4. Government Grants
A government grant is when a business is awarded government funding for some or all its financial support. A business grant doesn’t need to be repaid or accrue interest, but it does have strict guidelines for application. Here are some of the government grants available:
- Aqua-culture Development and Enhancement Programme (ADEP): This is available to businesses involved in primary, secondary and ancillary aquaculture projects for both marine and fresh water. It is approved for new, existing and upgrading entities.
- Automotive Investment Scheme (AIS): This government grant is available to those looking 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.
- Black Business Supplier Development Programme (BBSDP): This cost-sharing government grant is offered to black-owned businesses to improve competitiveness and sustainability.
- Business Process Services (BPS): Use this scheme to attract investors through off-shoring activities. It involves a three-year tax-exempt grant for qualifying businesses.
- Capital Projects Feasibility Programme (CPFP): This is a cost-sharing government grant, which contributes to the cost of feasibility studies for projects that lead to increased local exports and stimulate the local manufacturing sector.
- Critical Infrastructure Programme (CIP): This aims to improve the infrastructure of South Africa. The grant covers 10% – 30% of total development costs of qualifying infrastructure.
- The Co-operative Incentive Scheme (CIS): This government grant is a 90:10 cost-sharing grant for registered co-operatives of five or more, to improve viability and competitiveness.
- Incubation Support Programme (ISP): This is designed to create and develop successful enterprises and revitalise communities and local economies.
- The Manufacturing Competitive Enhancement Programme (MCEP): This scheme offers enhanced manufacturing support to encourage upgrades to retain employees and increase productivity.
- National Youth Development Agency (NYDA): These are government grants, mentorship and development programmes available for youth entrepreneurs.