Young entrepreneurs with viable business ideas are being encouraged to tap into the E40 million available through the Youth Enterprise Revolving Fund (YERF) as the Fund seeks to turn youth businesses into sustainable enterprises.
The funding is aimed at supporting young people to start businesses and helping existing enterprises expand, with agriculture among the sectors already demonstrating the potential of youth financing.
One such example is Malu’s Poultry at Hhukwini, founded by 28-year-old Malungelo Simelane, whose poultry enterprise has grown from an initial 500 broilers to a production capacity of about 6 400 birds per cycle. 
The Youth Fund Board of Directors recently visited the business to assess how youth financing is translating into enterprises on the ground.
Simelane started the business in 2023 with an initial E50 000 injection from the Youth Fund. He later received a further E60 000 in funding, enabling him to expand the operation to three poultry houses.
“I started with 500 broilers and, through the funding and reinvesting back into the business, I have managed to grow to 6 400 birds per cycle. My next target is to reach 10 000 broilers,” Simelane said.
The initiative forms part of the E40 million currently available through YERF to support young entrepreneurs with viable business ideas and help existing businesses expand.
Simelane said his long-term ambition was to expand the farm’s infrastructure and venture into poultry processing.
“We do not want to stop producing chickens. We want to increase production, move into processing and reach bigger markets,” he said.
The farmer said understanding his market had also been important to the growth of the enterprise.
“Most of our chickens are bought in bulk by women traders, who take them to different towns to sell. This has given us a reliable market while also helping other people make a living through trading,” Simelane said.
He said 3 200 birds could generate about E192 000 in gross revenue, while 6 400 broilers could generate approximately E380 000 per cycle.
However, Simelane stressed that farmers needed to understand their costs before expanding.
“You have to keep proper records and know where your money is going. Feed, chicks, medication, electricity, labour and transport all have to be paid for, so the gross income is not the same as profit,” he said.
He said young entrepreneurs should not be discouraged by starting small.
“My advice to young people is to start with what they have, understand their market, maintain good hygiene, control costs and reinvest in the business. Growth takes time, but if you are disciplined, you can build something bigger,” Simelane said.
The experience at Malu’s Poultry highlights the potential of youth financing when capital is combined with proper planning, market access, cost control and reinvestment.
With E40 million currently available through YERF, young entrepreneurs have an opportunity to turn viable ideas into productive enterprises while helping existing businesses increase their capacity, create employment and move into value addition.
