Controversial funding issue threatens participation of South African athletes in World Championships

The participation of athletes from South Africa in the World Youth Athletics Championships under 20 is at risk due to a funding dispute between Athletics South Africa (ASA) and Sports Minister Gethon Mackenzie.

The conflict arose after some athletes' families had to cover the travel costs for the World Youth Athletics Championships under 20, which is taking place in Oregon, USA.

ASA claims it never received its annual government grant, while Sports Minister Gethon Mackenzie states that he personally provided private funding for the team's trip to the USA.

The dispute escalated when ASA reported that athletes' families were forced to contribute to covering travel expenses because the federation had to seek alternative sources of funds before the championship in Eugene, Oregon.

Mackenzie rejected claims that delays by the department jeopardized the team's participation, stating that he intervened after discovering the lack of funds to send the U20 squad to Oregon. He emphasized: 'The young people under twenty will go, I will take care of it.'

According to Mackenzie, he approached private companies and managed to raise 4 million rand to cover the deficit, noting that he did this after learning about the lack of money to send the team. He stated: 'I called companies. I raised four million rand for the under twenty. Last time I trusted them, but there was no money for them.'

However, ASA refuted Mackenzie's version, insisting that the federation is still awaiting funding that, according to it, should have been transferred by the Department of Sport, Arts and Culture several weeks ago.

Current president John Matan confirmed that ASA has not received its annual grant from the Department of Sport, Arts and Culture, despite expecting these funds by the end of June. He stated: 'As Athletics South Africa, we can confirm that we have not received any funding.'

Matan clarified that the delay forced the federation to seek other funding sources instead of depriving young athletes of the opportunity to represent South Africa on the international stage. He added that ASA covered accommodation costs, while athletes and their families contributed to airfare, and support was also received from private donors.

This dispute also sparked political criticism. The ActionSA party accused the Department of Sport, Arts and Culture of being unable to support the next generation of South African athletes. ActionSA Member of Parliament Darlene James stated that the grant, which was supposed to be paid by the end of June, never arrived, forcing athletes selected for the World Youth Athletics Championships under 20 to pay for their tickets themselves.

James noted: 'Millions of young South Africans dream of representing their country internationally, and now those who were selected face the reality of being unable to participate due to a lack of financial support from the same Department that spent 31 million on the Football World Cup.'

She also questioned the department's spending priorities, pointing out that Mackenzie recently defended the department's expenditure of 31 million on the South African delegation and program for the 2026 Football World Cup, while athletes representing the country at the World Youth Athletics Championships under 20 were forced to rely on family support to cover travel costs.

James added: 'This is not the first time Minister Mackenzie has caused outrage with his poor spending priorities and penchant for luxurious travel habits. ActionSA has constantly questioned the Minister about his expenditures, which amount to tens of millions since taking office in 2024.'

In conclusion, James stated that ActionSA will engage with both Athletics South Africa and the Department of Sport, Arts and Culture to ensure that the athletes receive the necessary support to represent South Africa at the championships.

iol.co.zaJuly 30, 07:00

Common Financing Mistakes of Small and Medium Enterprises Under Financial Pressure

According to the latest SME Confidence Index from Business Partners Limited, nine out of ten small and medium-sized enterprises in South Africa have faced operational pressure due to the recent rise in fuel prices, highlighting short-term financial difficulties in this sector.

Furthermore, the survey indicates a growing number of companies that are forced to shift focus from expansion to ensuring short-term survival. For business owners, this reaction is understandable: when costs suddenly increase, cash flow shrinks, or sales come under pressure, the primary task becomes stabilizing the business as quickly as possible.

Risks of Financial Decision Making

Although securing short-term financing is often critical and can provide necessary support, the urgency of solving short-term financial problems sometimes prompts SMEs to make financing decisions that unintentionally create more serious future problems.

Three Common Mistakes

Although every company's situation is unique, there are three typical financing mistakes to avoid. Firstly, it is using an inappropriate type of financing to solve a specific problem.

Secondly, it is taking on long-term obligations to cover a temporary cash shortfall, which can burden the business with unnecessary expenses for years to come. Before seeking funding, business owners must clearly determine whether the difficulty relates to working capital, equipment, expansion, or a temporary lack of cash. Financing should support a specific need, not just provide access to extra money.

Business Model Issues

The third mistake is taking on debt before addressing core operational problems. Financing can provide a reprieve, but it cannot fix an unsustainable business model. When financial pressure arises, many SMEs focus solely on attracting new capital without first examining the factors causing the problem. Increased costs, reduced margins, inefficient inventory management, slow payments from debtors, or pricing issues can cause a cash deficit that financing alone will not resolve.

Additional funds may temporarily alleviate symptoms, but if the root causes are not addressed, the businesses will face the same problem again in a few months, but with higher repayment obligations.

Strategic Approach to Fundraising

Moreover, one of the biggest mistakes made by SMEs is waiting too long when seeking financing. Paradoxically, many entrepreneurs view financing as a last resort and only approach lenders after exhausting reserves and reaching a critical situation. At this stage, the business may have fewer financing options, and management has to make hasty decisions under intense pressure.

The strongest funding applications are usually submitted when the company still has enough time to plan, evaluate different solutions, and demonstrate a clear action plan. Therefore, access to finance should be part of a broader sustainability strategy, not just an emergency measure. In conditions where factors such as fuel costs, inflationary pressure, and general economic uncertainty continue to influence, short-term financial pressure is becoming an increasingly common reality for many business owners. The key lies in adopting a balanced and strategic approach to fundraising, carefully assessing the business's needs, its ability to repay, and its growth objectives. With alignment to a clear goal and sound financial planning, financing serves as a valuable tool to support sustainable business development.