| Danida Business to Business Programme, Credit Guarantee Scheme |
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| The objective of the Business-to-Business programme is to develop and strengthen business opportunities and create jobs for eligible entrepreneurs from the 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. |
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| Emerging Entrepreneur Scheme, Credit Guarantee Scheme |
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| The Emerging Entrepreneur Scheme provides up to R100 000 with the fee payable at 4% p.a. in advance. The duration is 24 months initially but can be extended three times for periods of 12 months each time. The conditions are mentorship of the loan. |
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| Empowerment Scheme, Credit Guarantee Scheme |
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| The Empowerment Scheme provides cover up to R5m of bank facility at 60% , with the fee payable at 2,5% p.a. in advance. Duration is 36 months initially but can be extended twice for a period of 12 months each time. |
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| Individual Guarantee, Credit Guarantee Scheme |
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| The purpose of the individual guarantee scheme 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. Facilities secured under the Khula guarantee scheme often include term loans, bank overdraft, revolving credit, installment sale, bank guarantees as well as construction performance guarantees. |
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| Institutional Guarantee, Credit Guarantee Scheme |
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| Kwa Zulu Rehabilitation Trust Fund, Credit Guarantee Scheme |
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| The fund set R10m aside for Kwa Zulu entrepreneurs whose businesses were adversely affected by unrest up to 1994. This fund is meant to cover lack of collateral for businesses wishing to reinstate their operations. The entrepreneurs could be in a different line of business presently and proof that the loss of the first business was due to the unrest will be required. |
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| Micro Credit Outlets (KhulaStart) |
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| KhulaStart uses the group solidarity methodology (gives loans to groups - not individuals). Individuals select themselves into groups of 3 -10 members and need to meet the criteria established for group participation. Most importantly the group has to be a cohesive one The loans are disbursed on an incremental basis from R300 - R3 500 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. |
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| Regional equity funds |
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| The need for risk capital (venture capital/private equity) to support Small and Medium Enterprises (SMEs), especially those sponsored by historically disadvantaged entrepreneurs, is not in doubt. Many banks and financial institutions have introduced equity funding into their product mix. |
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| Retail Financial Intermediaries |
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Business and Capitalisation Loansare are provided by Khula, which are loans given to RFI's to enable RFI's to lend to entrepreneurs for business purposes. Entrepreneurs must approach RFI's directly and not Khula. Only companies that want to access these products and become RFI can apply to Khula.
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| Standard Scheme, Credit Guarantee Scheme |
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| The Standard Scheme provides cover up to R1m of the bank facility at 80% , with the fee payable at 3% p.a. in advance. The duration of the scheme is 36 months initially, but can be extended twice for periods of 12 months each time. Normal criteria apply. |
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| The Land Reform Credit Facility |
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| The Land Reform Credit Facility is a wholesale finance facility at Khula Enterprise Finace Ltd, whose aim is to stimulate and encourage private sector participation and involvement in the Land Reform process. The LRCF is funded by the Department of Land Affairs and the European Union. The facility achieves its objective by incentivising commercial banks and other high credit rated institutions to invest in high value agricultural and ecotourism joint ventures, thereby unlocking private sector investment into the agricultural, agribusiness and ecotourism sector. |
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| Dutch funds available for investments in South Africa |
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| 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 local South-African company. These
companies can receive a contribution of 50 percent of the total project costs.
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| SEDA Technology Programme (stp) |
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| As part of the government’s national strategy of consolidating small enterprise support interventions across different government departments and government agencies, the 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 (DST) agreed to merge the Godisa trust with the National Transfer Centre (NTTC) and the Technology Advisory Centre (TAC). The three dti incubators, namely Mpumalanga Stainless Steel Initiative (MSI), Downstream Aluminium Centre for Technology (DACT) and Furntech, were also incorporated into stp. |
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