Government Business Funding South Africa – The rapid impact of COVID-19 and government shutdowns have forced small business owners around the world to turn to financial experts and disaster management professionals overnight. In South Africa, we have our own challenges and backup plans. To make it a little easier, we’ve compiled this list of small business loan/assistance opportunities so you can find applications and information and apply where you qualify.
Yoco merchants can use their sales reports to point to lost revenue as a direct result of the COVID-19 pandemic using period comparison reports. You can download your sales report from Yoco’s business portal here.
Government Business Funding South Africa
The Department of Small Business Development has announced a series of interventions for small businesses, including a debt relief financing scheme and a growth resilience fund.
Why Startups Don’t Bid On Government Contracts
COVID-19 intervention measures include: relief financing schemes for MSMEs, business growth and resilience funding, SEFA-financed debt restructuring, and informal sector management. Register your business online to start the application process.
You can read more about state aid measures here, particularly support for spaza shops and informal sector businesses.
The Solidarity Response Fund is one of the first safety nets to help small businesses and people in need during the COVID-19 and 21-day lockdown.
Mary Oppenheimer and her daughters, as well as Patrice Motsepe and associated companies, each pledged R1 billion in donations to the fund. Listed technology investor Naspers will also contribute R500 million to the Solidarity Response Fund. Individuals and companies who may be encouraged to donate to the fund. You can contact [email protected] for more information.
Blog: Five Ways Governments Can Help Small Businesses In The Informal Sector Survive Covid 19
Johan Rupert’s fund, the Sukuma Relief Programme, to which he pledged R1 billion, received more than 10,000 applications in three days and has since closed applications. The fund is made up of two separate relief offerings: one for formal sole proprietors and one for corporations, businesses and closed trusts. Financial aid and assistance will include grants and low-interest loans with a 12-month repayment moratorium. Although the fund is closed for the time being, applications may reopen as the program aims to stimulate growth during and after the pandemic.
Formal sole proprietors and CCs, companies and trusts can apply online for the Sukuma Relief Program here in case of re-opening of applications.
The South African Future Trust (“SAFT”) is an independent trust founded by Nicky and Jonathan Oppenheimer, in partnership with the South African government and the private sector. Its immediate objective is to extend financial support to employees of small and medium-sized South African companies who are at risk of losing their jobs or experiencing loss of income due to COVID-19.
During this initial COVID-19 period, the funds will be disbursed as interest-free loans for a period of five years. If you bank with one of the following banks, please contact them for more information on eligibility and application. For example, FNB currently processes applications through their app once an SME assessment has been completed.
Three Facts About Small Business Turnover In South Africa
The South African National Taxi Council (SANTACO) has launched a R3.5 billion Covid-19 relief fund. This fund will compensate workers in the industry. It aims to help 100,000 queue officers, 150,000 taxi drivers and taxi association support workers whose livelihoods have been compromised by the coronavirus pandemic.
The Youth Entrepreneur Relief Fund will “assist young entrepreneurs with operating costs, labor costs and rent.” Apply online here.
For those working in the tourism industry, a COVID-19 tourism relief fund has been established. Applications are open, apply online here.
Apart from these, there are several other targeted relief funds. This PDF summarizes the current COVID-19 intervention, eligibility criteria and application procedure.
Power Africa In South Africa
A Guide to FIU Applications for Small Business Owners Many South African businesses have turned to FIU and Covid-19 TERS to support their employees during the COVID-19 lockdown. The FIU application process is provided on the official website, but many business owners face challenges in processing their applications and making payments on behalf of their employees. Learn more
Tish is a writer and strategist with a background in digital marketing and copywriting. He helps brands develop strong, authentic personalities through content creation. As the government introduced new legislation to further support small, medium and micro-enterprises (MSMEs), the recently released 2019 data
The recently released National Small Business Amendment Bill 2020 outlines the establishment of an ombuds service that will provide legal assistance to MSMEs.
Support of MSMEs recognizes this sector as an important engine of economic growth. Information on billing
Where We Work
Survey, generated R10.5 trillion in total billings in the 2019 financial year. Billing includes receipts from the sale of goods and/or provision of services, as well as transportation equipment, machinery, equipment, land leases or rentals. Building and mineral rights.
A breakdown of turnover by company size shows that small companies accounted for R2.3 trillion (or 22%) of the R10.5 trillion in output. Medium-sized companies contributed the smallest share (10%), while large companies accounted for the largest share, accounting for only two-thirds (68%) of total billings (click image to enlarge).
Small businesses, without much fanfare, have gradually grabbed a bigger slice of the billing pie. In 2013, small businesses made up 16% of total turnover in the formal business sector, rising to 22% in 2019. At the same time the contribution of large businesses has decreased from 75% to 68%
From 2013 to 2019, the formal business sector as a whole increased its turnover from R7.0 trillion to R10.5 trillion, representing an average annual growth rate of 7.0%. Medium-sized companies increased their turnover by 8.4% per year and large companies by 5.4%.
Democratic Alliance (south Africa)
Even before the COVID-19 pandemic, South Africa’s construction industry was going through a tumultuous period. In the first quarter of 2020, the industry posted its seventh consecutive quarterly economic decline.
The industry’s woes, exacerbated by the COVID-19 pandemic, have forced several major construction firms to file for corporate bailouts.
With less big players generating turnover, smaller companies have filled the void. In 2013, small companies accounted for 17% of the total construction industry turnover, increasing to 34% in 2019. Large companies contributed almost two-thirds of the total construction business in 2013, which has declined to just 40% in 2019.
In terms of growth, small construction companies tripled from R53 billion in 2013 to R163 billion in 2019 (an increase of R110 billion). In stark contrast, large construction companies grew by R17 billion from R187 billion to R203 billion over the same period.
Business Funding Solutions For Kasi Businesses In South Africa
The contribution of small businesses to total turnover in the business services industry increased from 29% to 42% in six years, also breaking the dominance of the big players.
On the other side of the coin, the presence of small businesses in the mining and utility (electricity, water and gas supply) industries is much lower. This indicates that these industries are dominated by a few very large players and have high barriers to entry. Eskom, for example, supplies most of South Africa’s electricity.
The survey measures the financial health and performance of each industry, providing information on turnover, purchases and capital expenditures. The report draws information from the company’s financial statements (eg, private companies and public corporations). AFS excludes agriculture and hunting; Government and educational institutions; and financial intermediation, pension financing, insurance and business services “not elsewhere classified”.
Statistics SA is in the process of updating all user databases Please participate in this short survey and provide your details. All details will be kept confidential and for the exclusive use of Statistics SA. Below is a scene from Chapter 1 of the Foresight Africa 2021 report, which explores the top priorities for the region in the coming year. This year’s issue focuses on Africa’s strategies to deal with the twin economic and health crises created by the Covid-19 pandemic and becoming stronger than ever. Read the full chapter on the great reset.
Conserving Africa’s Wildlife And Wildlands Through The Covid 19 Crisis And Beyond
The Covid-19 pandemic has seen the widespread use of expansionary monetary policy that is simply unprecedented in terms of scale. Over $12 trillion in discretionary financial support has been provided globally during the pandemic. Such spending came in the form of support for the unemployed, small businesses and struggling sectors in an effort to save livelihoods and keep the economy afloat. Crucial to many sub-Saharan African countries, however, these fiscal stimulus packages have deepened their debt challenges.
Gracelin Baskaran Non-Resident Fellow – Global Economics and Development, Africa Growth Initiative Consultant, Equitable Growth Group, Finance and Institutions – World Bank By-Fellow in Economics – University of Cambridge
South Africa is one such example. Although the country’s pre-pandemic forecast for the debt-to-GDP ratio for 2020 was already high at 65.6 percent, the government will need to exceed the spending ceiling and raise its debt to support the economy during the pandemic, raising the ratio. Debt-to-GDP forecast at 80.5 percent by 2020. High debt burdens can significantly damage a country’s long-term growth prospects: indeed, a World Bank study found that in emerging markets, annual real growth losses amount to 0.02 percentage points for every percentage point identified.
