THOHOYANDOU – The launching of Vhembe Economic Development Agency will help in empowering many of the needy people in the Vhembe district of Limpopo.

This Local Economic Development Agency (LEDA) programme was launched on Friday in the Senate Chambers of the University of Venda for Science and Technology.

The Italian government, through the United Nations Development Programme funds the project, which is the implementing organisation. The International Labour Organisation participates as an associated agency.

The programme's governmental counterpart at national level is the department of Trade and Industry and at provincial level is the Department of Finance and Economic Development. The Department of Finance and Economic Development funded the project with R3 million, while the United Nation's Office for Project Services has given the project R4m.

Mr John Morales Nieto, who is the chief Technical Advisor for the UNOPS-SEHD programme said the money is going to help in the funds of the local enterprise. The project also offers business training and counselling.

Neito said the project is intended to empower women and youth so that they can get into sustainable business.

The project manager, Marcus Mukumela, said they would use the money to finance people.

"We are going to loan this money to the people so that they can start their business. Each person will get a loan of between R500 and R100 000," he said. He also added that they are going to look at the sustainability of the project before they provide a loan to people who qualify.

Those who will not succeed will be advised to rectify their proposal and re-send it so that they can qualify.

This office is the fourth one in the country as other ones were opened in Mpumalanga, Northern Cape and Eastern Cape. Each office has been opened in a chosen district per province following a research done by UN in 1998.

The Vhembe District Municipality was chosen because of its potential in tourism and agriculture where jobs can be created for the people. It emerged from the research that natural resources are not utilised in the area. MEC Thabo Mufamadi also attended the function. UNDP also donated a 4x4 Honda latest model to the project. The car will help with the transportation needs of the project.