It seeks to broaden participation in entrepreneurial activity to all, with emphasis on youth development, women, and B-BBEE.
The DTI has identified and prioritised entrepreneurship as a catalyst and means to achieving economic growth and development for South Africa as a whole.
To make this happen, the DTI in conjunction with other government departments and institutions is implementing and executing a number of schemes and policies to ensure that businesses have access to the necessary finance and non-financial support to make their ventures sustainable and successful .
DTI funding
The DTI has a range of funding schemes available to new and existing business ranging from micro businesses to co-operatives to medium-sized businesses. Financial assistance from the DTI can take the form of cost-sharing incentives, loans or grants, and mentorship programmes.
1. Black Business Supplier Development Programme (BBSDP)
A cost-sharing schemes offering cost-sharing grants to black-owned small businesses to assist them in improving their competitiveness and sustainability. For more information visit their website.
2. The Co-operative Incentive Scheme (CIS)
This is a 90:10 cost-sharing grant for registered co-operative enterprises consisting of five or more members, with the aim of improving viability and competitiveness through lowered cost of doing business. For more information visit their website.
Loans available to South African business owners and start-ups are:
Isivande Women’s Fund
This fund is an exclusive women’s fund established by the DTI to accelerate women’s economic empowerment through affordable, usable and responsible finance. For more information click here.
Khula
Khula is the government’s agency for small business finance. It operates across both public and private sectors and is dedicated to providing much-needed funding to businesses. It serves as indemnity to financial institutes providing loans to businesses without assets to put up as collateral. Visit their site for more information.
Grants available through the DTI include:
Aqua-culture Development and Enhancement Programme (ADEP)
This programme is available to registered entities involved in primary, secondary and ancillary aquaculture projects for both marine and fresh water. It is approved for new, existing and upgrading entities. See more here.
Automotive Investment Scheme (AIS)
This scheme is designed to grow and develop the automotive industry through investment in new and replacement models and components that will increase production volumes, sustain and increase employment, and strengthen the automotive value chain. See more here.
Black Business Supplier Development Programme (BBSDP)
This is a cost-sharing grant offered to black-owned businesses to improve their competitiveness and sustainability. It aims to fast-track small and micro-enterprises, foster links between black-owned businesses, corporates and public sector, and to complement affirmative procurement and outsourcing. It provides grants to a maximum of R1 million. See more here.
Business Process Services (BPS)
This scheme aims to attract investment and create employment in South Africa through off-shoring activities. It involves a three-year tax-exempt grant for qualifying businesses. See more here.
Capital Projects Feasibility Programme (CPFP)
CPFP is a cost-sharing grant contributing to the cost of feasibility studies for projects that will lead to increased local exports and stimulate the local manufacturing sector. See more here.
Critical Infrastructure Programme (CIP)
This programme is aimed at improving the infrastructure of South Africa. The grant covers a minimum of 10% to a maximum of 30% of total development costs of qualifying infrastructure. See more here.
The Co-operative Incentive Scheme (CIS)
CIS is a 90:10 cost-sharing grant for registered primary cop-operatives of five or more members to improve the viability and competitiveness. See more here.
Incubation Support Programme (ISP)
This programme is designed to create and develop successful enterprises with the ability to revitalise communities and local economies. For more information click here.
The Manufacturing Competitive Enhancement Programme (MCEP)
Provides enhanced manufacturing support to encourage facility upgrades to sustain employment and improve productivity. See more here.
Manufacturing Investment Programme (MIP)
MIP is a reimbursable cash grant to local and foreign-owned manufacturers who wish to establish new facilities or expand on existing ones. See more here.
National Youth Development Agency (NYDA)
While it is moving away from grants for youth and going toward mentorship and development programmes, grants are available for youth entrepreneurs. See more here.
People-carrier Automotive Investment Scheme (P-AIS)
This scheme is a cash grant of between 20% and 35% of the value of qualifying investment in productive assets approved by the DTI. See more here.
The Sector Specific Assistance Scheme (SSAS)
A cost-sharing grant offered on an 80:20 principle and a maximum of R1,5 million is awarded to qualifying businesses. See more here.
Support Programme for Industrial Innovation (SPII)
Aimed to promote technology development in South African industry. Visit their site for more information.
How to access DTI funding
The DTI has core areas of focus that include industrial development; trade, export and investment; broadening participation; regulation; and administration and co-ordination.
Industrial development aims to promote long-term industrialisation and industrial diversification in metals fabrication, capital and transport equipment, green and energy-saving industries, agro-processing industries, automotive and respective components, plastics, pharmaceuticals, chemicals, clothing, textiles, leather, biofuels, footwear, forestry paper, pulp and furniture, tourism and cultural industries, business process outsourcing and off-shoring (BPO&O), and nuclear and advanced aerospace industries to name just some.
For more information on the kinds of funds, loans, grants and incentives available and each scheme’s application criteria, click here.
Contact details for the DTI
For more information about funding from the DTI, visit www.thedti.gov.za, email contactus@thedti.gov.za, or call 0861 84 33 84.
