Absa has launched a dedicated entrepreneurship fund to help young South Africans build businesses that create jobs and drive inclusive economic growth, as Africa’s largest economies increasingly look to startups and small businesses to tackle persistently high youth unemployment.
The Absa Youth Entrepreneurship Fund (Ayef), unveiled under the bank’s “All In This Youth Month” campaign, will provide grant-based funding, mentorship, business development support and market access to young entrepreneurs, removing access to capital as one of the biggest barriers facing early-stage businesses.
Unlike conventional startup financing, the programme will offer conditional grant funding that requires no repayment and takes no equity stake, allowing entrepreneurs to retain full ownership of their businesses while receiving financial and technical support.
The initiative forms part of Absa’s broader strategy to expand youth economic participation. Over the past five years, the bank said it has invested more than R639 million in community development programmes that have reached 1.7 million people.
The new fund is designed to address structural challenges that continue to prevent many young South Africans from turning business ideas into commercially viable enterprises, including limited access to finance, mentorship, professional networks and markets.
“South Africa’s youth have always led from the front in shaping our nation’s future. But today, the greatest barrier is not ambition, it is access,” said Sydney Mbhele, Group Chief Marketing and Corporate Affairs Officer at Absa.
“With the launch of the Absa Youth Entrepreneurship Fund, we are planting seeds of change by providing young entrepreneurs with the capital and support they need to build businesses that create jobs and drive inclusive economic growth. This is not just about funding, it is about building an ecosystem where young people can succeed and, in turn, uplift others.”
The programme will support entrepreneurs at different stages of business development from founders with early-stage ideas to enterprises ready to scale.
Participants will receive:
- Phased grant funding linked to business milestones
- Tailored mentorship and strategic business support
- Financial management and governance guidance
- Market access and customer development opportunities
The programme will run over 12 months, supporting entrepreneurs across South Africa as they develop businesses capable of creating employment and contributing to local economic development.
Ayef is being delivered in partnership with the Tshiamo Foundation and incorporates a voluntary “pay it forward” model under which entrepreneurs who complete the programme are encouraged to mentor future participants, creating a self-sustaining entrepreneurial ecosystem.
The fund was officially launched during a Youth Month event at Absa Towers West, where entrepreneurs, policymakers, business leaders and ecosystem partners gathered to strengthen collaboration around youth enterprise development.
The event served both as the official launch of the fund and as a platform to connect aspiring entrepreneurs with investors, support organisations and business networks.
Absa said the initiative reflects a growing recognition that South Africa’s young people are increasingly creating opportunities for themselves rather than waiting for formal employment.
Applications for the Absa Youth Entrepreneurship Fund will open in August 2026, with further information to be released through the bank’s digital platforms. Early enquiries can be directed to absayef@tshiamoimpact.com.
A growing focus on entrepreneurship
The launch comes as South Africa continues to face one of the world’s highest youth unemployment rates, prompting both public and private sector institutions to increase investment in entrepreneurship as a driver of job creation.
Across Africa, banks, development finance institutions and venture capital firms are expanding support for startups through grants, accelerators and blended finance programmes, reflecting growing confidence that small and medium-sized enterprises will play a central role in the continent’s long-term economic transformation.
Absa’s latest initiative marks a significant shift from traditional corporate social investment to ecosystem-building, which integrates finance, mentorship, governance support, and market access to enhance startup survival rates and promote sustainable economic growth.
