SMME FUNDING

The Gauteng Provincial Government, the Industrial Development Corporation (IDC) and the SA SME Fund launched the SMME Crisis Partnership Fund, a R300 million debt fund for small businesses based in Gauteng townships this week. There are more than 2 million formal and informal small businesses in SA, the majority of which are township-based, which are unable to access, or do not qualify for funding from the formal banking sector. Without this funding, they are unable to grow their businesses, create jobs or participate meaningfully in the economy. The new Fund seeks to remedy this. Each of the partners have contributed R100 million towards the Fund. The Gauteng Provincial Government’s share provides a first loss guarantee, meaning it will assume the first portion of any losses.