R12m on the table as Absa targets young entrepreneurs

Access to funding remains one of the key hurdles for small businesses trying to get off the ground and grow. For young entrepreneurs, the challenge is compounded by barriers to markets, mentorship and business networks.

Absa is looking to address some of these obstacles with a R12 million fund offering grants and practical support to young business owners.

This is through the Absa Youth Entrepreneurship Fund (AYEF), which is aimed at black-owned SMEs led by entrepreneurs aged 18 to 35. Applications close on 31 October 2026.

Absa says unlike traditional funding programmes, AYEF introduces a strong ecosystem-focused approach that combines financial support with capability building.

Supported by the Absa CSI Trust and delivered in partnership with Tshiamo Foundation, the fund will provide grants alongside mentorship, business development and leadership support, market access opportunities and links to broader entrepreneurship networks.

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The foundation will be responsible for overseeing the application process, entrepreneur selection, programme implementation, mentorship, capability-building interventions and ongoing business support.

“The lay of the land is such that there are great ideas but financially, to get them out of the starting block is difficult,” said Setlogane Manchidi, managing executive of corporate citizenship at Absa Group.

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While Manchidi told the Mzansi Business Podcast that funding is an integral part of the journey, he said South African SMEs need more than just a one-time cheque.

“Access to markets is one of the most difficult pieces for an entrepreneur. The best form of business is a business that funds itself and a business that funds itself must have access to markets.”

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Beyond funding, the programme includes a voluntary “pay-it-forward” model that encourages successful participants to share their knowledge, skills and experience with future generations of entrepreneurs.

“We must create an environment where South African entrepreneurs can learn through trial and error. No experience is ever a wasted experience,” Manchidi added.

There is no condition for recipients to pay back the funds granted.

Setlogane Manchidi, managing executive for Corporate Citizenship at Absa Group. Image: Supplied

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Absa says the fund is also intended to help young South Africans move from seeking jobs to creating them, as youth unemployment continues to constrain economic participation.

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With less than a week before the closing date, the bank has already received more than 4 500 applications from SMEs across the country.

“This excites me, because it goes to affirmative action and confirm[s] that in South Africa there’s immense potential. But sadly there is very little by way of opportunity that matches the potential.”

Manchidi expects applications to surpass the 10 000 mark – a measure of success for the pilot.

“Here may be the development of a blueprint [of] something that may be bigger. And not just because Absa is at it but because Absa, alongside others, [is] at it.

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“The fact that we have not declared youth unemployment as a national emergency is something that baffles me and I think it’s through these initiatives that we must say that the high unemployment rate keeps us awake at night and we need to facilitate ways to include young people.”

Programme timeline

Saturday 31 October 2026: Applications close at 23:59.
November and December 2026: Screening, assessment, verification.
January and February 2027: Cohort confirmed, contracting and onboarding.

Eligible entrepreneurs can apply here.

You can also listen to this podcast on iono.fm here.

* You can listen to the full podcast above or download it from iono, Spotify or Apple Podcasts. 

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