Youth funding
Youth Challenge Fund
Funding and development support for South African youth-owned start-ups and growing enterprises, implemented by SEDFA with national and EU programme partners.
Opens the Old SMME Portal sign-in page.
Overview
About the fund
Targeting entrepreneurs aged between 18 to 35, the programme aims to foster job creation and economic participation through direct financial support. The YCF provides a mix of loan and grant funding - up to R2 million for start-ups and R15 million for growth enterprises - through two main channels: Technology & Innovation (Red Channel) and Other Products & Services (Blue Channel).
The fund offers blended finance solutions, with varying loan supported by a grant tailored to the stage and focus of the enterprise. Successful applicants also gain access to essential business development and mentorship support to ensure sustainability.
Eligibility
Eligibility criteria
In line with National Youth Policy, the YCF will be providing support to youth businesses/enterprises who meet the following criteria:
- Are between the age of 18 to 35 years
- Registered with CIPC and prepared to register with SARS & UIF
- 100% South African owned
- Adequately involved in the day-to-day operation and management of the business, with at least one member being a full-time employee
- Prepared to participate in Business Development Support and mentorship (pre and post)
- Commercially viable, sustainable and feasible business idea
Exclusions
Exclusions
The following transactions will NOT be considered:
- Funding towards a debt owed by the applicant with another lending institution (existing debt)
- Activities that have already been funded by other government departments or parastatals (double-dipping)
- Government and SOE officials are excluded
- Businesses in gambling, pyramid sales schemes, loan sharking or illegal activities
- Applicants with a record of fraud and corruption
- Where the owner/applicant is an un-rehabilitated insolvent