Small Enterprise Manufacturing Support Programme [Semsp]

SMALL ENTERPRISE MANUFACTURING SUPPORT PROGRAMME [SEMSP]

#BuyLocalBuyMadeInSA This scheme/fund is targeted at township and rural area-based entrepreneurs with a consideration for small-scale manufacturers located in cities.

1. PURPOSE a. To provide financial and business development support to small enterprises in the manufacturing industry sub-sectors b. To provide infrastructure to small enterprises in the manufacturing industry sub- sectors c. To provide market access opportunities to small enterprises (public and private sectors) d. To facilitate aggregate input costs for raw materials e. To prioritise manufacturing industry sub-sectors with good job creation potential, namely:  furniture manufacturing  metal and steel manufacturing  chemical manufacturing  agro-processing f. To contribute to the resuscitation of township and rural economies

2. SCOPE OF THE SEMSP

a. The programme will be applicable to all the manufacturing industry sub-sectors, but will priorities furniture manufacturing, metal and steel manufacturing, petroleum & chemical manufacturing as well as food and beverages manufacturing (agro- processing). b. The programme will support the following categories of small enterprises that must be operating in townships and rural areas: c. Furniture manufacturers, including coffin makers. d. Manufacturers and suppliers of iron and steel products (steel erector, welder, boilermaker, pipefitter, millwright, blacksmith, gunsmith). e. Manufacturers of sanitizers, disinfectants, water, recycling, paints, oils, and related products. f. Food and beverages manufacturers including agro-processors of primary agricultural products sourced from small-scale farmers. g. The programme will consider projects from all manufacturing sub-sectors that will drive thee revitalisation of township and rural economies through job creation.

3. OBJECTIVES OF THE SEMSP a) To provide furniture manufacturers, including coffin makers, with enterprise development support that will include financial and non-financial support b) To provide manufacturers and suppliers of iron and steel products with business development services and infrastructure support

c) To provide mmanufacturers of chemical and related products with capacity building support including skills and facilities d) To provide agro-processors with business development services, technical skills, and infrastructure e) To open market access opportunities for manufacturing industry sub-sectors f) To forge partnerships with relevant role players in the manufacturing industry

4. SEMSP Business Development Services a) Business training through Seda and furniture incubators as well as assistance with certification of products via SABS for furniture manufacturers b) Regulatory compliance support for informal steel workers to formalise their enterprises (CIPC, SARS) c) Technical skills training in collaboration with the Chemical Industries Education and Training Authority (CHIETA) for manufacturers of chemicals and related products d) Business development services and technical skills for agro-processors

Infrastructure provision (buildings and machinery) a) Factory space in industrial parks for furniture manufacturers and steel & metal work small enterprises b) Refurbish unused government buildings and fit with machinery for furniture manufacturers and steel & metal work small enterprises to rent time c) SANAS, NRCS, SABS to provide access to Lab Testing for the accreditation and certification of chemical and related products d) Processing facilities for agro-processing (goat hair used to make the country’s first locally produced cashmere) e) Machinery and equipment for agro-processing

Access to markets a) Government departments and state-owned enterprises to procure furniture from local suppliers…including public institutions such as courts, correctional centers, schools, hospitals, police stations, libraries, etc b) Enforce the Local Procurement Accord commitment that the private sector will purchase their furniture from local suppliers c) Steel/metal work enterprises to participate in government infrastructure programmes such as the construction of low-cost housing, schools, health facilities (furniture, windows, door frames) d) Manufacture prioritised chemical products for schools, hospitals, government offices and corporate offices (sanitisers, disinfectants, cleaning detergents, etc)

e) Public hospitals and correctional centres to procure food from local agro-processors foods such as wheat, soybean, vegetable oils, read meat, tomato concentrates and industrial starch (rice, potato)

5. FINANCIAL SUPPORT

a) Funding to purchase machinery and equipment for the various manufacturing sub- sectors that will be supported b) Working capital for the various manufacturing sub-sectors that will be supported c) Funding for product accreditation, certification, and testing

Funding terms a) Funding of up to a maximum of R15 million per small enterprise, up to 20% of the amount may be given as a Grant were necessary. b) The term of the funding will be determined by the business cash flow up to a maximum repayment period up to 84 months per small enterprise with a maximum moratorium period of up to 6 months c) The loan will be repayable at prime lending rate

6. FUNDING CRITERIA

Each application for funding is assessed in terms of the following criteria:

a) Complete the simplified online application platform b) Company statutory documents c) FICA documents d) Certified ID copies of Directors/Members e) 6 months bank Statements f) Latest AFS and/or Management Accounts not older than 3 months from date of application (Statement of Financial Performance and Statement of Financial Position) – where applicable g) Business Profile h) Project Execution Plan i) 12 months Cash Flow Projections (with clear assumptions) – where applicable j) Copy of Lease Agreement or Proof of Ownership k) Relevant industry certification – where applicable l) Copy of Contract or Purchase Order m) Facility Statements of Other Funders - where applicable n) Quotations for applied funding

7. QUALIFYING CRITERIA

Each application will be assessed in terms of the following criteria:

a) Be a registered legal entity in South Africa in terms of the Companies Act, 1973 (as amended); Close Corporations Act, 1984 (as amended); and the Cooperatives Act, 2005 (as amended).

b) Be a 100% owned by South African citizens. c) Have been in operation for at least two years prior. d) Be predominantly black owned (51%). e) Have a predominantly black management team (51%). f) Be registered and compliant with the South African Revenue Service (where applicable). g) Must be registered on the National SMME Database – https://smmesa.gov.za

8. HOW TO REACH sefa OFFICES

If you stay in a township or village to access the Business Relief Programmes, send your enquiries to e-mail: [email protected] or call us on 012 748 9600 Additional information may be obtained at the following websites: