Sibusiso Simphiwe Services is one of the informal enterprises supported by the Informal Economy Support Programme. The business sells fruits and vegetables to street vendors and the community in the Durban central business district. It is one of 114 businesses supported by the programme.

SINCE its inception in 2013, the Informal Economy Support Programme (IESP) has been a pioneering force in aiding micro and informal enterprises (MIEs) in eThekwini. Spearheaded by the City’s Economic Development Unit, the IESP stands as the first initiative of its kind in South Africa, designed to reach enterprises through innovative and cost-effective methods. The programme aims to unlock enterprise growth and job creation by offering customised business support services across various productive sectors.

The IESP was established to address the critical need for support among MIEs, which play a vital role in tackling joblessness and driving economic growth. Funded by the Jobs Fund and eThekwini Municipality, with additional contributions from the Department of Small Business Development and the Industrial Development Corporation of South Africa, the IESP has completed two successful phases and is currently in its third phase, running from 2022 to 2025. Building on previous successes, phase 3 of the IESP has made remarkable progress.

By November 2024, the programme is set to exceed its key targets. So far, 114 enterprises have been signed up and supported, with 700 new permanent jobs created by 83 of these enterprises with more than 68 percent of these jobs filled by youth, and an equal mix of men and women benefiting. The majority of these new jobs are long-term and full-time, reflecting the programme’s focus on sustainable employment.

Additionally, 134 micro-grants have been awarded to 79 high-performing MIEs, and 332 individuals have participated in 63 training events. These training sessions cover essential skills such as bookkeeping, sales, marketing, business operations, customer service, financial management, and sector-specific areas like digital marketing and hydroponic farming. The programme selects MIEs based on their potential for growth and job creation, with a particular focus on established enterprises with experienced entrepreneurs and those with more than six workers at the time of enrolment. Customised support has led to improved business performance for 102 enterprises, with enhancements in financial performance, market access, skills, record-keeping, access to fi nance, and more. The impact of 134 micro-grants awarded to 79 MIEs has been significant, with a total of R4.2 million disbursed, contributing positively to business growth. The IESP’s continued success underscores eThekwini Municipality’s commitment to fostering a vibrant and inclusive economy by supporting the growth of micro and informal enterprises.