The Department of Trade, Industry and Competition (the dtic) has announced that the economic recovery support interventions announced by the Trade, Industry and Competition Minister are open for affected businesses to apply. The R3.75-billion package is for the restoration of businesses adversely affected during the violent looting and unrest that took place in KwaZulu-Natal and Gauteng last month.
The dtic and its Development Finance Institutions, the Industrial Development Corporation (IDC) and the National Empowerment Fund (NEF), have collectively put together a funding package in support of various business recovery interventions. The aim is to provide industrial loan support at zero percent (0%) interest rate to affected companies towards rebuilding of infrastructure, including equipment, fittings for the premises, stock and working capital.
Part of the economic rebuilding package is a comprehensive package by the IDC that offers funding support for businesses and communities affected by the unrest to the tune of R1.5 billion. This includes a R100-million matching grant facility to support small and informal businesses in the townships, rural areas and small towns affected by the unrest. The Fund is designed to target the socio-economic challenges facing these businesses, as a result of this recent unrest.
In addition, R400 million has been set aside under the Manufacturing Competitiveness Enhancement Programme (MCEP) Economic Stabilisation Fund. The Fund will support manufacturing companies and related services affected by the unrest, including those impacted by associated supply chain disruptions. This Fund will offer concessionary funding to affected companies through interest-free loans to preserve and grow jobs as well as restoration of value chains.
More information on the various interventions of the economic rebuilding package is accessible at:
http://www.thedtic.gov.za/wp-content/uploads/Economic_Rebuilding_Package.pdf