Mthatha entrepreneurs will have the opportunity to beef up their business skills after the OR Tambo municipality received R5-million from the Development Bank of South Africa.

Municipality spokesman Ayabulela Ngoqo said the money was being donated to the Vulindlela Business Development Project.

"The project was initiated last year to give small micro and medium enterprises skills and access to funding, especially in rural areas."

He said there was a lot of potential in rural areas which most people were not aware of.

"There are many spaza shop owners and small commercial farmers who do not know how to expand their businesses or improve their skills in order for them to make a profit."

The R5-million would be used to build a business centre where people would get advice and funding to start a business or grow an existing one.

The centre was a joint initiative by OR Tambo, Standard Bank and DBSA, Ngoqo said.

"Umsobomvu Youth Fund will also have offices there. Our aim was to attract the youth to start their own businesses, hence this centre will be in town where it was easily accessible.

"We also have a satellite and mobile information centre that will service the people in rural areas."

Ngoqo said all funds would be handled by DBSA and be spent over three years.

"We will not manage it, only put in proposals."

Eastern Province Herald