Small business agency approvals now top R1 billion, Government announces new R165 million small business partnership with the private sector.
More than R1 billion of funding approvals have been made by government agency sefa (Small Business Finance Agency) in the past two years. This was announced by Minister of Economic Development Mr Ebrahim Patel, at the launch of the Godisa Fund at Koedoespoort near Pretoria today.
The Godisa Fund is a R165 million partnership between Transnet, sefa and Anglo American's Zimele, to provide funding to small black-owned businesses who are, or will become, suppliers to Transnet.
The Fund is part of a programme to expand manufacturing and localisation in South Africa and to provide economic opportunities for small businesses to be part of the National Infrastructure Plan.
"The state is investing roughly R200 billion a year to expand infrastructure through new capacity in transport, water, energy, ICT and social infrastructure. This is the moment to ensure that young entrepreneurs are given support, that we expand the base of enterprises and create new job opportunities. The R165 million Godisa Fund is one element of a number of measures now being implemented across government to expand the economy and small businesses," Minister Patel said today.
"The partnership brings three key aspects together. Transnet undertakes to provide qualifying companies with orders and to pay them within 30 days of invoice. The Godisa Fund will have a funding facility of R150 million available for bridging finance and term loans to the enterprises. The partners through Anglo Zimele, Transnet and sefa will provide mentoring, technical support and assistance to small companies to help them be sustainable. It will particularly support young entrepreneurs. This coordinated approach will help overcome many of the problems with the design of small business support in the past," Minister Patel said.
"We seek to have companies in this programme to become suppliers outside of Transnet too and to be part of South Africa's export of rail products and services to the rest of the African continent and beyond," Minister Patel said.
Note to editors: sefa was formed on 1 April 2012 to merge the separate small business funding agencies in national government. It is a wholly-owned subsidiary of the Industrial Development Corporation (IDC) and reports to The Minister of Economic Development. The launch of the Godisa Fund was addressed by Public Enterprises Minister Malusi Gigaba and Anglo American Corporation's Executive Director in South Africa, Ms Khanyisile Kweyama.
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