SIOC Community Development Trust Partners With The National Empowerment Fund On an R16.1million Fund
Limpopo – Developing local small, medium and micro enterprises (SMMEs), is at the heart of SIOC-CDT and as such, the trust has partnered with the National Empowerment Fund (NEF), an agency of the Department of Trade, Industry and Competition whose mandate is to grow black economic participation, to provide financial and non-financial support to SMMEs in Limpopo and the Northern Cape that have been affected by the COVID-19 pandemic. The partnership amounts to R16.1million and is for the benefit of SMMEs owned and managed by black South African citizens.
SIOC-CDT/NEF COVID-19 Grant Fund
R3.5 million of the total fund will go towards grant funding targeted at formal and informal SMMEs residing within the qualifying areas of Thabazimbi in the Limpopo Province and Tsantsabane, Gamagara, Gasegonyana and Joe Morolong in the Northern Cape, to benefit businesses that have been severely affected by the COVID-19 pandemic.
The grant amount is limited to a minimum of R10,000 to informal traders and a maximum of R100,000 to formal businesses per transaction.
Grant funding will be approved by the Regional Project Steering Committee selected by both institutions, while the hybrid fund will be administered by the NEF’s Investment Committees. Furthermore, the NEF will be responsible for the disbursement of both funds.
SIOC-CDT/NEF Covid-19 Hybrid Grant Fund
R12.625 million of the total fund will be set aside for the Hybrid Fund where the applicant will be supported through a mixture of loan and grant funding, to the extent that the loan will represent 60% of the funding required and 40% will be the grant portion.
This fund will also be targeted strictly at the qualifying areas within Thabazimbi in the Limpopo Province and Tsantsabane, Gamagara, Gasegonyana and Joe Morolong in the Northern Cape area. Transactions with a minimum funding requirement of R250,000 and a maximum of R600,000 will be considered.
The NEF Investment Committee will be responsible for all investment decisions aligned with SIOC-CDT standards, and following existing NEF Corporate Governance structures.
“The COVID-19 pandemic has had a devastating impact on our beneficiary communities and we are optimistic that this partnership will go a long way in supporting entrepreneurship and innovative new businesses ideas while scaling up existing ones. Enterprise development is at the heart of SIOC-CDT and as such, we plan to drive entrepreneurship empowerment for local entrepreneurs through this dynamic partnership by ensuring that they are commercially viable,” said SIOC community development trust chief executive officer Vusani Malie.
SIOC-CDT press release, 14 September 2020
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