The Department of Small Business Development (DSBD), through the Shared Economic Infrastructure Facility, actively leverages public sector investment to deliver critical infrastructure. In doing so, it creates an enabling environment that attracts additional private investment. Notably, the programme focuses on townships, rural areas, and inner-city locations where clear and sustained business activity already exists.
Furthermore, the facility encourages strong public sector partnerships to establish and upgrade business infrastructure. As a result, it improves market access, stimulates local economic development, and enhances the overall performance of businesses operating within these shared facilities.
In addition, the Shared Economic Infrastructure Facility operates as a 50:50 cost-sharing grant, provided on a reimbursable basis. This means that the Department of Trade and Industry (DTI) reimburses 50% of qualifying infrastructure project costs once beneficiaries achieve agreed project milestones.
However, the DTI caps its contribution at a maximum of R5 million (VAT inclusive) per qualifying applicant, thereby ensuring equitable distribution of funding while maintaining financial sustainability.
Qualifying Infrastructure Costs under the Shared Economic Infrastructure Facility
Shared facility infrastructure refers to the structural foundations, upgrading, and maintenance of a multi-purpose facility to be shared by the number of enterprises.
Qualifying shared infrastructure costs refer directly to the design, installation, construction, and erection of the infrastructure, and includes the following:
- Warehouse / storage facilities;
- Lighting, water (including irrigation for farming), and ablution (including plumbing works);
- Parking, paving (entry and internal roads), and fencing (including walls);
- Shelter / stalls for trading area of vendors;
- Cold storage for common use;
- Common use tools, equipment, and machinery;
- Administration and information centre;
- Exhibition spaces;
- Child care facility for vendors; and
- Business infrastructure (e.g. industrial facilities).
The eligible applicant must be:
- A municipality of the Republic of South Africa;
- A municipal entity as defined in Section 1 of the Local Government Municipal Systems Act, 2000; or
- A provincial government entity.
The provincial government can contribute towards the shared economic infrastructure project, but cannot be an applicant under this programme.
Contact us for more information on how you can access the Shared Economic Infrastructure Facility incentive.
