Government funding agencies in South Africa assists SMMEs to overcome financial barriers, propel sector growth, and contribute to economic development and job creation in the country.
At Dream Team Capital, we specialise in business finance and assist in managing and implementing the finance process from start to end. We have South Africa’s largest network of finance partners that include venture capital companies, private equity firms, government BEE initiatives, banks, angel funds, crowd funds, Silicon Cape investment companies, and rent to own funding initiatives for your business funding requirements.
The Department of Trade, Industry, and Competition (DTIC)
The Department of Trade, Industry, and Competition (DTIC) and its subsidiary agencies are involved in promoting economic development, Black Economic Empowerment, implementing commercial law, promoting and regulating international trade, and consumer protection.
To increase industrial competitiveness and to broaden the participation of enterprises in the economy, the DTIC provides financial support to qualifying companies in various sectors of the economy. The Department offers financial support for various economic activities, including manufacturing, business competitiveness, export development, and market access.
The Industrial Development Corporation (IDC)
The Industrial Development Corporation (IDC) is a self-financing, state-owned national development finance institution. Its primary objectives are to contribute to the generation of balanced, sustainable economic growth in Africa and to the economic empowerment of the South African population, thereby promoting the economic prosperity of all citizens.
The IDC achieves this by promoting entrepreneurship through the building of competitive industries and enterprises. Supporting industrial development capacity and promoting entrepreneurship are therefore key objectives of the IDC. The IDC funds start-up and existing businesses up to a maximum of R1 billion.
The KZN Growth Fund
The KZN Growth Fund is an initiative that aims to create sustainable economic development, job creation, and Black Economic Empowerment within the infrastructure sector in Kwa-Zulu Natal.
The Fund is structured as a unique public-private partnership between the Provincial Government, commercial invitations, and development finance institutions. The Growth Fund targets infrastructure related projects R30 million and above.
The Land Bank
As a development finance institution, the Land Bank leverages funding from public and private sector partnerships to offer enabling funding solutions geared towards ensuring inclusivity, sustainability, and growth in the agricultural sector. It is guided by a government mandate to provide financial services to the commercial farming sector and to agri-businesses, and to make available certain financial products to facilitate access to finance by new entrants to agriculture from historically disadvantaged backgrounds.
The maximum loan at the special interest rate is R500 000. If you borrow more than R500 000, the interest on the amount over R500 000 will be charged at the standard rate for long-term loans. The loan term is up to 25 years.
The National Empowerment Fund (NEF)
The National Empowerment Fund (NEF) is a driver and leader in promoting and facilitating black economic participation by providing financial and non-financial support to black empowered businesses. The NEF promotes a culture of savings and investment among black people.
It provides business loans from R250 000 to R75 million across all industry sectors, for start-ups, expansions, and equity acquisition purposes.
The Small Enterprise Finance Agency (sefa)
The Small Enterprise Finance Agency (sefa) provides development finance to SMMEs and Co-operatives that are not able to attract commercial credit. SEFA‘s mandate is to foster the establishment, survival and growth of SMMEs and contribute towards poverty alleviation and job creation.
The facilities offered by sefa range from a minimum of R50 000 to a maximum of R15 million.
The Technology Innovation Agency (TIA)
The Technology Innovation Agency (TIA) Seed Fund aims to assist innovators at higher education institutions and SMMEs to advance their research outputs and ideas to develop prototypes, proof of concepts, and business cases.
The TIA provides financial and non-financial support to its stakeholders, including science councils, public entities, higher education institutes, private research institutions, and entrepreneurs. It invests primarily in sectors including advanced manufacturing, agriculture, industrial biotechnology, health, mining, energy, and ICT.
For more information on the government funding agencies in South Africa – Contact Dream Team Capital