South African Small, Medium, and Micro Enterprise (SMME) Financiers

Table of Contents 1. Introduction...... 5 2. Banking Institutions ...... 5 2.1 ABSA ...... 5 2.2 Al Baraka Bank ...... 6 2.3 ...... 7 2.4 First National Bank ...... 7 2.5 ...... 9 2.6 Mercantile Bank ...... 10 2.7 ...... 11 2.8 Sasfin ...... 11 2.9 ...... 12 2.10 Grindrod Bank ...... 12 3. Government Funders ...... 13 3.1 Development Bank of Southern Africa (DBSA) ...... 13 3.2 The Eastern Cape Development Corporation (ECDC) ...... 14 3.3 The Gauteng Enterprise Propeller ...... 15 3.4 Industrial Development Corporation (IDC)...... 16 3.5 The Ithala Development Finance Corporation Limited (Ithala) ...... 17 3.6 Limpopo Economic Development Agency (LEDA) ...... 18 3.7 The National Empowerment Fund (NEF) ...... 18 3.8 North West Development Corporation (NWDC) ...... 19 3.9 Small Enterprise Finance Agency (sefa) ...... 20 4. Private Investors/Fund Managers ...... 20 4.1 Angel Investment Network ...... 20 4.2 Ata Capital ...... 21 4.3 Business Partners Limited ...... 21 4.4 Centrafin ...... 23 4.5 Collins Private Equity Holdings ...... 24 4.6 Edge Growth ...... 24 4.7 First Asset Finance...... 25 4.8 GroFin ...... 25 4.9 Grovest ...... 26 4.10 Horizon Equity ...... 26 4.11 Imbewu Capital Partners ...... 27 4.12 Inspired Evolution ...... 27 4.13 Knife Capital ...... 27 4.14 Lulalend ...... 28 4.15 Metier ...... 28 4.16 Merchant West ...... 29 4.16 Musa Capital ...... 29 4.17 Nodus ...... 30 4.18 Omidyar Network...... 30 4.19 Silvertree Internet Holdings ...... 31 4.20 Spartan ...... 31 4.21 Utho Capital ...... 32 4.22 Zimele ...... 32 5. Micro (to small) Financiers ...... 33 5.1 4Di Capital (Pty) Ltd ...... 33 5.2 AngelHub Ventures ...... 33 5.3 i-Cubed Capital ...... 34 5.4 IDF Capital ...... 34 5.5 The Masisizane Fund ...... 34 5.6 Merchant Capital ...... 35 5.7 Merchant Factors ...... 35 5.8 RainFin ...... 36 5.9 Real People ...... 36 5.10 ReichmansCapital ...... 37 5.11 Retail Capital ...... 37 5.12 Royal Fields Finance ...... 38 5.13 WDB Investment holdings ...... 38 6. Government Grants and Incentives ...... 39 6.1 Aquaculture Development and Enhancement Programme (ADEP) ...... 39 6.2 Automotive Investment Scheme (AIS) ...... 39 6.3 Black Business Supplier Development Programme (BBSDP) ...... 39 6.4 Business Process Services (BPS) Incentive ...... 40 6.5 Capital Projects Feasibility Programme (CPFP) ...... 40 6.6 Clothing and Textiles Competitiveness Programme (CTCP) ...... 40 6.7 Co-operative Incentive Scheme (CIS) ...... 41 6.8 Critical Infrastructure Programme (CIP) ...... 41 6.9 Export Marketing & Investment Assistance Scheme (EMIA) ...... 41 6.10 Film Incentive ...... 42 6.11 Global Business Services Incentive (GBS) ...... 42 6.12 Isivande Women’s Fund (IWF) ...... 42 6.13 Manufacturing Competitiveness Enhancement Programme (MCEP)...... 42 6.14 People-carrier Automotive Investment Scheme (P-AIS)...... 43 6.15 Sector-Specific Assistance Scheme (SSAS) ...... 43 6.16 Support Programme for Industrial Innovation (SPII) ...... 43 6.17 The Technology and Human Resources for Industry Programme (THRIP) ...... 43

1. Introduction

When asked, the majority of entrepreneurs will tell you that access to finance is their greatest challenge. This document provides an overview of organisations that provide funding to the smallest micro businesses all the way through to medium-sized enterprises. Funders may target certain industries, types of business or even geographical areas. By knowing who and where these financiers are, entrepreneurs can approach the most appropriate organisation that meets their specific needs and goals.

2. Banking Institutions

2.1 ABSA

ABSA has created the following range of finance solutions for small businesses:

2.1.1 Development Credit Fund

The Absa Development Credit Fund allows SMEs – including new start-ups, existing businesses, franchises, and businesses switching from other banks – to apply for and acquire business of between R50 000 and R5 million with a maximum loan term of four years and monthly reducible overdrafts (subject to credit approval).

To qualify for the loan, entrepreneurs need to be South African citizens permanently residing in , have a well-researched plan, operate in an approved industry, and be able to show the business’s profitability through historical financials or a realistic cash flow forecast, among other criteria.

2.1.2 Women Empowerment Fund

The Absa Women Empowerment Fund allows women with the skills and expertise to make a success of their business to apply for finance of between R50 000 and R5 million with a maximum loan term of four years and monthly reducible overdrafts. The Women Empowerment Fund has similar qualifying criteria to the Development Credit Fund.

2.1.3 SME Fund

The SME Fund loan is specifically geared towards SMEs that are 100% black owned and have been awarded a government contract or tender. SMEs – new start-ups and existing businesses – that fit this criteria may apply for a loan of between R50 000 and R3 million with a maximum loan term of five years.

2.1.4 Small business support

To help emerging black small and medium enterprises (SMEs) to grow and prosper, Absa offers access to development finance, access to markets, and business development support.

 Access to development finance: Through partnerships with corporate clients and other partners we are able to offer a number of development funding solutions to qualifying emerging SMEs, based on the profile of the entrepreneur and the business.  Access to markets: The Procurement Portal is a virtual marketplace bringing emerging SME suppliers and corporate procurement teams together to access goods and services. This portal unlocks numerous opportunities for SMEs to penetrate existing markets.

In addition to financial support, Absa also provides non-financial support through the business development support function. Depending on an SME’s needs, Absa offers business and financial management training on a variety of topics, and business mentorship to assist SMEs to grow their businesses.

Apart from the SME-specific financial solutions above, Absa also offers additional business loans and funding. These solutions include vehicle and asset finance, property finance, debt finance, as well as further short- and medium-term business solutions. Find out more about obtaining finance through Absa by visiting https://www.absa.co.za/business/ or contacting the Support Centre on 0860 040 302.

2.2 Al Baraka Bank

Al Baraka Bank, registered since 1989, pioneered Islamic banking in South Africa to meet the need for a system of banking which adhered to Islamic economic principles. The bank, with a strategically located national branch network, is South Africa’s only fully-fledged Islamic bank and is a subsidiary of the international Al Baraka Banking Group.

2.2.1 Trade Finance – Murabaha

In South Africa, Al Baraka Bank has effectively provided trade finance based on Islamic financing principles. Al Baraka can purchase a commodity at the request of the client and sell the commodity to the client on a Murabaha basis. Typically the Bank grants a revolving trade finance facility to the client within this facility.

2.2.2 Asset-Based Finance – Murabaha

The Bank has successfully implemented the Murabaha sale with instalment repayments as a method of financing for all assets, which includes business equipment, industrial machinery and commercial vehicles. Structured packages are advantageous as they allow a business to plan for growth, development and the upgrading of equipment. Since the price and instalments are fixed, forecasts and profitability are easier to predict regardless of market volatility.

2.2.3 Property Finance – Commercial and industrial

Al Baraka Bank has considerable experience in the commercial property financing based on the sound Islamic economic principles of Murabaha and Musharaka. These methods of financing allow their clients’ one of the following options:

Murabaha

The Bank will purchase the property and sell it to the client on a Murabaha basis at a price which includes a profit. The price is repaid in instalments over an agreed period. No changes can be made to the terms of the contract over the stated period

Musharaka

This is a partnership contract between two or more parties who together provide the capital.

When entering into a Musharaka transaction for commercial property, the Bank and the purchaser agree to the proportionate share of the capital to be invested and the basis for sharing the income from the property. The purchaser can lease the property himself/herself, or lease it to other tenants.

Musharaka financing is particularly attractive to businesses in need of capital for expansion. The share of the profits and losses are agreed upon when the partnership is formed. The purchaser also has the option to buy out the Bank's share over an agreed period.

Approved facilities are valid for a certain period and subject to the Banks valuation of the property. Repayment can be structured to suit their customer’s circumstances. At the end of the repayment period the customer will have acquired an income-generating asset.

Find out more about obtaining finance through Al Baraka Bank by visiting http://www.albaraka.co.za/ or contacting the Support Centre on 0860 225 786.

2.3 Bidvest Bank

As a bank that started from a successful business, Bidvest Bank has extra insight into what it takes to run one. They understand that it’s impossible for every bank to be right for every business, which is why they have chosen to focus on providing their business customers with business banking services that they know they can successfully deliver:

 Transactional banking: A transactional business bank account for small to medium businesses with a dedicated business banker as the single point of contact and assistance.

 Merchant services: Bidvest Bank offers merchants a world class Point-of-Sale (POS) payment solution that facilitates fast, secure and reliable transaction processing.

 Foreign exchange: For businesses with importing, exporting and other international payment requirements, the Global Payments Online™ (GPO) platform allows customers to make and receive foreign payments online.

 Asset-based finance: Bidvest Bank provides cost-effective solutions and service excellence for a business’s vehicle and asset finance, and commercial property finance needs.

Bidvest Bank also provides its business customers with comprehensive savings and investments and trade services product offers. Entrepreneurs with businesses that have been in operation for at least two years and have an annual turnover of R10 million or more, contact Bidvest Bank by calling 0860 11 11 77, emailing [email protected], or visiting https://www.bidvestbank.co.za/.

2.4 First National Bank

FNB Commercial provides financial solutions to SMME, agricultural, healthcare, education, franchise, motor dealership, tourism, and middle corporate and business clients. 2.4.1 Business Overdraft

A short-term, convenient credit facility that is tailor-made to give the business more financial flexibility. This is ideal for emergencies and unforeseen circumstances. The business overdraft facility is linked to an entrepreneur’s Business Account and provides the ability to make payments even when there are no cash funds available in the account, thus avoiding penalty fees and additional charges. The monthly repayments an entrepreneur is expected to make are based on the amount of credit they use.

2.4.2 The Vumela Enterprise Development Fund

FNB Commercial, together with Edge Growth, manages the Vumela Enterprise Development Fund and through it makes equity investments into high growth SME's currently struggling to access finance through traditional channels. Growth finance of this nature is challenging to access in the SA economy as it falls into the "missing middle”.

The fund offers B-BBEE capital, growth finance, and expert growth support/intensive business development support.

2.4.3 FNB Franchise Division

FNB understands the value of relationships in your business, whether it be the relationship with franchisees, suppliers or franchisors. That's why the bank aims to build enduring and rewarding relationships with the entrepreneur, and assist franchisors and franchisees with the tools needed to add value to your business. One such tool is Franchise Toolkit which outlines the steps entrepreneurs need to take before, during and after deciding on a franchise. It provides entrepreneurs with thought starters, questions to ask themselves and others, as well as the guidelines to the documents they may need and the regulations they should abide by.

All applications are handled and monitored centrally, while regional relationship managers are appointed to guide the franchisee through the application process. Find out how FNB facilitates and funds franchising online.

2.4.4 FNB Debtor Finance

FNB’s Debtor Finance is a facility that improves the small business owner’s cash flow for immediate business growth. It is a non-disclosed facility, which is designed to afford entrepreneurs cash flow acceleration against the security of their debtor's book. This facility is available for businesses with an annual turnover of approximately R12 million.

2.4.5 Commercial Property Finance

This can be for those looking to acquire/ refinance office, industrial, retail or residential properties for investment purposes (rental stock). Or to purchase the office, industrial or retail building from which the business operates.

2.4.6 Vehicle and Asset Finance

WesBank asset finance allows entrepreneurs to choose the finance option that makes the most sense for their business. Small-to-medium enterprises, large corporates, and business professionals can all enjoy the benefits of a truly tailor-made solution. Opt to lease or opt to buy through instalments. Sign online or speak to a professional. Through WesBank, entrepreneurs can choose to buy an asset, rent an asset, or obtain small business asset funding. Call 0861 922 677, or email [email protected] for more information on WesBank’s asset funding solutions.

Find out more about the business finance solutions provided by FNB by visiting the website at https://www.fnb.co.za/index.html or contacting the bank on 087 736 2247.

2.5 Investec

Investec is an international specialist bank and asset manager that provides a diverse range of financial products and services to a niche client base. SME-related financing products include:

2.5.1 Finance for Owner-Managed Businesses

Investec provides entrepreneurs with the opportunity to gain access to finance, logistical support, transactional ideas and centuries of knowledge to take their business to the next level.

 Private capital. Investec provide established entrepreneurs, business founders and high net worth individuals with private capital solutions, transaction ideas and access to Investec’s networks. Their commitment to entrepreneurs lies in their unrivalled service that aims to unlock or create value.

 Import solutions. Investec’s import solutions allow entrepreneurs to remove all the administration and complexities associated with their import process by choosing a fully integrated end-to-end import transaction solution. These solutions are specifically geared towards entrepreneurs who have been in the trading business for at least three years and have growth potential.

 Finance for medical practices. Entrepreneurs can manage their cash flow and gain the finance they need to set up a professional practice, or expand their existing one. Investec offers flexible financing solutions to make your business vision a reality.

2.5.2 Commercial Property Finance

A comprehensive range of integrated property funding solutions across all property sectors in South Africa and within selected geographies. Investec focuses on high net worth individuals and selected listed property funds.

The bank’s core expertise lies in property funding and investment solutions in office, retail, industrial and residential property sectors. Investec proactively follows and assists client leads and opportunities both locally and internationally. They facilitate deals, including innovative, non-traditional transactions.

2.5.3 Specialised finance solutions

Specialist finance products include:

 Power, Transport and PPP / Social Infrastructure Sectors: Investec provides global expertise in advising and structuring specialist finance for complex infrastructure projects.  Aviation Finance: Investec’s aviation team has significant experience in advising, arranging and participating in aircraft financing with transactions typically starting at $10 million.

 Supplier Finance: Investec enables suppliers to receive financing solutions so they can offer their clients convenient alternatives to paying cash to acquire equipment and/or their services.

In addition to the above, Investec also provides specialised finance around corporate solutions, export and agency finance, as well as import solutions. Find out more the funding options Investec offers by visiting https://www.investec.com/en_za.html or contacting 011 286 7000.

2.6 Mercantile Bank

Mercantile Bank offers businesses a specialised range of secure and user-friendly Business and Commercial Banking products and services.

Mercantile Bank adopts a niche approach to Business and Commercial Banking and takes pride in being able to tailor their solutions to suit their clients’ unique and evolving needs. Their service has a personal touch and their teams are skilled, experienced, and flexible. Pricing is transparent and they are committed to solution-driven service excellence across their operations, from their business centres to their high- tech dealing room.

The Business Banking products that Mercantile Bank offers are specifically targeted at businesses with a turnover of between R2 million and R75 million. In particular, the bank focuses on the following industries: Finance, Business and Professional Services, Manufacturing and Engineering, Wholesale, Retail, Trade and Franchising, as well as Transport and Logistics.

Mercantile Bank offers SMEs the following solutions:

 Transact: Mercantile Bank offers a comprehensive range of business and commercial banking transactional products, along with a personal assurance of professional service delivery at all times.

 Borrow: Mercantile Bank offers a range of business borrowing products tailored to suit an entrepreneur’s unique requirements, all at highly competitive rates. Their suite of borrowing products includes overdrafts as well as term loans, asset and property finance.

 Invest: Entrepreneurs can enjoy a full suite of Mercantile Bank investment products and services to cater for all their investment needs and deliver a solid return on their investment. These accounts include Call Accounts, Notice and Fixed Deposits, as well as Money Market accounts.

 Merchant acquisition: Mercantile Bank Merchant Services takes care of all their card-based customer purchases.

 Pay and collect: Mercantile Bank Payment Solutions provides leading, cutting-edge, cost- effective, time-saving and secure systems for processing and managing electronic payments and collections through the South African banking system. Regardless of the size of the business or the volume of the transactions, they have a solution to suit their specific needs. They have assisted clients in certain instances to secure an improvement of up to 35% in unpaid collections.  Rental finance: Mercantile Bank has a national presence with branches in Durban, and . All with teams that are committed to customer satisfaction, geared for offering tailored solutions, and have a passion for the business operations.

Further information on Business Banking solutions can be found on https://www.mercantile.co.za/ or through contacting Mercantile Bank on 011 302 0300.

2.7 Nedbank

Nedbank Business Banking offers these finance solutions to business owners:

 Loans: Nedbank offers loans to start up, grow, offer flexibility or manage debt. The bank offers start-up loans, business growth loans, overdrafts and short-term loans, financial assistance, and debtor management.

 Structured solutions: Nedbank’s specialists have in-depth knowledge and understanding of various industries. The structured solutions include private equity, export credit finance, global commodity finance, preference share investments, as well as additional structured finance solutions.

 Property finance: Nedbank are market leaders in commercial property finance. Nedbank Corporate Property Finance specialises in financing commercial, industrial, retail and residential development property, offering loan funding to developers, owners, occupiers and investors. Agile financial solutions include access to undrawn funds, interest-only periods, fixed and floating interest rates, flexible repayments and residual value transactions.

 Vehicle and asset finance: Nedbank specialises in providing tailor-made options to finance your asset purchases. Nedbank specifically offers solutions regarding instalment sale, financial lease, full maintenance leasing, operating rental, managed maintenance, and NedFleet – a full- service fleet management solution.

Find out more about the small business banking solutions Nedbank offers by contacting their Small Business Services division on [email protected] or 0860 116 400. Alternatively, visit https://www.nedbank.co.za/.

2.8 Sasfin

Sasfin is a bank-controlling company that provides a comprehensive range of specialist financial products and services for Business and Wealth clients. Their financial products and services focus on the needs of entrepreneurs, corporates, institutions, and high-net worth individuals.

Sasfin is “beyond a bank” in that they go beyond the traditional expectations of the industry and strive to deliver solutions with exceptional personalised service. They challenge themselves to create tailor-made products and solutions that suit their clients’ needs – whether they are entrepreneurs or investors.  Capital: Sasfin provides capital and create tailored solutions to support your business growth, whether you need an equity partner, property investor or a sophisticated corporate financier.

 Bank: Sasfin combines excellent personal service with innovative financial solutions to assist businesses and individuals to bank the way they want, where they want and when they want.

Visit https://www.sasfin.com/, call 011 809 7500, or email [email protected] to find out more information on the specific capital and banking services Sasfin offers.

2.9 Standard Bank

Whether a business needs to buy property, finance equipment or fund operating expenses, Standard Bank offers a number of financial solutions. Standard Bank allows entrepreneurs to get the cash-flow, liquidity, or working capital solution that helps them make the quick decisions their business needs to keep growing. The bank offers businesses the following products and services:

 Cash flow solutions: Standard Bank allows businesses to have access to an overdraft, revolving credit plan, a fixed term business loan, a fixed repayments business loan, and an agricultural production loan.

 Vehicle and asset financing: Standard Bank offers financing for commercial vehicles, capital equipment, and foreign or local goods.

 Commercial property financing: Standard Bank offers commercial property financing solutions for investors and for owner-occupiers.

 Specialised financing: The specialist financing offers is in regard to disclosed debtor finance, non-disclosed debtor finance, and banker’s acceptance.

Standard Bank also offers business insurance which allows business owners to cover all of their insurance needs with a single policy. Further information about business insurance and other business banking solutions by calling 0860 123 000 or visiting https://www.standardbank.co.za/.

2.10 Grindrod Bank

With their focus on leveraging a well-capitalised balance sheet with human intellect, Grindrod Bank has been able to build a solid client franchise and act strategically in navigating the evolving financial landscape. Accordingly they source remarkable individuals, with extraordinary drive and professional expertise, to create a truly dynamic niche bank. Grindrod Bank’s corporate lending solutions include:

2.10.1 Private Client Lending

They provide short-to-medium term financing options to existing Grindrod Securities, Grindrod Asset Management and Grindrod Bank clients. These facilities are secured by their clients’ portfolios which enable them to either re-invest into their respective investments or gear their portfolios for other business interests. Term loans and overdraft facilities are also offered to business entities on the proviso that the facility is secured by first class security. 2.10.2 Commercial Property Finance

Traditional Mortgage Finance

Grindrod Bank provides property finance solutions that can be designed and tailored for the purchase or development of small to medium scale commercial properties, redevelopment projects and refurbishments. Traditional property mortgage finance is offered where properties are geared up to a level of around 70% of their value or purchase price.

Funding over and above this traditional level is considered mezzanine finance, which is a hybrid of traditional mortgage finance and equity funding. This is utilised to bridge the gap between the available equity a client may have and the traditional mortgage loan.

Mezzanine Finance

Grindrod Bank’s property division specialises in providing mezzanine finance, on a select basis against quality real estate to property investors who have an established track record in the industry, with the Bank’s economic benefit being determined on a deal-by-deal basis. Mezzanine funding allows their clients the opportunity to utilise scarce capital resources across multiple property transactions, leveraging quality assets optimally and hence enhancing their return on capital.

2.10.3 Debtor Finance

Grindrod Bank understands that the key to a successful business, is a healthy cash flow. Extended terms for customers is a common business practice that can impact cash flow negatively. Debtor finance is a short-term financing solution which is used to improve cash flow. It allows a business to use the cash due to them from customers in advance, rather than waiting for them to pay. This in turn places you in a stronger position to negotiate more favourable discounts with your suppliers.

Grindrod Bank purchases the debtors book and will make early payments on invoices for a period of up to 120 days. The debtor finance facility is aimed at clients with one or more large debtors, which are either blue-chip companies or qualify for credit insurance.

Contact Grindrod Bank by visiting their website at https://www.grindrodbank.co.za/ or filling out their contact form online.

3. Government Funders

3.1 Development Bank of Southern Africa (DBSA)

The DBSA is a state owned entity with the purpose of driving financial and non-financial investments in the social and economic infrastructure sectors. Water, energy, transport and ICT are its key focus areas. Its investment products include Equity Funds, BEE financing of equities and private funding. The DBSA also manages three funds:

 Infrastructure Investment Programme for South Africa (IIPSA): IIPSA supports the implementation of the government's infrastructure programme and address the constraints to infrastructure development in Southern Africa. The programme provides innovative financing involving the co-funding of EU grants together with loans from participating Development Finance Institutions. IIPSA will support the development of both national and regional infrastructure projects.

 The Jobs Fund: The Jobs Fund, which the DBSA manages on behalf of the National Treasury, invites public, private and non-governmental organisations to submit innovative proposals that will facilitate job creation within the economy. The Fund offers once-off grants in the areas of enterprise development, infrastructure, support for work seekers and institutional capacity building. For more info click here.

 The Green Fund: The objective of the Green Fund is to lay the basis for the South African economy to transition to a low carbon, resource efficient and climate resilient development. The Fund will only support initiatives that would not have been implemented without its support. It is additional and complementary to existing fiscal allocations. For more, click here.

For more information on any of the initiatives listed above, visit https://www.dbsa.org/ or call 011 313 3911.

3.2 The Eastern Cape Development Corporation (ECDC)

The ECDC distinguishes itself as the financial service provider for initiatives that bring with them a meaningful developmental impact on the Eastern Cape economy. The ECDC will consider financing any developmental initiative where the head office is in the Eastern Cape, or when the greatest developmental impact of the initiative is experienced in the Eastern Cape economy.

3.2.1 Short-term finance products

The ECDC’s short-term financing methodology consists of the provision of small loans, contractor cash- flow facilitation, and trade finance vehicles, including:

 Aimed at SMMEs, the POWERplus small loan empowers them to reach their objectives by adding financial power. POWERplus describes the value add that this competitively priced small loan offers businesses as they pursue financial entrenchment and sustainability. Finance begins at R50 000 to a maximum of R500 000 over 12 to 48 months. The loan is linked to the prime interest rate.

 WORKflow contractor loans provide emerging contractors with both financial and technical support. Made up out of two of the most important elements to a sustainable, successful business – work and cash flow, WORKflow is a product geared to the efficient flow of cash for clients servicing construction contracts in the public and private sectors. Investment bracket: R350 000 to R20 million over 3 to 36 months at Prime -2% to Prime +5%.

 The NEXUS trade loan serves the short-term finance needs of clients servicing contracts in the public and private sectors - placing them on the road to sustainable success. Investment bracket: R10 000 to R500 000 over 1 to 6 months at 2.5% interest per month.

3.2.2 Long-term finance products

The Termcap loan and Equitrader equity finance product provide term loans and equity trading.

 The EQUItrader provides for equity financing mainly for the manufacturing and retail sectors. ECDC adopts an “equity warehousing’ policy” that aims to move equity off its balance sheet 5-7 years from the date of the transaction by selling its equity stake in a business to the existing shareholders. This process is geared to assist businesses to achieve their developmental objectives. Equity warehousing is, therefore, the effective facilitation of equity deals (especially B-BBEE buy-ins and buy-outs) through capital investment into businesses.

 The TERMcap loan is a vehicle by which capital is channelled to a business to allow for financial viability and sustainability through term-defined debt financing. Finance begins at R500 000 to a maximum of R20 million paid over a period of between 5 to 7 years at Prime -2% to Prime +5%.

Further information on the ECDC’s short- and long-term finance products as well as the applications they will not finance can be accessed on the website http://www.ecdc.co.za/ or by calling 043 704 5680.

3.3 The Gauteng Enterprise Propeller

The Gauteng Enterprise Propeller (GEP) promotes, fosters and develops small enterprises in Gauteng thereby implementing the policy of the Gauteng Provincial Government for small enterprise development.

To be considered for financial support, businesses need to submit all the standard mandatory documents such as CIPC registration; tax clearance; FICA requirements; company profiles and management profiles. Businesses also need to submit a business plan (GEP will assist in the development where applicable within GEP’s qualification processes) where funding is for start-up, expansion and franchise purposes. For contract finance, a business plan is not required. The viability assessment of contract financing is based on the actual contract or purchase order. Business plans are not required for micro-finance applications below R50 000. All products under financial support will be assessed and funded based on assessment report.

The GEP offers the following financial support:

 Start-up Finance. Start-up Finance Programme is dedicated to helping SMME’s and cooperatives to secure the finances they need to jump start your business.

 Contract Finance. This type of loan caters for entrepreneurs and SMMEs who secure contracts from government departments, public entities and private sector companies.

 Franchise Finance. GEP Franchise Finance Programme assists with funding to acquire a new or existing franchise, as well as the much needed working capital.

 Growth & Expansion Finance. This programme assist viable existing businesses looking to expand their operations by securing additional capital.

 Micro-finance. The Micro-finance Loan Programme offers co-operatives, micro, very small and small businesses, access to much needed finance. The programme is specifically geared towards start-ups and existing businesses who demonstrate growth potential and contribute to the broader economic objective of job creation and poverty eradication.

 Sponsorship. GEP may also provide sponsorship to organisations that promote the economic participation of women, youth and people with disabilities.

Find out more about the GEP by visiting their website at https://www.gep.co.za/, emailing [email protected], or calling 087 057 2000.

3.4 Industrial Development Corporation (IDC)

The IDC is a national development finance institution belonging to the government, designed to promote economic and industrial development. The mission of the Development Funds Department is to enhance the IDC’s developmental outcomes by providing niche and innovative financial programmes to maximize the achievement of its industrial development goals.

The IDC administers a number of special schemes, which have various concessions targeting developmental mandates including job creation, empowerment of women, youth and black industrialists, funding of innovation, and increasing competitiveness in manufacturing.

Funding provided to deserving projects/enterprises is backed up with a business support programme providing pre- and post-investment assistance based on the evaluated needs of each project/enterprise.

 Gro-E Youth Scheme: The Gro-E Youth Scheme aims to encourage youth entrepreneurship and employment creation, thereby expanding South African production capacity.

 MCEP: The Manufacturing Competitiveness Enhancement Programme (MCEP) aims to assist manufacturing companies with working capital.

 UIF II: The UIF II fund aims to contribute towards sustainable job creation and retention by supporting job creating transactions while providing concessionary funding.

 AFD Green Energy Fund: The AFD Green Energy Fund aims to provide finance to renewable energy and energy efficiency projects of smaller scale, as well as manufacturing of Green products in South Africa.

 Youth Pipeline Development: The Youth Pipeline Development programme aims to improve the readiness of potential applicants and thereby increase their probability for IDC consideration.

 DSCIF: The Downstream Steel Industry Competitiveness Fund (DSCIF) aims to help the struggling steel industry with an interest subsidy that offers discounts to qualifying clients.

 CTCP: The Clothing and Textiles Competitiveness Programme (CTCP) aims to stabilise employment and to improve overall competitiveness in the clothing, textiles, footwear, leather, and leather goods manufacturing industries.  Technology Venture Capital Fund: The Technology Venture Capital Fund aims to provide funding and business support to small companies at early stages of commercialisation (not development) of innovative products, processes and technologies across all sectors.

 Green Tourism Incentive Programme: The Green Tourism Incentive Programme aims to encourage privately-owned tourism enterprises to move towards cleaner and renewable energy sources as well as the efficient utilisation of water.

 SMEs and MIDCAP companies: The IDC aims to assist SMEs and MIDCAP companies to access loan financing for CAPEX, medium and long term working capital.

Additional information on each of these funding initiatives and how to apply for them can be found at https://www.idc.co.za/, by calling 011 269 3000, or by emailing [email protected].

3.5 The Ithala Development Finance Corporation Limited (Ithala)

Guided by KwaZulu-Natal's Provincial Growth and Economic Development Strategy, Ithala’s business- finance activities are keenly focused on offering financial and supportive services within a diverse range of key product groupings; groupings which encompass the complete business sector spectrum, inclusive of service industries, manufacturing, trade, retail and tourism and hospitality.

 Commercial asset finance: The commercial asset finance fund is geared towards assisting Small, Medium and Micro Enterprises (SMMEs) and Co-operatives to purchase assets required in order to operate and generate profit.

 Agriculture and agro-processing finance: The agriculture and agro-processing fund has been developed to support SMMEs and Co-operatives in putting arable land to productive use, the acquisition of livestock, the purchase of equipment, and for the provision of working capital.

 Structured finance: The purpose of structured finance is to provide financial assistance to individuals to obtain shares in existing, successful, medium sized private companies based in KwaZulu-Natal or to enable individuals to pursue management buy outs of companies. It is also aimed at transactions that fall out of the scope of normal financing products where finance needs to be tailored via a combination of a debt and equity instrument. Loan amounts are determined in line with project expenses and repayments are concluded through cash-flow emanating from the identified project.

 Commercial property finance: Commercial property finance involves financing of fixed property used exclusively by owners and/or tenants for trading purposes or for providing professional or other services for financial gain. This includes office and general commercial accommodation.

 Procurement finance: Procurement finance involves financing of businesses that have obtained a contract or order either from the private or public sector, providing a working capital facility for growing manufacturing concerns by means of discounting invoices to their customers and to provide bridging finance and performance guarantees (guarantees linked to bridging finance only) to small contractors in the building and allied trades based on a secured contract.  Micro finance: Micro finance will apply to the lending activities to clients that require short term liquidity funding up to R250, 000. The Product is targeted at small and micro businesses operating their activities on an economical and sustainable scale.

 Franchise finance: Franchise finance involves financing of a new or the acquisition of existing franchises for SMME’s within KZN.

Contact Ithala at http://www.ithala.co.za/ithala/Home or by calling the Ithala Business Finance division on 031 372 1200 to learn more about the SME financing solutions on offer.

3.6 Limpopo Economic Development Agency (LEDA)

LEDA is an economic development agency, following a merger of parastatals under the Department of Economic Development, Environment and Tourism. LEDA has its head office in Lebowakgomo, in Polokwane, and twenty four satellite offices across Limpopo municipalities.

Funding of between R20 000 and R10 million is also provided to small businesses in all sectors excluding primary agriculture.

Find out more about the funding options that LEDA offers by calling 015 633 4700, emailing [email protected], or visiting http://www.lieda.co.za/Wordpress/.

3.7 The National Empowerment Fund (NEF)

The NEF is a driver and thought-leader in promoting and facilitating black economic participation by providing financial and non-financial support to black empowered businesses, and by promoting a culture of savings and investment among black people.

The seven NEF funds are:

 Women Empowerment Fund (WEF): 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.

 iMbewu Fund: The iMbewu Fund is designed to support black entrepreneurs wishing to start new businesses as well support existing black-owned enterprises with expansion capital. The Fund supports these entities by offering debt, quasi-equity and equity finance products with the funding threshold ranging from a minimum of R250 000 to a maximum of R15 million.

 uMnotho Fund: The uMnotho Fund is designed to improve access to B-BBEE capital and has five products: Acquisition Finance, Project Finance, Expansion Finance, Capital Markets Fund, and Liquidity and Warehousing. These products provide capital to black-owned and managed enterprises, black entrepreneurs who are buying equity shares in established black and white owned enterprises, starting new ventures, expanding existing businesses and BEE businesses that are or wish to be listed on the JSE.  Rural & Community Development Fund: The aim of the Rural and Community Development Fund is provide funding to aspiring rural entrepreneurs and to facilitate skills transfer and operational involvement by community groups thereby promoting social and economic upliftment in pursuant of the NEF Mandate.

 Strategic Projects Fund: The Strategic Projects Fund is a unit of the NEF established with a mandate to increase the participation of black people in early-stage projects. The Fund is aligned to national Government policy, and seeks competitive opportunity for the South African economy and the inclusion of black participation in opportunities at the outset of projects, as opposed to doing so during equity closure.

 Arts & Culture Venture Capital Fund: The Arts and Culture Venture Capital Fund is designed to promote and develop the arts and culture sector by providing affordable loans to start and/or expand small businesses. It is an important source of finance for start-up entities and for companies that have limited operating history which do not have access to capital markets. The Fund will assist businesses with potential to be self-sustainable and not rely on government for grant funding.

 Tourism Transformation Fund: The Tourism Transformation Fund (TTF) is a dedicated capital investment funding mechanism established by the Department of Tourism in collaboration with the National Empowerment Fund (NEF) and focuses specifically on financial support for black investors and communities investing in capital projects in the tourism sector.

Detailed information about the funds above as well as application forms can be found on the NEF website at https://www.nefcorp.co.za/. The NEF can also be contacted by calling 0861 843 633, and applications for funding can be sent to [email protected].

3.8 North West Development Corporation (NWDC)

The North West Province is the ideal place for commercial ventures – and the North West Development Corporation guides the way as a valuable business partner.

The NWDC’s dedicated Small Business Development (SBD) Unit supports small business. The team offers assistance and advice to small business owners and offers assistance to entrepreneurs wishing to register their own business or cooperative. The NWDC offers the following small business support services:

 Facilitation of Financial Assistance

 Facilitation of Training

 Registration of Companies and Cooperatives

 Amendment of private companies

Visit http://nwdc.co.za/, call 018 381 3663, or email [email protected] to find out about the financial assistance options available through the NWDC. 3.9 Small Enterprise Finance Agency (sefa)

Sefa was established in 2012 as a result of the merger of South African Micro Apex Fund, Khula Enterprise Finance Ltd and the small business activities of the IDC. Sefa aims to foster the establishment, survival and growth of SMMEs and contribute towards poverty alleviation and job creation.

Sefa’s funding services can be understood in terms of two main products:

 Direct Lending Products: These are loans that sefa provides directly to Small and Medium-sized Enterprises as well as Co-operatives operating in all sectors of the economy. The facilities range from a minimum of R50 000 to a maximum of R5 million.

 Wholesale Lending Products: Through its wholesale lending, sefa provides facilities (debt/equity) to intermediaries, joint venture, partnerships (Specialised Funds) and other collaborative relationships to extend sefa’s reach of making funding available to small businesses across South Africa. The target market is survivalists, micro, small and medium businesses including co-operatives (SMMEs) falling in the following funding gaps. Survivalists and microenterprises are eligible for loans between R500 and R50 000. Small Enterprises are eligible for loans between R50 000 and R1 million. Medium enterprises are eligible for loans between R1 million and R5 million.

Sefa offers easy access to finance in an efficient and sustainable way, to SMME's throughout South Africa. To apply for a loan or find out more about the available products, visit http://www.sefa.org.za/, call 012 748 9600, or email [email protected].

4. Private Investors/Fund Managers

4.1 Angel Investment Network

South African entrepreneurs looking to finance their business ventures through traditional lending routes will often be frustrated and discouraged. Unlike banks or other financial institutions, angel investors are willing to take a chance and invest money (often small amounts) in high-risk businesses, with the hopes of gaining high returns within a set period of time (usually five to ten years).

Recently, angel investments and venture capital funds have become more viable options for business owners seeking financing. Angel investors step in at the beginning phase of business development, often providing seed capital (smaller funding amounts) for the business to operate and grow. Venture capitalists are more likely to invest money once the business is established, providing greater monetary amounts in return for shares in the business, and sometimes a role in the company, usually at the board level. After a period of three to seven years, venture capitalists usually sell their shares, either to the original owner, or to another investor. Angel investors and venture capitalists normally expect a 10 to 30 percent return on their investment.

Connect with potential angel investors and new business entrepreneurs on the Angel Investment Network, operating in countries all around the world by visiting https://www.investmentnetwork.co.za/.

4.2 Ata Capital

Ata Capital (Proprietary) Limited is a fund management company established to carry out the business of attracting and managing private and institutional investor capital. The company is majority black- owned and black-managed and was founded in 2012 by Lelo Rantloane, together with the Harris Family Office, who have a passion for building new businesses. The company also has a significant broad-based black shareholding.

Ata Capital’s primary investment focus is on non-traditional asset classes that deliver a unique proposition and superior returns to investors. Ata Capital has four funds under management:

 Ata Fund I: Ata Fund I is a B-BBEE Value Fund that seeks to drive superior long-term returns for its investors through identifying deep-value BEE investment opportunities, while unlocking active capital for B-BBEE Investors. The fund is fully invested across 6 investments.

 Ata Fund II: Following the same mandate as Ata Fund I, Ata Fund II is a BEE Value Fund aimed at providing liquidity into the BEE Market and liberating active capital for BEE Investors. The fund is closed for further commitments, and is currently invested across 6 investments.

 Ata Fund III: Ata Fund III is a BEE Value Fund, with a focus on primary and secondary BEE deal opportunities. It will leverage off the tested investment techniques applied in its predecessor funds to identify deep-value investment opportunities. This fund is currently inviting commitments.

 Ata Resource Fund I: Ata Resources Fund I is an alternative mining finance and private equity fund focused on offering innovative financing solutions for junior mining and small to mid-tier production projects in sub-Saharan Africa. This fund is currently inviting commitments.

More information about the funds can be found using the links provided, or by visiting http://atacapital.co.za/, calling 011 321 1636, or emailing Ata Capital at [email protected].

4.3 Business Partners Limited

BUSINESS/PARTNERS, has always believed that entrepreneurship is the most aspirational human endeavour of all. This very belief led to the establishment of their business, over 35+ years ago, to facilitate entrepreneurship through a comprehensive service offering of business finance, mentorship, technical assistance, and business premises to entrepreneurs in the small and medium enterprise (SME) space in South Africa, Kenya, Malawi, Namibia, Rwanda, Uganda, and Zambia.

The core of their focus is providing entrepreneurs with finance for their formal business. They structure unique, individualised financing solutions using shareholders’ loans, equity, royalties and term loans – or any combination of these.

The company’s finance solutions are as follows:

4.3.1 General finance

BUSINESS/PARTNERS considers funding for all entrepreneurs who have a viable formal business and who require financing for expansion, working capital, equipment, takeovers, or management buy-outs. Each application is considered on its merits and on the potential profitability of the business. The most important criteria they look at are the skills, experience and industry knowledge of the entrepreneur (or entrepreneurs), and the market need for the business' products or services.

4.3.2 Brands and Franchise Fund

The franchise industry contributes approximately 11.6% to the total GDP of the country, and as such, forms a significant part of the country’s overall economy. Resting on the backbone of their extensive experience in financing franchised business, BUSINESS/PARTNERS’ dedicated Franchise Fund affords opportunities to existing and aspiring entrepreneurs to own and expand their franchises through finance and mentorship.

4.3.3 Education SME Fund

Education in South Africa remains a major challenge and has had a direct impact on the current skills shortage experienced throughout the country.

Through their Education SME Fund, BUSINESS/PARTNERS aims to assist in alleviating this challenge by providing existing and aspiring entrepreneurs in this industry with finance and support to start or expand education facilities. With this support they aim to contribute to the increase in opportunities available for aspiring learners and in turn increase their knowledge and skillset. The objective of this fund is to provide finance and mentorship to for-profit enterprises that are in the business of knowledge and skills transfer across all industries.

4.3.4 Green Fund

BUSINESS/PARTNERS recognises the benefit that businesses in the green industries can bring to the country. It is for this reason their Green Fund is aimed at financing and supporting sustainable businesses and projects which seek to positively impact on the environment and simultaneously create wealth and jobs.

BUSINESS/PARTNERS seeks to finance businesses which actively develop, manufacture and provide goods and services aimed at 'saving the planet', as well as those businesses that are 'doing the right thing' by implementing measures and/or technology which reduce their adverse impact on the environment.

4.3.5 Manufacturing Fund

Manufacturing is a wealth-producing sector in South Africa and the country’s diversified manufacturing industry needs to be supported in order to create long-term economic growth. BUSINESS/PARTNERS believes that a stimulated manufacturing sector will have a spin-off effect on businesses operating within other sectors, such as the service industry, and will result in a positive boost for the economy.

Their Manufacturing Fund aims to deliver finance in a commercially sustainable manner that is specifically targeted to meet the financing and developmental needs of SMEs within this sector.

4.3.6 Property Fund

Their Property Fund caters to entrepreneurs with a viable business who want to refinance or purchase their own premises, but may have limited capital or security to contribute, or may not want to compromise the business’ cash resources for the deposit. In most cases, conventional financiers require a cash deposit before considering financing a property deal. The deposit amount depends on the risk appetite of the financier and deposits of up to 50% may be required. BUSINESS/PARTNERS, however, allows the entrepreneur a choice of different financing options and are able to structure the deal by advancing up to 110% of the financing required, subject to terms and conditions.

4.3.7 Property Joint Venture Fund

For entrepreneurs looking to add a property component to their investment portfolio, multi-tenanted properties are attractive and viable options, as they provide both capital appreciation and a rental income.

BUSINESS/PARTNERS co-invests in multi-tenanted property projects mainly in two instances. Firstly, when a potential investor is unable or unwilling to invest the full deposit (equity) required by a commercial lending institution. Secondly, where a viable property investment has been over-geared and needs a restructuring of the existing debt, converting debt finance to equity finance.

4.3.8 Venture Fund

Small businesses are important innovators, continually bringing new products to the market. Yet, there is very little support and limited access to finance for entrepreneurs in the innovation space. BUSINESS/PARTNERS recognises the potential benefit that innovative and high-risk growth enterprises can bring to the country, and it is for this reason that their Venture Fund is aimed at financing high impact entrepreneurs.

4.3.9 Women in Business Fund

Their Women in Business Fund aims to afford women entrepreneurs a fair and equal opportunity to start, expand or purchase an existing business. Through the fund BUSINESS/PARTNERS aims to increase access to finance for women entrepreneurs; invest in commercially viable women-owned businesses; facilitate the growth and expansion of women-owned businesses; contribute towards an increase in the number of successful women entrepreneurs and inspire young females to choose entrepreneurship; and facilitate the creation of new jobs.

To apply for any of the funding options above, or to find out more information about these options, visit https://www.businesspartners.co.za/en-za, email [email protected], or call 011 713 6600.

4.4 Centrafin

Centrafin prides themselves on providing companies with the financial freedom to pursue growth opportunities in the technological landscape – thus removing barriers to entry as a result of the economic climate and cash flow restrictions or procedures.

Centrafin provides the following business solutions in the following areas: operating leases, financial leases, instalment sales, managed services, green solutions, plant & equipment, and insurance. For more information on how to apply, visit http://centrafin.co.za/, email [email protected], or call 011 654 6460.

4.5 Collins Private Equity Holdings

Arising from its activities in the property sector, the Collins Group also invested in non-property related transactions and interests in the automotive, battery, pharmaceutical and financial sectors. Following the success of these investments, in August 2004 the non-property assets were formalised into a new business called Collins Private Equity.

Collins Private Equity is based in Durban, but is involved in transactions throughout South Africa. Investment amounts can go up to a maximum of R25 million.

For more information, contact the Collins Group at http://www.collinsgroup.co.za/, or by calling 031 536 8004, or emailing [email protected].

4.6 Edge Growth

The most established ESD Fund Manager in the market, Edge currently manages 3 different funds and over half a billion Rands of ESD investments for clients who want to own their ESD strategies but outsource the non-core activity of fund management. For clients with ESD budgets in excess of R50 million, Edge develops an ESD strategy and set up an appropriate fund vehicle that will support their business objectives whilst delivering the maximum possible number of B-BBEE points.

Their clients provide fund capital in the form of investments, grants or loans and receive their ED points immediately on deposit. Their Fund Management team then manages the fund at a portfolio level using industry best practice – each investment is identified and screened against the fund mandate and undergoes thorough feasibility, due diligence and professional Investment Committee approval.

 The Vumela ESD Fund: The Vumela Fund is a R588 million Social Venture Capital Fund that Edge Growth manages on behalf of the Vumela Trustees. The fund is a business with the objective of creating stakeholder value by investing in, growing and divesting of SMEs and providing value added growth support services to both investee and non-investee companies.

 The ASISA ESD Fund: The ASISA Fund was established in March 2013 on behalf of South Africa’s savings and investment industry.The fund places specific focus on Enterprise and Supplier Development and is structured as a Category A beneficiary in line with the Financial Sector Code (FSC) requirements, making it an optimal B-BBEE investment solution for funders.

 The Edge Action ESD Fund: Established in 2011, Edge Action is Edge Growth’s own in-house Enterprise and Supplier development fund. Its purpose is to provide companies with ESD budgets of less than R50 million with a pooled but effective way to implement their ESD strategy, and bespoke solutions to corporates with budgets greater than R50 million. Both approaches maximise socio-economic impact through responsible investment and ensure B-BBEE code compliance.

 The Edge Venture Fund: The Edge Venture Fund is a growth capital impact fund investing in innovative, scale up businesses in South Africa. We specialise in combining funding and critical acceleration services, through our 10X-e programme, to help businesses close the gap to exceptional growth. The fund is managed by Edge Growth, a leading fund manager that has been supporting SMEs since 2008. Find out more about Edge Growth by visiting their website at https://www.edgegrowth.com/, calling 010 001 3715, or contacting them using the contact form on their website.

4.7 First Asset Finance

First Asset Finance offers finance solutions across all industries, in conjunction with reputable suppliers across South Africa. They pride themselves on providing a professional and personalized service to all their customers.

They finance assets across all industries through reputable suppliers across South Africa. Their business development executives are professional and provide a personalised service to both customer and suppliers. Their approach is dynamic and flexible.

First Asset Finance’s products are restricted to operating rentals, “rent-to-own”, instalment sales, and secured loans. They operate within the medical, printing, engineering, manufacturing, technology, marine, aviation, construction, and energy industries. Contact First Asset Finance to find out more information by visiting http://www.faf.co.za or calling 0800 212 537.

4.8 GroFin

GroFin is a pioneering private development finance institution specialised in financing and supporting small and growing businesses (SGBs) across Africa and the Middle East by combining medium term loan capital and value-added business support.

Depending on an entrepreneur’s requirements and the stage of their relationship with GroFin, support of GroFin STEP may take the form of any of these professional services:

 Business diagnostic

 Business planning

 Business plan implementation

 Business formalisation

 Growth support

These are enabled by the GroFin STEP programme that has been developed in-house by GroFin’s trusted business and investment professionals, based on their experience of helping 8,800+ entrepreneurs grow their businesses.

The GroFin STEP programme goes hand-in-hand with the finance provided to entrepreneurs, to ensure that they can make the best use of the funds to scale up their business. As such, entrepreneurs will be provided with the services of a dedicated Investment Manager who understands the top 10 reasons why businesses tend to fail during their first five years in operation – and will help their business to counter these challenges and embark on long-term growth. GroFin’s Investment Managers are certified by the Association of Accredited Small Business Consultants (AASBC), which provides the only industry accreditation for small business consultants. GroFin works with entrepreneurs to develop implementable Business Support Action Plans, both before and after financing their business, highlighting areas where support is needed and identifying the steps and timelines for delivering such support.

Visit GroFin’s website at http://www.grofin.com/language/en/home/, call them on 012 998 8280, or email them on [email protected] to find out more about GroFin STEP and other financial solutions.

4.9 Grovest

The Grovest Group, which included Venture Capital Management Services (“VCMS”) was founded in 2013 by Jeff Miller, Malcolm Segal and Jeff Livingstone who identified two challenges in the market - the need for funding for entrepreneurs and the lack of incentives for investors to support these entrepreneurs.

In 2018 VCMS changed its name to Grovest Corporate Advisory, and is today the largest, outsourced Section 12J fund administrator in South Africa and continues to play a dominant role in lobbing all stakeholders for meaningful positive changes to this growing asset class.

Section 12J of the Income Tax Act No. 58 of 1962 was legislated by the South African Government to encourage South African taxpayers to invest in local companies and receive a 100% tax deduction of the value of their investment. The investor in return receives a Section 12J tax certificate and Venture Capital shares. The invested amount can be deducted from the investor’s taxable income in the year the investment is made. A company must receive approval from SARS to become an approved Venture Capital Company (VCC) under Section 12J. The approved VCC provides the opportunity for retail investors to invest in Qualifying Companies (QCs).

The funds raised are deployed into Qualifying Companies after the investments have been received by the Venture Capital Company. This investment opportunity is beneficial for all investors, but more so for those within a higher tax bracket as it reduces their taxable income significantly.

To find out more about the qualifying criteria for an investee and how to apply, call 011 262 6433, visit https://www.grovest.co.za/, or email [email protected].

4.10 Horizon Equity

Horizon Equity Partners is one of South Africa’s longest established private equity firms with an investment track record dating back to 1992. Our executives have collectively initiated and managed equity investments in over 40 companies across a wide range of industry sectors, but with an emphasis on technology, media & telecommunications.

We specialise in the provision of growth capital and buyout capital to small and medium sized enterprises at all stages of development except start-up.

For more information on the specific financial services Horizon Equity provides, visit their website at http://www.horizonequity.co.za/, call 011 502 6940, or email [email protected].

4.11 Imbewu Capital Partners

Imbewu (which means “seed” in Zulu) Capital Partners (Pty) Ltd (“Imbewu”) is a black-owned and controlled private equity and investment holding company. Imbewu invests, structures and raises funding for management buy outs, leveraged buy outs and strategic Black Economic Empowerment (BEE) transactions in partnership with management teams and shareholders.

The Imbewu management team has extensive experience in private equity and investment banking. The executives have the expertise required to identify attractive investment opportunities, design and implement appropriate transaction structures and add value to the underlying investments. The executives have experience in business strategy, implementation of corporate governance guidelines and transformation strategy and have built an extensive business network over the years.

Imbewu has a track record of leading and managing complex equity transactions and consortiums. Imbewu is further strengthened by its non-executive directors who collectively have operated at the highest level in business and have complementary skills and networks.

Visit Imbewu’s website at https://www.imbewucapital.co.za/index.html, call them on 031 566 1484, or email their office at [email protected] for further information on their funding solutions.

4.12 Inspired Evolution

Inspired Evolution is a specialised investment management business and is an Authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act, 2002 with offices in Cape Town, South Africa and regional offices in London, Mauritius, and Nairobi. Inspired Evolution offers a dedicated team with a proven track record in leading clean energy infrastructure-type development and project finance investments, as well as energy and resource efficiency growth investments across sub-Saharan Africa.

Inspired Evolution’s mission is to deliver superior risk-adjusted returns to its investors through active investment advisory leadership and financial innovation. Inspired Evolution’s specialised sector return- focused approach and demonstrated track record, combined with its best-in-class environmental, social and governance (ESG) investment management approach, differentiates it amongst African specialised fund managers.

Inspired Evolution offers measured and sustainable development outcomes across our portfolio of fund investments using a suite of composite best-practice international indicators relevant to their specialised investment themes. These attributes contribute towards their goal of accelerating clean energy access and promoting resource efficiency in contribution to a brighter future for Africa and its people.

Further information on Inspired Evolution’s investment activity and approach to funding can be found at https://inspiredevolution.co.za/, or by emailing [email protected], or calling 021 702 1290.

4.13 Knife Capital

Knife Capital is an independent growth equity investment firm focusing on innovation-driven ventures with proven traction. By leveraging knowledge, networks & funding, we accelerate the international expansion of entrepreneurial businesses that achieved a product/market fit in a beachhead market. Knife Capital has offices in Cape Town and London.

Knife Capital:

 Enables their portfolio of innovation-driven businesses to achieve scalability across different markets by optimising the business model and customer acquisition process.

 Assists businesses with transition to international growth by providing market access that expands customer validation to other countries.

 Selects entrepreneurs who have achieved proven traction with product/ market fit in a beachhead market. This shows that the product solves a real need as it resonates with its target market in at least one country.

To learn about Knife Capital’s investment criteria for entrepreneurs and apply for funding, call 021 555 1933, email [email protected], or visit the website at https://www.knifecap.com/.

4.14 Lulalend

Lulalend is more than a company. It’s a belief in the power of small business, making a difference, building a better solution and striving for excellence. Lulalend works hard to empower businesses across South Africa with the funds they need to grow.

Lulalend wants to grow small businesses. They deliver business funding using their cutting-edge Lulalend scoring technology, which takes into account the health of an entrepreneur’s business together with their personal credit score. This means they are able to give an entrepreneur’s business the best possible funding. Through Lulalend, entrepreneurs can get access to between R20 000 – R1 000 000 in funding.

Obtaining funding through Lulalend is a three-step process – apply online for free, receive a decision, and get funded. Find out more information about this process and the associated requirements by visiting https://www.lulalend.co.za/, calling 087 943 2381, or emailing [email protected].

4.15 Metier

Metier is a proven leader in the area of private equity, alternative assets and related advisory services. The company was founded in 2004 and raised South Africa’s largest private equity fund in terms of third party local commitments. It has an established team which ranks amongst the largest and most experienced in the industry. Metier has a strong track record in private equity investing and selective M&A advice that confirms its leadership status.

Metier was designed to remain free from public ownership, to promote a partnership-style culture and to use a long-term investment approach that is sceptical of fast money. The Metier founders have worked together for three decades favouring a culture that emphasises hard work, intellectual freedom and solid family values. Metier’s experience over the years has helped the company to build an institutional memory that allows them to discern the difference between fanciful promises and real returns. They have had the privilege of working with talented entrepreneurs and business leaders, many of whom have the potential to dominate their sector.

Among other financial ventures, the company has established two Capital Growth Funds – Capital Growth Fund I and Capital Growth Fund II. Find out more about these funds by calling 011 268 4000, emailing [email protected], or visiting Metier’s website at http://www.metier.co.za/.

4.16 Merchant West

Merchant West’s focus is on providing flexible, innovative solutions that suit an entrepreneur’s business needs. Their mission is to be the leading specialist financial services company, providing clients with the best possible service and solutions. To this end, they make a point of understanding an entrepreneur’s business, looking past traditional factors and providing an entrepreneur with a tailor-made solution that is specifically suited to their unique requirements. Merchant West provides the following financing solutions:

 Ariva: Vehicle Private Rental is cheaper than bank finance. You basically pay for usage. Private Rental is shorter than long term loans, allowing you to upgrade to new models and technology more often.

 Capital Markets: Forex, Money Market, and short-term financing solutions to assist both individuals and companies to enhance Cash Management, Risk Management and Liquidity.

 Working Capital Solutions: Our range of debtor finance solutions are designed to help you increase your working capital and improve day to day cash flow through effective management and planning.

 Asset Finance: We pride ourselves on our reputation as a fast, efficient and committed funder in our elected industries and offer tailor-made asset financing for equipment unique to your particular area of business.

Visit https://merchantwest.co.za/ or call 011 305 9400 to find out more information on Merchant West’s financing solutions.

4.16 Musa Capital

Musa Capital specialises in private equity investment and financial advisory services throughout Africa. It is a boutique merchant-banking firm that provides opportunities for private equity investment and offers advisory services throughout Africa.

With expertise and transaction experience in asset management, property development, structured finance and investment banking advisory services. Musa Capital is focused on private equity investment in Africa and has principally engaged in the pursuit of executing profitable transactions on the African continent, thereby creating wealth for its clients, investor partners and portfolio company principals. Musa Capital specialises in catalytic investment to ensure that investing in Africa triggers sustainable wealth creation both for Africa and its investment partners. They lend a helping hand to mid-cap size SME’s in the form of private equity capital that will provide them with the means to grow, develop, and establish themselves as a viable and successful provider of a particular service.

Musa Capital’s assistance does not halt at the provision of capital as they will accompany entrepreneurs through their business processes; advising and guiding them all the way. By nurturing their business Musa Capital will be playing a substantial hands-on role in delivering a much-needed product or service to a specific area that is in need.

For more information on the support Musa Capital provides entrepreneurs and SMEs, call the company on 011 771 6300, email them at [email protected], or visit https://www.musacapital.com/.

4.17 Nodus

Nodus is an independent investment banking business specialising in mergers and acquisitions, buy- outs and private equity.

Nodus is an established group, with a successful track record dating back to our founding in 2003. They have assembled a team of professional, highly skilled and entrepreneurial-minded individuals who aim to deliver in everything that they do, no matter what. They fundamentally understand that their success is directly linked to their clients and fellow investors. They are dedicated to unlocking long-term value for their clients and fellow investors in ways that are smart, authentic, interactive and likely to develop lasting relationships.

 Nodus Capital: The Nodus Capital business is focussed on mergers and acquisitions, buy-outs and the raising of capital. They initiate, evaluate, structure and facilitate the implementation and conclusion of corporate transactions and the raising of capital.

 Nodus Equity: Nodus Equity is an open-ended private equity investment company focussed on medium-sized enterprises. Their single-minded aim is to achieve superior returns by means of strict investment criteria, leveraged capital and active investee support.

To find out more about Nodus’ financing solutions, visit http://nodus.co.za/, email [email protected], or call 011 327 6907.

4.18 Omidyar Network

Omidyar Network starts from a fundamental belief: People are inherently capable, but they often lack opportunity. They believe that if they invest in people, through opportunity, they will create positive returns for themselves, their families, and the world at large.

Omidyar Network also believes that businesses can be a powerful force for good. Pierre Omidyar experienced this firsthand as the founder of eBay. Just as eBay created the opportunity for millions of people to start their own businesses, Omidyar Network believes market forces can be a potent driver for positive social change. That’s why they invest in both for-profit businesses and nonprofit organizations, whose complementary roles can advance entire sectors. Omidyar Network invests in entrepreneurs who share their commitment to advancing social good at the pace and scale the world needs today. They are focused on six key areas they believe are building blocks for prosperous, stable, and open societies: Digital Identity, Education, Emerging Tech, Financial Inclusion, Governance & Citizen Engagement, and Property Rights.

Contact Omidyar Network by visiting https://www.omidyar.com/ or emailing [email protected] to find out more information.

4.19 Silvertree Internet Holdings

Silvertree Internet Holdings uses tech to reach African consumers. They are a holding and operating company, based in South Africa, that conceives, launches, operates and invests in early- and mid-stage companies targeting the South African and Sub-Saharan African markets.

They like business models that are simple or proven, with clear revenue streams, that take advantage of the mobile and Internet future, and that target growing markets and industries. Their operating brands and companies are organised into verticals by business model. They seek large, growing but inefficient verticals, and use tech to leapfrog old ways of reaching consumers.

Silvertree Internet Holdings focuses on capital efficiency and operational discipline. Their brands are growing rapidly, but they also continue to build new businesses, and to invest into and acquire existing companies. Through operational synergies and sharing best practices, they are stronger than a simple sum of parts.

Silvertree Internet Holdings builds real businesses — and that means more than merely providing office space and some token equity. In addition to substantial equity investment, and depending on the needs of an entrepreneur’s business, they can help with some or all of:

 Access to large-scale investors for rapid growth

 Professional management or management support

 Business plan and model development, consulting and/or feedback

 Marketing, logistics, IT, talent management and other support functions.

Silvertree Investment Holdings is interested in strong concepts with the foundations of a good team, meeting their investment criteria, and with the potential to rapidly reach scale. Find out more information by visiting https://silvertree.holdings/, emailing [email protected], or calling 021 286 1666.

4.20 Spartan

Spartan has been financing businesses for over since 1981. As an independent alternative financier, they only finance small & mid-sized businesses. Spartan backs entrepreneurs with growth finance, asset finance & working capital finance, and are the only financiers in South Africa that offer 100% Software Finance.

 Growth finance: Spartan’s Growth Finance is for SMEs that are beyond the survival stage and are well into the growth phase of their lives.  Specialised asset finance: Spartan’s Specialised Asset Finance solutions help entrepreneurs finance machinery, specialised equipment, technology, software, office fit-out, etc.

 Working capital finance: Spartan’s Working Capital Finance is a solution that assists businesses with solving cash flow challenges. They provide cash flow financing via either Medium Term Loans or Bridging Finance for temporary needs.

Spartan is solely focused on helping small and growing businesses. Find out more about the funding criteria and how to apply at https://www.spartan.co.za/ or by calling 011 886 0922.

4.21 Utho Capital

Utho group of companies comprises of Utho Capital, Utho Capital Fund Managers, and Utho Conference and Event Management.

The Utho SME Infrastructure Fund was established by Utho Capital Fund Managers (Pty) Ltd. The fund achieved a first closing in April 2011 with commitments from the Industrial Development Corporation (“IDC”), the Small Enterprise Finance Agency (“sefa” previously known as Sefa) and the founder Utho Capital. The Fund traded at that level and fully utilised funds available by the end of 2016.

The Fund seeks to achieve long term capital gains by investing in high growth Small and Medium Enterprises (“SMEs”) involved in “infrastructure development” which encompasses various types of businesses involved in construction, material suppliers, transport, logistics, power, renewable energy and property development in South Africa.

More information on the services offered by Utho Capital (including structured finance and project finance) can be found at http://utho.co.za/, by emailing [email protected], or by calling 011 234 1370.

4.22 Zimele

Zimele was started by Anglo American in 1989 to assist historically disadvantaged South Africans to own and run their businesses. Zimele is about creating sustainability in business. It’s focused on building sustainable livelihoods in its host communities and on strengthening relationships to create synergies within Anglo American and with broader mining industry partners.

What Zimele does is help create something sustainable for the people living around its mines. It’s there to support them in growing their businesses. This goes hand-in-hand with its new sustainability strategy. Zimele is playing its part to create jobs and grow small businesses. Its hubs focus on supporting SMMEs and the youth through up-front mentorship, followed by funding opportunities.

Zimele offers the following programmes:

 Zimele Enterprise Development programme: Helps motivated and committed entrepreneurs to strengthen their businesses through mentorship training and access to funding needed to grow.

 Zimele Supplier Development programme: Helps small or medium-sized business owners who want to improve, grow or diversify their business, and create jobs by responding to the procurement needs of large local buyers.  Zimele Youth Development programme: Helps young people identify opportunities towards creating small businesses or becoming employable.

To apply for any of the enterprise development programmes listed above or to find out more information about them, visit https://southafrica.angloamerican.com/ or call 011 638 9111.

5. Micro (to small) Financiers

5.1 4Di Capital (Pty) Ltd

4Di Capital is an independent venture capital fund manager based in South Africa’s “Silicon Cape”, specialising in high-growth technology venture opportunities, at the seed, early-and growth-funding stages. The fund manager has offices in Cape Town, South Africa and Atlanta, Georgia, U.S.A. and funds are managed by the GP partnership team of Anton van Vlaanderen, Douglas Cherry, Erik van Vlaanderen, Justin Stanford and Laurie Olivier.

4Di looks for founder teams with hungry passion, commitment, domain expertise and deep insights into the large market problems they wish to solve with their technology solutions.

 4Di Exponential Tech Fund I: The 4Di Exponential Tech Fund I is 4Di Capital’s third fund and opened in 2016 with MMI Holdings as the anchor LP. The fund’s mandate includes seed, early- and growth- stage investments into South African and African scalable technology opportunities in the broader general wellness, FinTech, InsurTech and HealthTech verticals, particularly those with ambitions to scale their operations into international markets.

While the 4Di Capital team also had a 4Di Capital Fund I, which launched in 2011, it has now been closed. More information on the Exponential Tech Fund I can be found at https://www.4dicapital.com/ or by calling 021 659 2000.

5.2 AngelHub Ventures

AngelHub Ventures started out in 2011 as the first angel group in SA, which then matured into an early stage Venture Capital firm in January 2014. Operating out of Stellenbosch in South Africa and backed by two family offices, they are passionate about early stage investments in (South) Africa. Being entrepreneurial, they thoroughly understand the challenges and changes that their founders face – which is why they back entrepreneurs in any way they can. Most importantly, they believe in building great businesses and they are in it for the long haul.

AngelHub Ventures invests in highly scalable businesses with strong leadership, customer traction, a viable business model, and an executable business plan. Considering the early stage of the ventures, AngelHub Ventures usually takes a meaningful minority equity stake. The cash goes straight into the business, they do not buy founders out – and they always invest in the holding company where the intellectual property lies. Their first-round investments range from R1 million to R10 million.

All investments are milestone based and AngelHub Ventures has the ability to provide follow-on funding. More information on how to acquire funding can be found by emailing [email protected], or visiting http://www.angelhubventures.com/. 5.3 i-Cubed Capital i-Cubed Capital is a team of “Investorpreneurs” – Investment Specialists and Entrepreneurs. They invest in businesses positioned for growth, offer investments in unit trusts managed by experienced fund managers, and collaborate and invest with well-established local and global business partners.

 Listed Equity: We provide a bouquet of funds for clients, ranging from unit trusts to investment funds for retirement, including savings plans with tax incentives. We assess fund manager performances by reviewing fact sheets and provide our clients with a variety of options to meet their investment objectives.

 Private Equity & Venture Capital: We acquire equity in companies that are positioned for growth and create wealth for our shareholders. Shareholders can claim up to 45% of their investment from SARS when investing through our venture capital fund. Our team of investment specialist and entrepreneurs evaluate business opportunities that provide medium to long term growth.

More information on the investments i-Cubed Capital makes can be found at http://icubedcapital.co.za/, or by contacting i-Cubed Capital by emailing [email protected] or by calling 011 888 0027.

5.4 IDF Capital

IDF Capital was established on 01 March 2008, to exploit the opportunity of profitably investing in the entrepreneurial SME landscape by providing appropriate financial and non-financial products and support to unlock value of the SME sector. IDF Capital offers the following financial solutions to entrepreneurs:

 Cash-Flow Financing: Cash-Flow Financing is a form of bridging finance which allows businesses to manage their cash-flow and working capital more efficiently.

 Term-Debt Financing: Term-Debt Financing allows investing in asset finance, contract finance and franchises.

 Venture Capital: Venture Capital is capital invested in early stage projects with a substantial element of risk, typically ICT businesses when they are at their early stages.

 Private Equity: Private Equity is finance for established firms that can benefit greatly from change in management and an injection of new capital.

The qualifying criteria and required documentation for the funding solutions above are available by visiting http://www.idf.co.za/, emailing [email protected], or calling IDF Capital’s SME line on 086 143 3763.

5.5 The Masisizane Fund

The Masisizane Fund is a non-profit funding entity. The fund is an Old Mutual initiative that was established in 2007 in consultation with the National Treasury of South Africa following the closure of the Unclaimed Share Schemes Trust. Today, the Masisizane Fund provides Enterprise Development to small, medium and micro enterprises (SMME's), via two core channels:

1. Developing Financing

2. Business Support

More information on these two core channels, and how to apply, can be found by calling 011 217 1746 or emailing [email protected]. You can also visit the Masisizane Fund webpage at https://www.oldmutual.co.za/masisizane/index.html.

5.6 Merchant Capital

Merchant Capital was established in 2012 as an alternative provider of working capital, designed specifically for retail SMES in South Africa.

Merchant Capital started in response to the high failure rate among small businesses caused by lack of funding. Their vision is to become the leading provider of disruptive financial services products to small and medium businesses in emerging markets.

 Cash advances: The Merchant Capital process follows a unique PAY-AS-YOU-TRADE system, ideal for business owners who have a monthly average of over R30 000 in card sales and have been operating for 12 months.

 Business funding: Business funding simply refers to the various funding options available to an entrepreneur including bank finance, an overdraft, a loan, etc.

 Working capital: Working capital is like air for a business. It is the cash-on-hand, which is used by the business in its day-to-day trade and operations.

 Alternative business loans: Alternative business loans include short-term business loans, unsecured business loans, asset finance, and merchant cash advance.

To apply for funding or find out more about Merchant Capital, visit https://www.merchantcapital.co.za/, email [email protected], or call 0861 6227 4825.

5.7 Merchant Factors

Merchant Factors was founded in 1988. Their vision is to offer growing businesses an alternative to traditional bank loans and overdrafts. Today they are leaders in factoring and trade finance.

They pride themselves on innovation and flexibility. They offer local and cross-border trade finance and are able to tailor their facilities to suit most emerging small and medium size businesses. Their clients' turnovers range from R100 000 per month to R15 000 000 per month. Merchant Factors’ financing services are:

 Invoice Finance/Factoring: Factoring supports the cash flow of SMEs, many of whom ordinarily cannot offer their customers credit terms of 30 days and more.  Trade/Stock Finance: Stock or trade finance is a funding mechanism designed to assist in the purchase of stock.

 Bridging Finance: Bridging finance is an asset-backed form of financing used to maintain liquidity while waiting for an anticipated and reasonably expected cash inflow. It is commonly provided for short periods of time, not exceeding nine months.

 Insurance: Merchant Factors partners with one of South Africa's largest insurance brokerages to provide a complete insurance solutions for both short-term cover and life cover.

 Business Rescue Finance: Entrepreneurs enter into a contract with Merchant Factors within business rescue in which they agree to factor their credit sales.

To find out more about the financing solutions Merchant Factors offers, contact Deon Theron at [email protected], visit the company’s website at http://www.mfactors.co.za/index.php, or call 021 466 5244.

5.8 RainFin

RainFin's pioneering online Credit Marketplace enables Borrowers to access affordable debt capital and Investors (Institutional and Retail) to access a new asset class, i.e. Alternative Credit, thereby earning attractive, fixed income returns.

Launched in 2012, in response to the increased cost of traditional lending, RainFin was South Africa's first lending marketplace. RainFin's vision is to remove traditional costs and or barriers for Borrowers and Investors through innovative technology, creating a truly transparent and fair marketplace.

For more information on how to obtain business funding, call 087 820 5200, email [email protected], or visit https://www.rainfin.com/.

5.9 Real People

Incorporated in 2001, Real People is a purpose-led organisation that is built on a focused portfolio of businesses. These centre on providing responsible finance to individuals and customer-centric debt management solutions to businesses.

DMC Debt Management

DMC is a market leading South African debt collection company specialising in the acquisition and fair resolution of late stage arrear consumer debt. They play an integral role in the credit market by facilitating an affordable yet reasonable resolution to problem debt.

Visit https://www.dmc.co.za/ or call 086 110 1729 to find out more about DMC’s services. Alternatively, visit https://www.realpeoplegroup.co.za/index.php or call 010 245 8000/1.

5.10 ReichmansCapital

ReichmansCapital offers working capital and medium term finance to growing owner-managed businesses, together with prompt, viable and realistic finance solutions to meet business owners' funding and finance needs. Their product offering includes:

5.10.1 Working Capital Finance

 International and local trade finance: International and local trade finance provides the cash flow required to stimulate growth in importing or exporting, manufacturing, trading or wholesale distribution businesses.

 Debtor finance: Receivables finance, or factoring, combines financing with receivables administration.

 Asset-based lending: ReichmansCapital uses a blend of funding products (debtor finance, inventory finance, and asset-based finance) to offer a line of working capital outside of traditional bank facilities.

5.10.2 Medium Term Finance

 Asset and equipment finance: ReichmansCapital finances equipment and vehicles in the manufacturing, engineering, plastics, printing, packaging, earth moving, construction and logistics (forklifts and rigging equipment) industries.

 Specialised growth funding: ReichmansCapital's specialised growth funding solution uses inventory, debtors, equipment and property to provide a viable alternative to equity funding for specific projects.

ReichmansCapital is a member of the Investec Group of Companies. Find out more about their funding at [email protected] or https://www.investec.com/en_za/reichmanscapital/home.html.

5.11 Retail Capital

Since 2011, Retail Capital has provided businesses with innovative, flexible and convenient alternatives to traditional business loans. Being responsible for 50% of the country’s GDP and contributing to over 65% of employment, Retail Capital is devoted to partnering with small to medium sized businesses to grow the South African economy. They are proud to have partnered with more than 5000 SME’s in providing funding of more than R1.25 billion to date.

Retail Capital will fund an entrepreneur’s business, based on their future turnover. Retail Capital partners with their customers, linking payments to business turnover so that they match the cash flow cycles of the business to ensure affordability.

For more information on the funding requirements as well as how to apply for franchise, SME, or unsecure funding, call 0861 17 17 17 or visit https://www.retailcapital.co.za/.

5.12 Royal Fields Finance

Royal Fields Finance is a successful and prominent private company that was started in March 2009 to provide specialised short-term funding to SMEs and start-up ventures. The company focuses on SMEs that are unable to raise funding from banks and other traditional funding institutions because of lack of trading history, security, and risk capital.

The company provides short-term loans of values between R70k and R2.5m. They fund businesses across a wide array of different sectors.

 Working Capital: Royal Fields Finance provides this facility to small businesses temporarily in need of cash.

 Bridging Finance: This is a short-term loan (usually 1 – 6 months) intended to bridge the finance gap between transactions.

 Contract/Project Finance: This facility is intended for borrowers with public / private sector contracts to provide goods and/or services.

 Trade Finance: Royal Fields Finance can provide short-term funding for the importation of goods into South Africa.

 Asset Finance: Royal Fields Finance products are intended to cover IT and office automation, plant and machinery, delivery vehicles, and office furniture.

Learn about who qualifies for this financing by visiting http://www.royalfields.co.za/, call 086 178 9607, or email [email protected].

5.13 WDB Investment holdings

Women’s Development Business (WDB) was established in 1991 by Mrs Zanele Mbeki and a small group of powerful and determined women who wanted to be active participants in the new democratic South Africa. Its vision has always been “to put development resources directly into the hands of South Africa’s ‘unbankable’ women so that they could start their own income-generating activities”.

With seed capital of just R20 000, WDB launched a pilot project in Mpumalanga; providing 50 women with loans of R300 each, which were paid back in full in just three months.

The emergence of WDB was based on the understanding that the utilisation of loans/savings and support services would result in the creation of new jobs, an increase in the average income, the expansion of existing micro-enterprises and improved quality of life for their families.

Visit https://wdbinvestments.co.za/, call 011 341 9900, or email [email protected] for more information on the financial services offered by WDB Investment Holdings.

6. Government Grants and Incentives

The Department of Trade and Industry (the dti) offers a range of incentives and grants geared towards SMMEs. For more information on any of the following grants and incentives, visit the dti’s website at https://www.thedti.gov.za/default.jsp. 6.1 Aquaculture Development and Enhancement Programme (ADEP)

The Aquaculture Development and Enhancement Programme (ADEP) is an incentive programme available to South African registered entities engaged in primary, secondary and ancillary aquaculture activities in both marine and freshwater classified under SIC 132 (fish hatcheries and fish farms) and SIC 301 and 3012 (production, processing and preserving of aquaculture fish). The grant is directly provided to approved applications for new, upgrading or expansion projects.

The programme offers a reimbursable cost-sharing grant of up to a maximum of R30 million qualifying costs in machinery and equipment; bulk infrastructure; owned land and/or buildings; leasehold improvements; and competitiveness improvement activities as outlined in section 8 of the ADEP guidelines.

6.2 Automotive Investment Scheme (AIS)

The Automotive Investment Scheme (AIS) is an incentive designed to grow and develop the automotive sector through investment in new and/ or replacement models and components that will increase plant production volumes, sustain employment and/ or strengthen the automotive value chain.

The enterprises eligible for this scheme are:

 Light motor vehicle manufacturers that have achieved, or can show that they will achieve, a minimum of 50 000 annual units of production per plant, within a period of 3 years

 Component manufacturers that are part of the Original Equipment Manufacturer (OEM) supply chain

 Those that will achieve at least 25% of total entity turnover or R10 million by the end of the first year of commercial production, as part of a light motor vehicle manufacturer supply chain.

6.3 Black Business Supplier Development Programme (BBSDP)

The Black Business Supplier Development Programme (BBSDP) is a cost-sharing grant offered to black- owned small enterprises to assist them to improve their competitiveness and sustainability to become part of the mainstream economy and create employment.

The programme provides grants to a maximum of R1 million:

 R800 000 for tools, machinery and equipment on a 50:50 cost-sharing basis; and  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 an 80:20 cost-sharing basis.

6.4 Business Process Services (BPS) Incentive

The BPS incentive aims to attract investment and create employment in South Africa through offshoring activities. These incentive grants are calculated on the number of projected offshore jobs to be created and is awarded on actual offshore jobs created.

The primary objective of the incentive is to create employment in South Africa through servicing offshore activities. The secondary objectives of the programme include creating employment opportunities for the youth; and contributing to the country’s export revenue from offshoring services.

6.5 Capital Projects Feasibility Programme (CPFP)

The Capital Projects Feasibility Programme (CPFP) is a cost-sharing grant that contributes to the cost of feasibility studies likely to lead to projects that will increase local exports and stimulate the market for South African capital goods and services.

The primary objective of the programme is to facilitate feasibility studies that are likely to lead to high- impact projects which will stimulate value-adding economic activities in South Africa as this will have a greater impact on the country’s industrial policy objectives.

The grant is capped at R8 million to a maximum of 50% of the total costs of the feasibility study for projects outside Africa and 55% of the total costs of the feasibility study for projects in Africa.

6.6 Clothing and Textiles Competitiveness Programme (CTCP)

The Clothing and Textiles Competitiveness Programme (CTCP) is a programme of the Department of Trade and Industry (the dti’s) and forms a core part of the implementation of the Customised Sector Programme (CSP’s) for the Clothing, Textiles, Footwear, Leather & Leather Goods Industries. The CTCP’s main objective is to assist industry in upgrading equipment, process, products and people, re-positioning South Africa to compete effectively against other low cost producing countries.

The CTCP is aimed at structurally changing the Clothing, Textiles, Footwear, Leather & Leather Goods manufacturing industries by providing funding assistance for these sectors to invest in competitiveness improvement interventions.

The CTCP consists of two programmes that are managed by the CTCP Desk within the IDC, namely:

 Production Incentive Programme (PIP)

 Competitiveness Improvement Programme (CIP)

Further information on the CTCP can also be found at http://www.ctcp.co.za/.

6.7 Co-operative Incentive Scheme (CIS)

The Co-operative Incentive Scheme (CIS) is a 100% grant for registered primary co-operatives (a primary co-operative consists of five or more members). The objective of the CIS is to improve the viability and competitiveness of co-operative enterprises by lowering their cost of doing business through an incentive that supports Broad-Based Black Economic Empowerment.

The objectives of the CIS is to:

 Promote co-operatives through the provision of a matching grant;

 Improve the viability and competitiveness of co-operative enterprises by lowering the cost of doing business;

 Assist co-operatives to acquire their start up requirements;

 Build an initial asset base for emerging co-operatives to enable them to leverage other support; and

 Provide an incentive that supports broad-based black economic empowerment.

6.8 Critical Infrastructure Programme (CIP)

The Critical Infrastructure Programme (CIP) aims to leverage investment by supporting infrastructure that is deemed to be critical, thus lowering the cost of doing business. The South African Government is implementing the CIP to stimulate investment growth in line with the National Industrial Policy Framework (NIPF) and Industrial Policy Action Plan (IPAP).

The CIP is a cost-sharing incentive that is available to the approved applicant/s or infrastructure project/s upon the completion of verifiable milestones or as may be approved by the Adjudication Committee. Infrastructure is deemed “critical” to the investment if such investment would not take place without the said infrastructure or the said investment would not operate optimally.

6.9 Export Marketing & Investment Assistance Scheme (EMIA)

The Export Marketing and Investment Assistance (EMIA) scheme develops export markets for South African products and services and to recruit new foreign direct investment into the country.

The main objectives of the scheme are to:

 Provide marketing assistance to develop new export markets and grow existing export markets;

 Assist with the identification of new export markets through market research;

 Assist companies to increase their competitive by supporting patent registrations, quality marks and product marks;  Assist with facilitation to grow FDI through missions and FDI research; and

 Increase the contribution of black-owned businesses and SMMEs to South Africa's economy.

6.10 Film Incentive

The South African Government offers a package of incentives to promote its film production and post- production industry. The incentives consist of:

 The Foreign Film and Television Production and Post-Production incentive to attract foreign- based film productions to shoot on location in South Africa and conduct post-production activities;

 The South African Film and Television Production and Co-Production incentive, which aims to assist local film producers in the production of local content; and

 The South African Emerging Black Filmmakers incentive, a sub-programme of the South African Film and Television Production and Co-production Incentive, which aims to assist local emerging black filmmakers to nurture and grow them to take up big productions and thus contribute towards employment creation.

6.11 Global Business Services Incentive (GBS)

The primary objective of the Global Business Services (GBS) incentive is to create employment in South Africa through servicing offshore activities. The secondary objectives of the programme are to create employment opportunities for the youth (age 18-34 years); and contribute to the country's export revenue from offshoring services.

6.12 Isivande Women’s Fund (IWF)

Isivande Women’s Fund (IWF) is an exclusive women’s fund established by the dti to provide more affordable, usable and responsive finance to enterprises and thus accelerate the economic empowerment of women.

The beneficiaries eligible for funding are formally registered enterprises (start-ups and expansions) that are 50% + 1 share owned and/or managed by women. These women may apply for user-friendly, customised loans within a range of R30 000 to R2 million.

6.13 Manufacturing Competitiveness Enhancement Programme (MCEP)

The Manufacturing Competitiveness Enhancement Programme (MCEP) provides two main facilities: a Working Capital Facility, and a Plant and Equipment Facility. The objective of the working capital facility is to assist manufacturing companies with working capital, while the plant and equipment facility aims to provide finance to Black Industrialists for the acquisition of plant and equipment.

More information on the MCEP can also be found at through the IDC at https://www.idc.co.za/.

6.14 People-carrier Automotive Investment Scheme (P-AIS)

The People-carrier Automotive Incentive Scheme (P-AIS) is a sub-component of the Automotive Incentive Scheme (AIS) and provides a non-taxable cash grant of between 20% and 35% of the value of qualifying investment in productive assets approved by the dti.

The People-carrier Automotive Investment Scheme (P-AIS) is designed to stimulate a growth path for the people carrier vehicles industry through investment in new and/or replacement models and components that will result in new or retention of employment and/or strengthen the automotive vehicles value chain.

6.15 Sector-Specific Assistance Scheme (SSAS)

The Sector Specific Assistance Scheme (SSAS) is a reimbursable cost-sharing incentive scheme whereby financial support is granted to organisations supporting the development of industry sectors and those contributing to the growth of South African exports.

Organisations supported under SSAS include Export Councils, Joint Action Groups, Industry Associations and those involved in the aimed at the development of emerging exporters

6.16 Support Programme for Industrial Innovation (SPII)

The 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. SPII is focussed specifically on the development phase, which begins at the conclusion of basic research and ends at the point when a pre-production prototype has been produced. The SPII offers two schemes namely, the:

 SPII Product Process Development (PPD) Scheme; and

 SPII Matching Scheme.

6.17 The Technology and Human Resources for Industry Programme (THRIP)

The Technology and Human Resources for Industry Programme (THRIP) is a partnership programme funded by the dti and managed by the National Research Foundation (NRF). On a cost-sharing basis, THRIP supports science, engineering and technology research collaborations focused on addressing the technology needs of participating firms. The programme aims to:

 Increase the number and quality of skills in the industry

 Improve knowledge exchange and technology transfer among researchers in universities and Science, Engineering and Technology Institutions (SETIs)

 Increase investment by industry and government, in research and technology development

 Transfer technology and product or process improvement/development, through research collaboration between enterprises, universities and SETIs.

Compiled on behalf of Business Partners Limited and the SME Toolkit South Africa, last updated: February 2019.

© Business Partners Limited and the SME Toolkit South Africa.

Disclaimer:

Business Partners Limited (BUSINESS/PARTNERS) has made every effort to maintain the accuracy of the information in this document. The information contained here-in is for general guidance only. Users should neither act, nor refrain from action, on the basis of any such information.

BUSINESS/PARTNERS disclaims all responsibility (including in negligence) for all consequences of any person acting on, or refraining from acting, in reliance on information contained in this material.