Danish Business to Business Program, Credit Guarantee Scheme: The objective is to develop and strengthen business opportunities and create jobs for eligible entrepreneurs from previously disadvantaged communities. This is achieved through support to the development of commercially viable businesses based on formation of business partnerships between South African and Danish companies.
Emerging Entrepreneur Scheme, Credit Guarantee Scheme: Provides up to R100, 000 with the fee payable at 4% p.a. in advance.
Empowerment Scheme, Credit Guarantee Scheme: This provides covers up to R5-million of a bank facility at 60%, with the fee payable at 2.5% p.a. in advance.
Micro Credit Outlets (KhulaStart): KhulaStart uses the group solidarity methodology (gives loans to groups, not individuals). Groups have to meet the criteria established for group participation. The loans are disbursed on an incremental basis from R300 - R3500 per member within a group. The group decides, based on the activity of the individual businesses, how much each member has to receive, and will subsequently stand surety for the full amount owed by the group as a whole.
Individual Guarantee, Credit Guarantee Scheme: The purpose is to enable an entrepreneur to access funding from a participating bank or other financial institution. The scheme enables the entrepreneur to access funding for purposes of establishing, expanding or purchasing a business.
Regional Equity Funds: The need for risk capital (venture capital/private equity) to support small and medium enterprises, especially those sponsored by historically disadvantaged entrepreneurs, is not in doubt. Many banks and financial institutions have introduced equity funding into their product mix.
Standard Scheme, Credit Guarantee Scheme: The Standard Scheme provides cover up to R1 million of the bank facility at 80%, with the fee payable at 3% p.a. in advance.
Dutch funds available for investments in South Africa: South Africa is a new market that is expanding rapidly. This provides opportunities for businesses to expand investments and trade relations. The Dutch Ministry of Foreign Affairs finances companies who wish to invest in South Africa, together with a South African company. These companies can receive a contribution of 50% of the total project costs.
SEDA Technology Program (STP): As part of the government’s national strategy of consolidating small enterprise support interventions across different government departments and government agencies, the Department of Trade and Industry (DTI) has commenced its own process of streamlining its small enterprises support interventions. As part of this process, the DTI and the Department of Science and Technology agreed to merge the Godisa trust with the National Transfer Centre and the Technology Advisory Centre. The three DTI incubators (Mpumalanga Stainless Steel Initiative, Downstream Aluminium Centre for Technology, and Furntech) were also incorporated into the STP.