Government encourages black-owned and managed construction firms in South Africa to make use of the Tirisano Construction Fund to grow their reach and revenue.
All the answers to your unique business lifestage questions
Are you a black-owned or managed construction and engineering business with aspirations to grow? But, are you finding it challenging to grow your company’s order book in these taxing economic times?
With a little bit of strategic thinking, you could leverage an opportunity that’s recently presented itself to grow your company’s capabilities – to take on more profitable projects. How so? By working with some of South Africa’s largest construction and engineering businesses as an enterprise partner.
More than a billion rands made available for business growth
Following the completion of an investigation into the construction industry (by the Competition Commission), national government and the companies involved in the dispute have come to a settlement agreement.
Related: What the future holds for engineering and construction businesses
A total of over R1.5 billion will be made available over the next 12 years, as part of a fund to grow small and medium black-owned or managed construction-related businesses.
The Industrial Development Corporation (IDC) has been appointed as administrator of this fund and will facilitate the process of applying funding and dispersal of capital. The IDC will also facilitate upliftment and development programmes using some of the funds.
IDC supervised programmes aim to:
- Develop and promote construction firms owned and managed by black entrepreneurs through the transference of skills
- Provide bursaries to black students in the construction and engineering fields, to enable them to grow into entrepreneurs in the sector.
How to comply with funding requirements
Small- and medium-sized construction and engineering businesses may sometimes find it challenging to comply with particularly onerous government and IDC requirements.
You can follow this succinct list of steps to ensure you comply with the requirements for funding. If you meet these requirements, it also makes it easier to apply for government tenders in future:
4 easy steps to secure funding from the IDC and South African government
Step 1: Ensure you have a valid tax clearance certificate for your business. Contact your nearest South African Revenue Service (SARS) branch to get the latest version of it.
Step 2: Get a copy of your business’ BEE certificate. If you don’t have one, you can hire an approved certification agency to audit your company and issue you with an up-to-date certificate.
Step 3: You need an affidavit to confirm your business is an EME (exempt-micro enterprise) that generates less than R10 million a year to qualify for this particular funding initiative.
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Step 4: Compile the following certified items into a folder:
- Registration documents that reflect your company’s official name
- Your business register number
- The date of registration of your business
- The names of any active directors or shareholders
- Copies of any shareholders’ certificates
- Copies of identity documents of all your company directors
- Audited and certified financial statements covering at least three years’ activity if available
- A letter from your insurer showing Public Indemnity Cover for at least R1 million
- A letter from the Department of Labour showing you contribute to the Unemployment Insurance Fund.
While compliance documents can be easy to put together, guarantees of cash flow and insurance for your business can be more challenging to acquire. Why not consult with Standard Bank’s construction sector experts about business growth solutions suited to these particular needs.
Contact the Industrial Development Corporation (IDC) on 0860 693 888 for more information on funding for company. Or you can click here for regional IDC contact centre information.