ANNOUNCEMENT 26 Mar 2020

On 26 March 2020, DTIC in partnership with NEF introduced a loan scheme for businesses having greater than fifty percent black shareholding and management control.

 
 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

National Empowerment Fund, Media Statement, “R200m set aside for Black Business to fight COVID-19”. Available at: https://www.nefcorp.co.za/wp-content/uploads/2020/03/Media-Statement-NEF-COVID-19-R200m-Fund-March-2020-website.pdf

Inception date: 26 Mar 2020 | Removal date: open ended

State loan

On 23 March 2020, the Department of Trade, Industry and Competition (DTIC) in partnership with National Empowerment Fund (NEF) announced introducing a loan scheme for certain local businesses in need of financing to manufacture and supply a range of medical products to aid in fighting COVID-19.

For the loan scheme, DTIC has allocated R200 million (USD 11.5 million) under the COVID-19 Black Business Fund. The maximum amount of loan per applicant is R10 million (USD 560 thousand). The maturity of the loan is up to 60 months with up to 12 months payment moratorium at a 0% fixed interest rate. After 12 months a fixed interest rate of 2.5% will apply.

The loan will be granted to businesses having greater than fifty percent black shareholding and management control.

Notable, identified products to be funded to fight COVID-19 are hand sanitizers, disinfectants, hand soaps, medical protective clothing, disposable plastic gloves, facial masks, detergents/cleaning products, steel beds, linen & hospital clothing, medical supplies dispensers (water, soap & sanitizers), toilet paper, plastic bottling & molding, matrasses & sponges disposable caps and alcohol-based wipes.