FINANCIAL SUPPORT

The following financial institutions can be approached for financial support for businesses.

FINANCIAL INSTITUTIONS

Institution

Summary of Potential Assistance

Contact Details

Website

National Empowerment Fund

1. Imbewu Fund - Offering debt, quasi-equity and equity finance of up to R20 million comprising of:

  • Entrepreneurship finance - Maximum funding of R5 million.
  • Procurement finance - Funding generally limited to R10 million.
  • Franchise finance - Funding generally limited to R5 million.
  • Rural and community development projects - Funding generally limited to R20 million.

2. Umnotho Fund - Fund is designed to improve access to BEE capital and has the following products:

  • Acquisition finance - Provides funding from R2 million to R75 million.
  • New venture financing - Capital of R5 million to R75 million.
  • Expansion capital - Funding of R5 million to R75 million.
  • Capital markets - Provides funding from R5 million to R75 million.
  • Liquidity and Warehousing - Provides funding from R5 million to R75 million.

Tel: 011 305 8000

www.nefcorp.co.za

Khula Enterprise Finance

Credit Indemnity Scheme - R10 000 to R3 million for start-ups or to expand small- to medium-sized businesses.

Enablis Acceleration Fund - Provides funding from R50 000 to R10 million. SMEs involved in all sectors - ICT, transport, tourism, agriculture, and service industry.

Khula Land Reform Empowerment Facility - Black farm workers or other black people who want to buy and own land for agricultural production purposes:

  • Maximum loan R10 million per project.
  • Maximum loan of R800 000 per black person participating in the project of up to R10 million.

Cape Capital Investment and Finance Co Ltd - Provides general finance, asset-based finance, trade, stock financing and related financing.

Enablis Khula Loan Fund - Provides predominantly ITC-focused SMEs access to funding to start and or expand businesses.

Anglo-Khula Mining Fund - Ranges between R1 million and R20 million per project; equity stake will not exceed 49% of the issued share capital of the investee company.

Tel: 021 418 0126

www.khula.org.za

Business Partners

Business finance - Minimum of R500 000 to R20 million maximum in all sectors to those formal small and medium businesses whose gross assets are under R100 million, where annual turnover does not exceed R200 million and/or employees are less than 500 in number.

Tel: 021 464 3600 (Cape Town)

Tel: 021 919 3242 (Bellville)

Tel: 044 873 6112 (George)

www.businesspartners.co.za

National Youth Development Agency (NYDA)

SME funding - Maximum loan given is R350 000 towards purchasing equipment or stock for the business.

Micro-finance - Loans ranging from R1 000 to R100 000.

Tel: 021 415 2040
(Cape Town)

www.nyda.gov.za

Industrial Development Corporation

Offers funding to businesses in manufacturing, ICT, tourism, agri-processing, media and motion, mining and minerals.

Minimum amount of R1 million - unlimited.

Tel: 086 069 3888

www.idc.co.za

Identity Development Fund (IDF)

Offers business loans to women-owned business - Minimum amount of R250 000 and maximum of R3 million for up to five years.

Tel: 011 351 2910

www.idf.co.za

New Business Finance

Working Capital and Asset Purchasing - Maximum amount of R250 000 to all businesses.

Bridging finance:

  • Minimum of R10 000.
  • Maximum amount of R250 000 to all businesses.

Transaction Finance:

  • Minimum of R10 000
  • Maximum amount of R250 000 to all businesses.
Tel: 021 671 6263

www.nbf.co.za

Blue Financial Services SMME Loans:
  • Minimum - R15 000.
  • Maximum - R3 million.

Tel: 021 949 4946
(Bellville)

Tel: 021 872 0768
(Paarl)

Tel: 022 715 4300
(Vredenburg)

www.blue.co.za

Old Mutual Masisizane Fund Minimum of R13 000 and a maximum of R5 million for women-, youth- or disabled-owned start-ups and existing businesses.

Tel: 021 509 5074 /7974

www.oldmutual.co.za

Micro Agriculture Finance Scheme of South Africa CASP Fund - Dependent on needs analysis.

Funding for small-scale emerging farmers.

Tel: 012 319 7263 /6825

www.agrinc.gov.za

Absa Bank It is advised to consult with the bank directly.

Tel: 0860 008 600

www.absa.co.za

Standard Bank It is advised to consult with the bank directly.

Tel: 0860 123 000

www.standardbank.co.za

First National Bank It is advised to consult with the bank directly.

Tel: 0860 112 244

www.fnb.co.za

Nedbank It is advised to consult with the bank directly.

Tel: 021 416 6000

www.nedbank.co.za



DEPARTMENT OF TRADE AND INDUSTRY (DTI) FINANCIAL ASSISTANCE (INCENTIVES)

For detailed information on the following programmes, you can visit the DTI website: www.thedti.gov.za
You can also contact the DTI on 021 480 8059 or 012 394 1444

Institution Summary of Potential Assistance
Automotive Investment Scheme (AIS)

A taxable cash grant of 20% of the value of qualifying investment in productive assets, as approved by the dti, to be disbursed over a three-year period.

Critical Infrastructure Programme (CIP)

Non-refundable scheme that covers between 10% and 30% of the total development costs of the qualifying infrastructure. The approved amount to be claimed in each of the phases will be determined by the beneficiary.

Export Marketing and Investment Assistance Scheme (EMIA)

Individual Exhibition Participation: Exhibition costs, including rental of exhibition space, construction of stand, interpretation fees, internet connection, telephone installation and registration fees up to a maximum of R45 000.

Film Incentive

This incentive scheme is only available to foreign-owned qualifying productions with Qualifying South African Production Expenditure (QSAPE) of R12 million to R99 999 999.

Isivande Women's Fund

Minimum: R30 000.
Maximum: R2 million.

Manufacturing Investment Programme (MIP)

Investment grant of up to 30% of the value of qualifying investment costs in machinery, equipment, commercial vehicles, land and buildings required for establishing a new production facility; expanding an existing production facility; or upgrading production capability in an existing clothing and textile production facility.

Investment projects of R5 million and below may qualify for an investment grant equal to 30% of their total qualifying investment cost, payable over a three-year period.

Investment projects of between R5 million and R30 million may qualify for an investment grant of between 15% and 30% of their qualifying investment costs, and payable over a two-year period.

Foreign investment projects may qualify for an additional grant for the cost of transporting their qualifying machinery and equipment to South Africa. The additional grant is the lower of 15% of the value of qualifying imported machinery and equipment or the actual transport costs of relocating qualifying new machinery and equipment from abroad to a maximum of R10 million.

Sector Specific Assistance Scheme (SSAS)

The Sector Specific Assistance Scheme (SSAS) is a reimbursable 80:20 cost-sharing grant whereby financial support is granted to export councils, joint action groups and industry associations.

Tourism Support Programme (TSP)

Up to 30% towards qualifying investment costs for establishing and expanding existing operations in South Africa.

The investment grant applicable is capped at a maximum of R30 million.

Local- and foreign-owned enterprises and is provided for qualifying investment costs of furniture, equipment, vehicles, land and buildings of up to R200 million.

Black Business Supplier Development Programme (DTI)

The programme provides grants to a maximum of R1 million:

R800 000 for tools, machinery and equipment on a 35:65 cost-sharing basis.

R200 000 for business development and training interventions per eligible enterprise to improve their corporate governance, management, marketing, productivity and use of modern technology on a 80:20 cost- sharing basis.

The Co-Operative Incentive Scheme (CIS)

Maximum amount of R350 000.
The Co-Operative Incentive Scheme (CIS) is a 90:10 matching cash grant.

Support Programme for Industrial Innovation (SPII)

The programme oversees three schemes namely:

  • Product Process Development Scheme:
    Small, very small and micro-enterprises and individuals in the form of a non-repayable grant of R1 million (maximum grant).
  • Matching Scheme:
    Provides financial assistance in the form of a non-repayable grant of R3 million (maximum grant).
  • Partnership Scheme:
    Promotes large-scale development through the provision of conditionally repayable grant of R3 million (maximum grant).
Capital Projects Feasibility Programme (CPFP) A cost-sharing grant of R100 000 to R5 million, which can be a maximum of 55% for projects in Africa and 50% for projects outside Africa of the total feasibility study costs.
The content on this page was last updated on 1 August 2011