Black-owned small enterprises can access the Black Business Supplier Development Programme (BBSDP) and receive a grant of up to R1 million. The cost-sharing grant is aimed at assisting SMEs to improve their competitiveness and sustainability to become part of the mainstream economy and create employment.
The programme provides grants to a maximum of R1 million:
- R800 000 for tools, machinery and equipment on a 50:50 cost-sharing basis
- R200 000 for business development and training interventions per eligible enterprise to improve their corporate governance, management, marketing, productivity and use of modern technology on a 80:20 cost-sharing basis.
Lesedi Seforo of Ndala Consulting Services explains, “It basically pays for 50% of the machinery or equipment that a black-owned SME wants to buy. If the business doesn’t use the whole R1 million in the first year, they can use it up in future years until the grant has been exhausted.”
Seforo continues, “Let’s say the business wants to buy machinery or equipment worth R200 000. The Department of Trade and Industry will pay for half of that. The money is paid directly to the supplier from whom the assets are acquired.”
Interested black entrepreneurs can find more information by visiting the DTI’s website.