On 13 May the Government of Flanders awarded a grant to the South African Department of Economic Development and the International Labour Organisation to develop a policy framework to support the social economy. The Government of Flanders donates 1.3 million euros to this project.
The social economy is a sector in full development in South Africa. It is an economy that offers solutions to social challenges through social entrepreneurship and innovation and aims for an inclusive, sustainable and social society. In a country with a high unemployment rate, major challenges in terms of poverty and inequality and low enterprise level, the need to develop the economy and economic growth is high. The South African Department of Economic Development along with the International Labour Organization will develop a national policy framework for the social economy.
The duration of project is three years (2016-2019). Flanders is subsidizing this project through two grants. 411,665 euro goes to the Department of Economic Development and 912,702 euro to the International Labour Organisation. These grants fit in the country strategy between Flanders and South Africa for the period 2012-2016. In the strategy the South African government agreed to focus on job creation through the development of small businesses and boosting social economic growth.