The Craft + Design Institute (CDI) has raised R33 million to establish three funds to support SME growth – a Growth Fund, a Design Innovation Seed Fund and a Loan Book. These three funds will be managed by the investment arm, CDI Capital.
“In most countries, SMEs play a vital role as drivers of economic growth, innovation and job creation, but in South Africa this value is yet to be properly realised. To achieve this, the challenges experienced by SMEs need to be addressed, namely access to markets, finance and credit, infrastructure, resources for R&D, and access to adequately skilled and work ready labour,” explains Erica Elk, Executive Director of the CDI.
The funding’s aim is to create 60 growth-orientated SME’s and 20 innovation technological solutions, which in turn will create 600 permanent jobs over the course of three years.
“We have put a significant amount of work into developing these offerings, not only ensuring good governance and appropriate monitoring and evaluation measures, but realising real and sustainable impact with the businesses we support. We are excited to have raised R33 million to launch this new funding for SMEs, and we thank our funders and supporters – we look forward to making meaningful investments,” says Elk.
The Growth Fund
The Growth Fund is targeted at business with a turnover of assets of more than R1 million, with the ability to create permanent jobs. Applications for this fund open on the 27th November and close on the 31st of December 2017.
The Growth Fund invites SME’s that are experiencing growth or equipped for expansion and able to create sustainable quality jobs to apply for grant funding.
Criteria for the Growth Fund
- Controlling interest in the business (51%) must be a South African citizen with valid South African Identity Document or legal entities controlled by South African citizens with valid South African Identity Documents or permanent residents who hold a valid RSA ID document.
- All business operations must be conducted within the borders of South Africa.
- Must be an existing business, preference will be given to businesses that have been trading for two years or more. The business should operate in the craft, design and light manufacturing sectors, but other industries will also be considered.
- The business will need a turnover or assets of more than R1 million and a willingness to create permanent employment. It must demonstrate year-on-year growth and/or the potential for sufficient growth, while being tax compliant.
- The applicants business will need to create one permanent employee job per grant investment of R21 000 and prepared to contribute an additional 20% of the grant amount in cash to be used in the business.
For more information and further criteria visit here.
The Design Innovation Seed Fund
The Design Innovation Seed Fund is open to investors who have protectable innovative technological solutions that can impact specific sectors and create permanent employment. Applications for this fund open on the 27th of November and close on the 31st of December 2017.
This fund is available to individuals and SME’s with pre-revenue innovative technology and tech-enabled ideas and products within specific sectors to apply.
Criteria for the Design Innovation Seed Fund
- Western Cape based early-stage SME’s/entrepreneurs/researchers.
- Students at Western Cape tertiary institutions where the institution doesn’t have an Intellectual Property claim to the product/service. Please consult institution’s Intellectual Property policy.
- Pre-revenue businesses in incubation or entering incubation or existing SMEs with new products/innovation that is still pre-revenue.
Sector focus 2018/2019:
- Water Conservation
- Alternative Building Materials
- Wild Card* (*projects outside these sectors can be considered).
How to Apply for Funding
Click here for more on the criteria and further information visit here.
In addition to the grant funds, CDI Capital is also launching a R3.5 million working capital and term loan facility as reduced rates for the entire three year project. This will provide access to cash flow during the growth stages of SME’s that qualify for these funds and others.
For more information visit CDI Capital.