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Economic recovery support for affected businesses is open for application

The Kosi Bay



economic recovery Minister Ebrahim Patel

The Department of Trade, Industry, and Competition (dtic) has stated that the economic recovery assistance measures announced by Minister Ebrahim Patel a fortnight ago are now open for applications by impacted firms.

The R3.75 billion plan is intended to help companies that were damaged or destroyed during the violent looting and unrests that occurred in KwaZulu-Natal and Gauteng last month.

The dtic and its Development Finance Institutions, the Industrial Development Corporation (IDC) and the National Empowerment Fund (NEF) have collectively put together a funding package in support of various business recovery interventions.

The goal is to assist impacted firms with zero-interest industrial loans to reconstruct infrastructure, including equipment, fittings for the premises, stock, and working capital.

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This comprises a R100 million matching grant facility to assist small and informal enterprises in impacted townships, rural regions, and small towns.

The fund is intended to address the socio-economic problems that these firms are facing as a result of the current upheaval.

Furthermore, R400 million has been put aside as part of the Manufacturing Competitiveness Enhancement Programme (MCEP) Economic Stabilisation Fund.

The fund will assist manufacturing firms and related services that have been harmed by the turmoil, particularly those hit by supply chain interruptions.

The fund will offer concessionary funding to affected companies through interest-free loans to preserve and grow jobs as well as restoration of value chains.