Start-up grant scheme - R4.9m to be disbursed to successful applicants |24 November 2017

A total of R4,966,672 will be disbursed to successful applicants who have applied for the Start-up Grant Scheme seed capital as from this week. 

Ninety-six (96) applicants requested the maximum amount of R50,000, while four applicants requested a lesser amount, ranging from R36,000 to R44,000.

Successful applicants are from different sectors ranging from businesses in health, production of local products, child minding, landscaping and beautification, tourism, fisheries, among others.  Successful applicants signed their agreement late last week.

The Start-Up Grant Scheme provides seed capital of up to R50,000 to fund small start-up businesses in their early stages of development.  As a means to further enhance the development of more competitive and resilient businesses, the government through the Ministry of Finance, Trade and Economic Planning allocated a sum of R25 millionfor the Start-Up Grant-Scheme for the next five years, starting this year.

Therefore a sum of R5 million has been allocated for each year to assist a maximum of 100 applicants per year.

The chairman of the Seed capital Committee, Brian Nicette, pointed out that unsuccessful applicants will be informed as of this week; they will be issued a letter and that if they want to re-apply for next year, they can always do it.

“Based on information gathered on each applicant, we will be able to work and assist those who have not qualified, work towards improving areas and make the necessary amendments so that their project can be submitted next year,” he said.

All applications submitted have been classified in sectors, namely tourism, agriculture, manufacturing, consultancy, food and beverage, and health fitness and beauty, to name a few.

Mr Nicette said that the committee will work on some suggestions and or proposals and use lessons learnt from this first exercise to improve the whole process.

He noted that they have received a lot of positive responses, and the committee believes that people really want to do their own business and that during the entire process, they have seen a lot of great ideas but these people need a start-up fund.

This initiative has proven to be a good one, seeing the amount of people who have applied. People wishing to start a business cannot rely on the banks as they cannot afford the prerequisite amount required to qualify for a loan.

According to Mr Nicette, evaluation and monitoring of successful projects will start next year during the month of March or April; this he says will provide applicants enough time to get their projects running and at least get them on their feet first. “Monitoring and evaluation officers from the Ministry of Industry, Entrepreneurship Development and Business Innovation, or Senpa will pass by to assess their projects among other things. Everything is and will be well documented to encourage accountability and transparency,” Mr Nicette said.

Successful applicants have also been advised that if the money disbursed is not being used well, the applicant will be requested to reimburse the fund, Mr Nicette noted.

Mr Nicette is calling on all successful applicants to use the money wisely and to use this opportunity to build something for themselves and continue to contribute towards the economic development of the country.