List of Small Business Grants Funding South Africa 2022

Filed in Grants by on May 4, 2022 0 Comments
List of Small Business Grants Funding South Africa

Want to start a small business but don’t have enough funds? This page contains information on small business grants and funding programs in South Africa that you can apply for.

1. DTI funding

The Department of Trade and Industry (DTI) and its subsidiary agencies are involved in promoting economic development, black economic empowerment, implementing commercial law, promoting and regulating international trade, and consumer protection.

The DTI funding for small businesses is currently obtainable from the following four funds:

  • SEDA Technology Programme – the Seda Technology Programme (STP) is responsible for providing both financial and non-financial technology transfer, business incubation, and quality support services for small enterprises.
  • Agro-Processing Support Scheme (APSS) – Launched in 2017, the Agro-Processing Support Scheme (APSS) incentive scheme is an R1-billion cost-sharing grant fund designed to boost investments in new and existing agro-processing projects.
  • Support Programme for Industrial Innovation (SPII) – is designed to promote technology development in South Africa’s industry, through the provision of financial assistance for the development of innovative products and/or processes.
  • The Aquaculture Development and Enhancement Programme (ADEP) – is a cost-sharing incentive programme for projects in primary, secondary, and ancillary aquaculture activities.
  • Export Marketing and Investment Assistance Scheme (EMIA) – aims to develop export markets for South African products and services and to recruit new foreign direct investment into the country.
  • The Sector Specific Assistance Scheme (SSAS) – a reimbursable cost-sharing grant that will pay for 80% of the costs incurred by (non-profit) export councils, joint action groups, and industry associations to provide support to companies to grow the export market for South African goods.

CHECK: DTI Funding Application Forms 2022

2. NEF funding

NEF is a project enacted by the government to aid in supporting and boosting the participation of the public in business and entrepreneurship. For this to happen, the NEF funding system helps black entrepreneurs to acquire funding for their activities. The goal of the NEF is to assist the black youth, men and women, communities, and businesses to be financially stable in their businesses.

There are several types of NEF funding. One is the uMnotho Fund, which has sub-divisions in finance such as the new venture finance, capital markets, the expansion capital, and liquidity and warehousing. The uMnotho Fund is offered to black entrepreneurs who manage their businesses, are looking forward to expanding their existing business, or have new business ventures. The approximate funds one can get from this type of NEF funding range from R2 million to R75 million.

The other type of NEF funding is the Rural and Community Development Fund. This type of government funding aims at promoting sustainable changes in social and economic relations and also developing the rural economy through financial support and sustainability of the enterprises and co-operatives. It also has divisions in the acquisition, which entail new venture capital, start-up/green categories, and the expansion capital.

The third type of NEF funding is the iMbewu Fund. It aims at supporting black entrepreneurs who have a vision of expanding their existing businesses or opening a new business. The iMbewu Fund also has subdivisions in entrepreneur finance, franchise finance, and procurement finance. The Fund gives contributions in the form of quasi-equity, debt counseling, and equity finance products.

The last type of NEF funding is strategic projects. It has subdivisions of empowerment objectives. Strategic projects aim at increasing the participation of the blacks in early-stage projects. The projects must have an economic advantage and can offer what the government is looking for in the development sector.

CHECK: NEF Online Application 2022

3. SEFA funding

The Small Enterprise Finance Agency (SEPA) was founded in 2012. Over the next three years after its formation, SEFA was given R1.4-billion of funds by the South African Government and IDC to support small businesses in South Africa. SEFA offers entrepreneurs finances to start and grow their businesses. There are various types of SEFA funds which range from the term loans, the bridging loans, and structured finance. They also range from as low as R500 to R3 million.

CHECK: SEFA Online Application 2022

4. SEDA funding

SEDA refers to the Small Enterprise Development Agency, an agency under the Department of Small Business Development. It was established in December 2004, through the National Small Business Amendment Act, Act 29 of 2004.

CHECK: SEDA Funding Application Forms 2022

5. IDC funding

The Industrial Development Corporation (IDC), aims at offering financial support to businesses looking forward to acquiring capital for buildings, equipment, or even attaining the working capital. The Industrial Development Corporation also supports entrepreneurs by providing them with funds they require for their business expansion. IDC also promotes partnership between and across industrial organizations that within South Africa (SA) and even internationally.

There are different types of IDC which include the development funds, the Agro-processing Competitiveness Fund, the Green Energy Efficiency Fund, the Transformation, and Entrepreneurship Scheme, and the Risk Capital Facility Programme.

The IDC aims at giving funds to individuals with potential job opportunities, funds to cater to the urban renewal and poverty eradication, and funds to create employment to the women and youths. It goes to mean that any project you undertake should have economic viability and sustainability.

CHECK: IDC Funding Application Form 2022

What is a Grant?

A grant is defined as money or capital given to an individual or a business for a specific reason. While a business grant is equally an amount of money given to a business for the purpose of expanding and augmenting the enterprise. Grants are normally given by the government or organizations and may be either refundable or not depending on the type.

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Source: Sabonews.org

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