Information on Funding Sources
Funding Partners and Key Qualification Criteria
|
Organisation |
Mandate and key services |
Investment type |
Qualification criteria to access funding |
Investment range |
|---|---|---|---|---|
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The National Empowerment Fund (NEF): Women Empowerment Fund 0861 843 633 |
The NEF Women Empowerment Fund is aimed at accelerating the provision of funding to businesses owned by black women. The funding starts from R250 000 to R75 million across a range of sectors, for start-ups, expansions and equity acquisition purposes. |
Repayable loan The first 6 months will bear no interest; After the first 6 months, the interest rate will be fixed at 1.5% for the remainder of the term; Up to 5 years to repay the loan, and longer for property transactions; The NEF will provide incubation support, entrepreneurial training, The DTIC WEF portion will be blended with standard NEF funding. |
Majority ownership, control and management by black women; Must be registered and recognised under South African law (company, close corporation, co-operative, collective investment scheme, NPO’s and community trusts); Be registered for tax, be in good standing with SARS and have a valid tax clearance certificate; Be involved in primary, secondary and tertiary sectors of the economy (with the exclusion of purely alcohol businesses, purely tobacco businesses, arms and ammunitions and related sectors); Be located in rural areas and/or townships; Sustain and create employment; Have a viable businesses case, and Be a start-up, an existing business seeking expansionary or acquisition capital. |
R250 000 up to R10 million for each transaction |
|
Department of Tourism & the National Empowerment Fund (NEF): Tourism Transformation Fund (TTF) 011 305 8000 or 086 184 3633 |
Facilitate transformation within the tourism sector by providing access to funding support through a combination of debt, equity and grant funding to black investors in the tourism sector; Develop the tourism sector by providing financial support to eligible projects with preference for projects that Reduce the funding gap that may exist between the prospective investor’s own contribution and the conditionally approved financing by the NEF; and Encourage the development of |
Grant funding |
TTF funding applications must adhere to the following: Submission of a duly completed and signed NEF application form and TTF checklist together with related supporting documents as per NEF requirements; Proven commercial viability and sustainability as per the NEF due diligence; The Enterprise must be at least majority (51%) black-owned; The enterprise must be black management controlled; Shareholders must be operationally involved in the business; Enterprises must be registered as a legal entity in South Africa in terms of South African law; The enterprise must either be a black-owned Exempted Micro Enterprise (EME) or black-owned Qualifying Small Enterprise (QSE) in terms of the Amended Tourism Broad-Based Black Economic Empowerment (B-BBEE) Sector Code. Enterprises that provide services to tourists as its direct clients. The grant funding is applicable to greenfield and brownfield transactions in the tourism sector; An applicant may be required to contribute a reasonable percentage of the total funding applied for as own contribution10% of the total funding application. |
Up to R5 million |
|
Department of Trade, Industry and Competition & the National Empowerment Fund (NEF): Black Business Manufacturing Fund (BBMF) 011 305 800 or 0861 843 633 |
To promote manufacturing among black SMEs; To assist black-owned SMEs to build optimum capacity that enables them to deliver quality products to their markets; To stimulate and grow manufacturing capacity by increasing the number of black-owned businesses in the Assist black-owned businesses to participate meaningfully in the manufacturing value chain and |
Repayable commercial loans Loan duration: maximum of 60 months (5 years) Moratorium: will not exceed 12 month on both interest and capital. However, extension of the moratorium will be considered where the implementation and commissioning of the |
The main focus of the Fund will be in the value chain of the manufacturing sector, targeting To qualify for BBMF, companies must be: Majority owned by black people - minimum of 51% black ownership; Registered and recognised under the South African laws; Either private companies (Pty Ltd), close corporations or co-operatives; Registered for tax and in good standing with SARS, and have a valid tax clearance certificate; Involved in the manufacturing value chain (including making and processing of goods with some sort of value add to products; Create sustainable jobs; Commercially viable, demonstrating their ability to repay the loan. Looking for funding for the acquisition of plant, equipment and machinery; improvement and upgrading of manufacturing processes; raw materials working capital; costs associated with delivering under export contracts; Looking for funding for the importation of plant and equipment (provided that the business can demonstrate that such plant and equipment cannot be sourced locally), and Looking for funding for the importation of raw materials provided such raw materials cannot be sourced locally. The Fund will not support businesses that are involved in the following areas:
|
The total fund is valued at R150 million |
|
Lulalend 087 943 2381 |
Real time access to business funding for Small medium enterprises (SMEs). No paperwork, collateral, or hidden fees. |
SME business loans |
Minimum 12 months trading history, R500 000 annual turnover |
Up to R2 million |
|
CDI Capital 021 461 1488 |
Business innovation, fast-track growth, and job creation to build a stronger, transformed South African economy through securing investment funds from the public and private sector. |
Grants and working capital loans |
Early stage Innovation Technology Solutions. |
Early stage innovation grants up to R800 000 Growth stage business grants R21 000 - R1 million R500 000 working capital loans |
|
Small Enterprise Development Agency (SEDA) 021 487 3640 |
To assist small enterprises through implementing the government’s business strategy; design and implement a standard and common national delivery network for small enterprise development; and integrate government-funded small enterprise support agencies across all tiers of government. |
Non-financial small business development support |
SEDA does not do funding |
SEDA does not do investment |
|
Business Partners Ltd fvollenhoven@businesspartners.co.za 021 464 3600 |
A risk finance company providing customised financial solutions for formal SMEs in South Africa and selected African countries. An innovative and internationally accepted risk financing model as a financing solution for SMEs in |
Individualised financing solutions using shareholders loans accounts, |
Proposals are assessed on the viability of business, which is comprised of the business and the entrepreneur. All sectors of the economy are eligible (excluding lending activities, direct farming operations, underground mining, and non-profit organisations). |
R500 000 to R50 million |
|
Old Mutual Masisizane Fund masisizaneenquiries@oldmutual.com 060 583 9919 |
SME business finance and Enterprise & Supplier Development mandate across various sectors including but not limited to Agribusiness, Franchising, Manufacturing, Tourism, Supply Chain (Contract based finance) and TMT. The Fund supports high growth and job multiplying enterprises to promote inclusive economic growth, alleviate poverty and improve food security in South Africa. |
Senior Debt (Preferred) Quasi-Equity Wholesale funding |
The Enterprise must be majority (at least 51%) Black South Africans or naturalized South African owned The enterprise must have clearly defined marketable products or services. The business must primarily operate in South Africa The enterprise must be a viable enterprise with the ability to meet its ongoing commitments The business must be registered with the South African Revenue Services (SARS) and be compliant. |
Minimum R500 000 |
|
Small Enterprise Finance Agency (SEFA) 021 418 0126 |
Fostering the establishment, development, and growth of SMMEs and co-operatives. Contributing towards poverty alleviation, job creation and economic growth. |
Repayable interest-bearing loans |
SEFA has various programmes servicing specific mandate. Qualifying criteria differs from programme to programme |
Loan facility up to R15 million (limited) |
|
Industrial Development Corporation (IDC) 021 421 4794 |
Finance the growth and expansion of private enterprises, development impact through job-rich industrialisation, contributing to an inclusive economy by funding black-owned and empowered companies, black industrialists, women, and youth-owned and empowered enterprises. |
Funding for start-up and existing businesses; senior debt, equity, quasi-equity, trade and bridging finance, guarantees and (in some cases) wholesale funding to intermediaries. |
We list and foremost assess all applications on financial and economic merit. We assess the soundness of the financial, marketing, technical and management dimensions of a project or transaction. We require a business plan, at least two years of historical financials and latest management accounts. For start- ups a commercial business case with shareholder contribution. We consider applications in mining, agriculture and agro-processing, manufacturing, energy, infrastructure, media and motion pictures and small businesses across these focus areas. |
R1 million - R15 million for small business. Funding can exceed R1 billion with board approval. |
|
National Empowerment Fund 021 431 4760 |
Provision of financial (loan funding) and non-financial support to black empowered businesses as well as the promotion of a culture of savings and investment among black people. |
Development Finance Institution |
51% black-owned, |
R250,000 - R75 million |
|
Retail Trade Funding michelle@retailtradefunding.co.za https://www.retailtradefunding.co.za/ 0822112241 |
Funding SMEs with a different approach to traditional business loans. Retail Trade Funding links loan repayments to turnover that will match with the SME’s cashflow cycles. |
SME funding (business loans) |
Card machine and daily turnover |
Up to R250 000 |
|
National Youth Development Agency 0871589637 |
The NYDA mandate is derived from legislative frameworks such as the NYDA Act (54 of 2008), the National Youth Policy (2009-2014) and the draft Integrated Youth Development Strategy as adopted by the Youth Convention of 2006. |
Grant funding |
Youth between 18 35 years *for agriculture and technology related projects the max. threshold is R250,000.00 (Threshold submissions requirements applies) |
Threshold 1 R1000 - R10 000 Threshold 2 R10 001 - R50 000 Threshold 3 R50 00 - R100 000 Threshold 4 R100,001 – R200,000 |