THE MARGINALISED COMMUNITY FUND (MCF)

The Marginalised Community Fund (MCF) aims to help transform local economies in marginalised areas of Limpopo by supporting economic development initiatives that benefit poor communities. Priorities of the MCF are to support initiatives which:

* Improve the functioning of the economy in the defined area;
* Improve the linkage between economic actions in the area and the formal economy;
* Mobilise community assets and bring them into productive use;
* Create jobs through enterprise expansion and retention;
* Benefit, and have an impact on, the community as a whole; and
* Promote co-operation and partnerships between government, business and communities.

The MCF can be used in one of two ways: to undertake a Marginalised Community Action Plan (MCAP); or to implement a Marginalised Community Action Plan (IMCAP).

Marginalised Community Action Plan (MCAP)

A MCAP is a plan of action which will indicate ways in which to improve the economic situation of a community in a given area. It may result in an economic development plan, business plan, financial plan, project feasibility study, sector competitiveness plan, or marketing plan. Typical actions undertaken under a MCAP may involve but are not limited to:

* Workshops, consulting, training and participation exercises to mobilise community stakeholders and collect information around doing a MCAP;
* Situation assessment and socio-economic analysis of an area or community;
* Identification of strategic priorities and project interventions which can contribute to greater sustainable economic development;
* Plans of action to improve the use of community assets and resources to transform the local economy;
* Determine feasibility of project interventions and identification of benefits to the wider community of selected projects;
* Create co-ordination structures and forums to develop local ownership and ensure distribution of benefits;
* Success factors and associated performance measures that need to be reached to ensure linking of the "two economies" locally; and
* Identification of all sources of funding to implement the action plan.

Actions within the plan should be co-ordinated as a coherent whole to bring benefit to the whole community.

Implementation of a Marginalised Community Action Plan (IMCAP):

If the steps above have been already identified and documentation is available, applications can be made for implementing a MCAP. Some examples of the scope of projects which an IMCAP can cover
include initiatives to:

* Create jobs and reduce poverty through enterprise expansion and retention;
* Improve community economic infrastructure;
* Improve technical and business skills at the community level;
* Mobilise and bring community assets into productive use;
* Upgrade micro and survivalist enterprises in communities and/or link them to value chains;
* Improve security of doing business against crime;
* Improve access to markets, promote local markets and trading opportunities and increase demand for local goods and services;
* Improve information flows; and
* Reduce the leakage of money from the area.

For both the MCAP and IMCAP the geographic area of the community must be clearly defined but need not correspond to an administrative area or subdivision of Limpopo.

Budget and Financial Allocations

The total overall funds available under the MCF are estimated at R23,900,000. The allocations between the two different interventions are as follows:

* Marginalised Community Action Plan (MCAP).
There is an indicative allocation of R6 million to contribute to funding of MCAPs up to a maximum of 80% of the total project costs. In terms of amounts, the MCF will finance a minimum of R350 000 and a maximum of R1 million for MCAP projects.
* Implementation of Marginalised Community Action Plan (IMCAP).
There is an indicative allocation of R18 900 000 to contribute to funding of IMCAPs up to a maximum of 70% of the total project costs. In terms of amounts, the MCF will finance a minimum of R1,5 million and a maximum of R4 million for IMCAP projects.

What costs are eligible for support under the MCF?

Eligible costs which can be covered by these grant funds include:

* Technical assistance;
* Training costs and study tours;
* Knowledge management, IT and research;
* Common capital expenditure; and
* Project management costs.

Who can apply?

Any legally registered organisation can apply for grant funding as long as the project brings direct benefits to Limpopo. The applicant must be directly responsible for the preparation and management of a project and cannot act as an intermediary.

Last Updated : December 2007

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