Individuals and businesses can contact any of the below organisations to investigate funding options.
A. FINANCIAL LOANS
At Genfin, we share the desire to see thriving businesses grow. Our commitment to quick business assessments and sensible decisions make us the perfect funding partner for your business. Clients can count on Genfin working with them to find the right solution for their business funding needs.
Lulalend is more than a company. It’s a belief in the power of small business, making a difference, building a better solution and striving for excellence. We work hard to empower businesses across South Africa with the funds they need to grow, and we have a great time doing it!
Are you an entrepreneur needing finance? Finfind links you with the all the lenders across the country that match your specific funding needs – there are over 300 offerings. Supported by: Small Enterprise Development Agency (Seda) and The Department of Small Business Development, USAID
At ProfitShare Partners, we believe that entrepreneurs and emerging businesses are the drivers of the economy. We are bridging that gap. Our approach is to enable businesses, particularly SMMEs, by offering a solution that will assist them in delivering on their contracts by financing the deal and supporting the full project through to delivery. We are also focused on the supply market and can offer solutions that will grow businesses substantially within a period of two to three years.
B. FUNDING OPTIONS
At Vumela, we think that helping SMEs grow is the single most powerful way to transform South Africa – by creating jobs and addressing poverty. After all, many South African SMEs struggle to scale or fail altogether because they don’t have access to the necessary funding, skills or support. That’s why we provide venture capital funding, from R2 million up to R20 million, to South African SMEs who show potential to scale exponentially. But businesses get much more than just funding:
- We offer non-financial growth support that includes participation in our cutting-edge accelerator programme for Scale Ups called 10X-e.
- We’re majority black-owned, so any shareholding we take will be considered black equity.
Angel Investment Network
Unlike banks or other financial institutions, angel investors are willing to take a chance and invest smaller amounts of money in high-risk businesses, with the hopes of gaining high returns within a set period of time (usually five to ten years). These wealthy individuals use their own funds to finance projects that they believe will be lucrative or where they can use their talent and skill to mentor new entrepreneurs. Connect with potential angel investors and new business entrepreneurs on the Angel Investment Network, operating in countries all around the world. 153,438 registered angel investors looking for projects like yours. Submit a pitch and we’ll help you find an investor.
Masisizane Fund (‘Masisizane’)
The Masisizane Fund (‘Masisizane’) is an Old Mutual initiative that was established in 2007 following the closure of the Unclaimed Share Schemes Trust in consultation with the National Treasury of South Africa. Masisizane was set up as a non-profit funding company to provide loan financing and support to small, medium and micro enterprises (SMMEs). Our mandate is to contribute to job creation, reduce inequality, promote economic growth and support, develop and promote entrepreneurship, while attracting investment to SMMEs.
C. CONSULTING AGENCIES
The niche consulting firm specialises in helping entrepreneurs, including black industrialists, access development funding in the form of government grants, incentives or loans from institutions like the Department of Trade and Industry (DTI), Industrial Development Corporation (IDC), National Empowerment Fund (NEF), and Small Enterprise Finance Agency (SEFA).
Khula Enterprise Finance
Khula helps SMMEs to secure loans from banks. It does not lend money itself. Khula also provides mentorship to entrepreneurs, helping them to manage their businesses successfully. The mentorship programme includes the transfer of skills on a face-to-face basis, the development of viable business plans, and pre- and post-loan services.
South African Micro Finance Apex Fund (SAMAF)
SAMAF gives financial services to small-scale entrepreneurs living in rural and outer urban areas. SAMAF does not lend money directly to the public. It uses existing institutions within communities to handle the funds and lend to qualifying entrepreneurs. SAMAF has three products:
- The Micro-Credit Fund (gives loans to entrepreneurs).
- The Capacity Building Fund (gives funds to be used for equipping the institutions with skills, systems and equipment).
- The Savings Mobilisation Fund (encourages savings).
- SAMAF is specifically targeted at young people between the ages of 18 and 35.
D. GOVERNMENT FUNDING AGENCIES
South African government funding and grants are focused on providing funding for business ventures that can make a difference to the economy.
Ministry of Small Business Development
To support the radical transformation of the economy through the promotion and development of sustainable and competitive entrepreneurs, small businesses and co-operatives, that contribute to job creation and economic growth.
Department of Trade and Industry (DTI)
DTI business grants are responsible for actively encouraging small businesses. The DTI is actively searching for new business owners, specifically those who will positively affect South Africa’s economy with an emphasis on valuable job creation. The DTI business grants provide financial support to various economic activities, including manufacturing, business competitiveness, export development, market access and provide a channel for foreign direct investment.
National Empowerment Fund (NEF)
The National Empowerment Fund (NEF) is a driver and thought leader in promoting and facilitating black economic participation by providing financial and non-financial support to black empowered businesses and promoting a culture of savings and investment among black people. The NEF’s role is to support Broad-Based Black Economic Empowerment (BB-BEE). It provides business loans from R250 000 to R75 million across all industry sectors, for start-ups, expansion and equity acquisition purposes.
National Youth Development Agency (NYDA)
The National Youth Development Agency (NYDA) – NYDA provides grant finance in the form of micro-finance grants for survivalist youth entrepreneurship and co-operative grants for greater participation of youth in the co-operatives sector.
Industrial Development Corporation (IDC)
The Industrial Development Corporation (IDC) – Under the IDC, there are multiple funds available offering financial support to start-up businesses needing capital for equipment, working capital and buildings. It also funds business expansion.
KZN Growth Fund
The KZN Growth Fund is an initiative aimed at creating sustainable economic development, job creation and black economic empowerment within the infrastructure sector in the Province of KwaZulu-Natal. The KZN Growth Fund is essentially a debt fund, structured as a unique public-private partnership between the Provincial Government, commercial invitations and development finance institutions. It was established with a mandate to finance medium to large scale infrastructure-related projects throughout KwaZulu-Natal, which drive economic success, stimulate job creation, promote broad-based black economic empowerment (BBBEE) and reduce inequality.
Isivande Women’s Fund
The Isivande Women’s Fund is an exclusive fund that aims to accelerate black economic empowerment by providing more affordable, usable and responsive finance than is currently available. It was originally aimed at women only but opened up now for all black persons in South Africa. The IWF assists with support services to enhance the success of businesses. It pursues deals involving start-up funding, business expansion, business rehabilitation, franchising and bridging finance. The Fund is managed by the Industrial Development Corporation (IDC) on behalf of the DTI through a development fund manager. IDF Managers is an SME financier aimed at supporting the creation of self-sustaining black-owned businesses in South Africa by providing primarily financial and non-financial support to our investee companies.
KFW Development Bank
The German Development Bank (The KfW), is a German government-owned development bank. It finances and supports programmes and projects that mainly involve public sector players in developing countries and emerging economies – from their conception and execution to monitoring their success. Their goal is to help their partner countries fight poverty, maintain peace, protect both the environment and shape globalisation in an appropriate way. To this end its largest subsidiary, KfW IPEX-Bank GmbH, lends to many countries around the world. In 2011, the KfW, together with South Africa’s Industrial Development Corporation (IDC), established the Green Energy Efficiency Fund, a R 500 million fund for energy efficiency and renewable-energy projects. The GEEF supports projects that will provide significant energy savings and/or emissions reductions. Companies in this arena can borrow R1 million to R50 million rand at two percentage points less than the prime lending rate. If your company has less than 201 employees, revenue of less than R51 million or assets of less than R55 million, then you are eligible to apply.
The Land Bank of South Africa is a specialist agricultural bank, wholly owned by the Government, and is a key financial player in agriculture. It is guided by a government mandate to provide financial services to the commercial farming sector and to agri-business, and to make available certain financial products which would facilitate access to finance by new entrants to agriculture from historically disadvantaged backgrounds. The Land Bank offers a broad range of loans for all financial needs like buying land, equipment and working capital for agricultural projects.
Small Enterprise Finance Agency (SEFA)
Small Enterprise Finance Agency commonly known as SEFA was established in 2012 as a result of the merger of South African Micro Apex Fund, Khula Enterprise Finance Ltd and the small business activities of IDC. SEFA‘s mandate is to foster the establishment, survival and growth of SMMEs and contribute towards poverty alleviation and job creation.
The Technology Innovation Agency (TIA)
The objectives are stimulating and intensifying technological innovation in order to improve economic growth. The goal is to increase the quality of life of all South Africans by developing and exploiting technological innovations.