UIF to Sell Bonds

April 16 - In a move that will see the collaboration of two major government entities, the Unemployment Insurance Fund (UIF) announced that it would be launching a R2 billion investment scheme together with the Industrial Development Corporation.

The scheme, which will see the joint venture sell bonds, has the objective of creating and sustaining jobs in South Africa.

The bond will be subscribed by the UIF, and will be sourced at a fixed rate of interest.

"This unique collaboration between government entities underlines the IDC's partnership approach fulfilling its mandate as an enabler of government's developmental agenda - promoting co-ordination of economic activities in pursuit of job creation and balanced, shared and sustainable economic growth," noted the Chief Executive Officer of the IDC, Geoffrey Qhena.

Benefits would passed onto South African businesses that comply with the UIF's investment criteria.

In addition, businesses will be required to comply with the Industrial Development Corporations's funding requirements.

Qhena noted that the "loan issuance and the objectives thereof are in line with the IDC's long standing mandate of facilitating development and entrepeneurship in South Africa through the Industrial Policy Action Plan."

The plan could be of particular benefit to start up companies, as well as those companies seeking to "facilitate working capital funded expansions."

Due to the partnership between the two entities, ultimate financial conditions have been enabled.