By: Siphiwe Hlope

The Gauteng Enterprise Propeller (GEP), in partnership with Industrial Development Corporation (IDC), recently launched the Gauteng Rebuilding Fund as a response to the negative economic impact of the Covid-19 pandemic and the July civil unrest on businesses in Gauteng.

An entity of the Gauteng Provincial Government, GEP contributed R50 million, and the IDC matched its contribution rand-for-rand, bringing the fund’s total value to R100 million. The civil unrest ravaged economic infrastructure in various Gauteng townships, especially in the cities of Ekurhuleni, Johannesburg and Tshwane.

Among other things, the fund’s purpose is to assist businesses that were not covered by insurance, and were not assisted through other funds, to rebuild, repair, and replace damaged infrastructure and critical inventory. The fund will provide relief to both formal and informal businesses in what is known as blended financing, a combination of 50% loan and 50% grant. Funding will be capped at R1 million for smaller but formal enterprises in distress, a grant of up to R50 000 will be given to qualifying informal businesses.

Since the fund’s launch in August 2021, over 500 applications have been received by GEP. Businesses that have applied range from small businesses in the tourism sector, entertainment and construction. GEP is currently processing all applications that have met the criteria and whose documentation is complete. However, many businesses that have applied still require more time and assistance in completing their applications and collating all the needed information for their applications. GEP’s CEO, Saki Zamxaka, confirms that GEP has not set a closing date for the applications, which will allow businesses in need enough time to submit their applications.

“The application process remains open until the funds are depleted. Those applicants who have their applications declined on the basis of incomplete documents and incorrectly filled forms can still correct the errors and reapply,” emphasised Zamxaka.

Zamxaka urged applicants to check the requirements and ensure they were fulfilled before submitting the application. The requirements are as follows:

• Have a valid South African identity document.
• The business must Operate within Gauteng.
• It must be 100% owned by a South African citizen.
• It must have been in operation as of 01 June 2021 (a bank statement is needed to prove operations).
• If it is an informal trader, it must have an original and valid trading permit.
• If it is an SMME, it must be registered and compliant with CIPC and SARS.

For more information on requirements, applications and any other information related to the Gauteng Rebuilding Fund, please visit www.gep.co.za

STATEMENT BY MEC PARKS TAU TO ANNOUNCE THE R100 MILLION GAUTENG REBUILDING FUND ON THE 24 OF AUGUST 2021 AT THE WAR ROOM, WAVERLY OFFICE PARK

Good day ladies and gentlemen,

Acknowledge;
Chairperson of the Board at GEP, Ms Lebogang Mphahlele,
HoD for Department of Economic Development Blake Mosely-Lefatola
HoD for Department of Environment, Agriculture and Rural Development, Matilda Gasela
CEO at GEP, Saki Zamxaka,
Members of the media,
And all stakeholders in attendance.

INTRODUCTION

We were allocated R250M via the Gauteng Enterprise Propeller to gear private and public sector investments, aimed at economic revitalization. To enable this to happen we structured the fund as a wholesale lending instrument, aimed at focusing our efforts on working capital financing. This focused approach will ensure that we support the full diversity of township-based business, targeting the:

1. SMME
2. Informal sector
3. Taxi economy
4. Township property sector
5. Township retailers

Member of the Executive Council (MEC)

Last month we presented the Gauteng Government’s Economic rebuilding approach are aimed at reigniting the economy. It was just about 6 weeks ago that we witnessed the looting of business and government premises. The 5 days of unrest caused an immense damage to the Gauteng Economy, currently estimated at R3,5Bn. It was an unrest in which small enterprises suffered the most, with some losing the entire stock and infrastructure. In Gauteng more than 18200 people lost their jobs as a result of the unrest and with 48% of SMMEs uninsured, it would be difficult for them to return to work and/ business soon.

Following the recent unrest, the Gauteng Department of Economic Development conducted a survey to get valuable information from the affected SMMEs, and this campaign has also reached local radio stations. If there is a message for us all to learn from these recent events, it is that there’s always a risk of violence in countries with exceptionally high-income inequality.

IMPLEMENTATION IN ACTION

As a responsive government we cannot afford to allow the small enterprises to collapse, hence we have gone to the roundtable discussions and started targeting funds internally and through partnerships, that can be better used to reignite the economy.

APPLICATIONS FOR GAUTENG REBUILDING FUND OPEN ON 24 AUGUST 2021

GEP will open funding applications for the Gauteng Rebuilding Fund from Today, 24 August 2021. The Gauteng Rebuilding Fund is exclusively for Gauteng SMMEs that were affected by COVID 19 and looting.

The Gauteng Rebuilding Fund is the Gauteng Provincial Government’s response to the recent unprecedented challenges faced by small businesses emanating from COVID 19 and the riots that took place in July. The R100m fund includes a R50m contribution by the Gauteng Provincial Government and a further R50m from the Industrial Development Corporation (IDC).
The funding, which will be offered as a 50/50 blend of loan and grant, will help businesses cover rebuilding costs, repairs, replacement of infrastructure, inventory, Member of the Executive Council (MEC) equipment and critical supplies. It will also cover increased business security and employee costs.

This funding will not be open to businesses that have claimed from insurance, the financing for normal expansions, payment of non-operational expenditure such as bonuses and financing of new enterprises.

SMMEs can apply on www.gep.co.za or visit one of our regional offices.

Enquiries on previous applications must be sent to enquiries@gep.co.za

CONCLUSION

The time is now for those small enterprises to use the recent experiences to review their operations to be better prepared for the future. The R250 million is now accessible to our mothers, fathers, brothers, sisters and children who need most. The R100M Rebuilding Fund is a first step towards bringing economic relief to the most informal enterprises, who play a critical role in our Township economy.

Walter Sisulu once said;
“It is a law of life that problems arise when conditions are there for their solution.”

Now is the time.

I THANK YOU