the Venture Capital Fund will lead in the development of sustainable SMMEs within Arts, Culture and Heritage sector by providing finance.
He said the Venture Capital Fund requires a return of its investment and will charge much lesser interest rate of up to 10%.
“It is important that we use procurement and business models that will empower our previously disadvantaged groups and are brought to the centre of arts, culture and heritage which will include economic transformation and benefits.
“The Department of Arts and Culture sees building entrepreneurs as the vehicle to eradicate poverty, address the unemployment and improved service delivery,” he said.
The Minister said the department will be empowering SMMEs to accelerate their growth and ensure business support that will improve the success rate of new ventures.
He said the initiative will encourage entrepreneurs to start profitable businesses and create jobs and in turn expand the tax base and enable government to deliver services to the citizens.
Arts incubators extended to more provinces
The Minister said, meanwhile, that the department will in the financial year ahead expand incubators for artists to four new provinces.
In his Budget Vote, last year, the Minister announced the establishment of seven creative industries incubators in Free State, Mpumalanga, Gauteng, KwaZulu-Natal and the Western Cape.
Currently, there are over 400 young people engaged in these pilot programmes developing entrepreneurial skills and creating new productions in the fields of performing arts and photography.
“The scope of the programme will be further extended through an open call for additional incubators in Northern Cape, Eastern Cape, North West and Limpopo.
“Thus the 2016/2017 Budget Vote continues to set the agenda for a better life for all,” the Minister said. – SAnews.gov.za
