Businesses large and small have offered free goods and services, grants, and other support to small businesses as a result of the pandemic, demonstrating the people of South Africa’s heart and resilience.
CDI Capital has announced a new round of small business applications to the CDI Capital Growth Fund.
The fund’s goal is to help businesses in their early phases of development and to create employment.
Erika Elk, Group-CEO of the Craft and Design Institute commented on the project in a statement. “We believe that small businesses are vital to growing our economy and creating jobs – even more so post the pandemic and recent social unrest. With meaningful, socially responsible investment we can maximize the potential of local entrepreneurs, building a generation of South African innovators, and a strong, inclusive economy,” she said.
The fund created 464 jobs in 45 businesses over the three years from 2012 to 2015, with participants growing their combined annual revenue by 73%.
The fund’s second round of investments resulted in 447 new job opportunities at 20 national businesses, and it seeks to increase this number in the coming three months by identifying 20 new businesses in need of assistance.
Arron Bastable, Director of Barrydale Hand Weavers, explained the fund’s impact on his business.
“This funding has allowed our business to not just survive but grow through the pandemic. Our turnover has increased 35% since 2019, despite the harsh lockdowns. This enabled us to increase wages in October 2020 and create five new jobs in 2020. We anticipate further revenue growth and expect to create three to five additional jobs this year. We cannot thank the CDI and its partners and supporters enough, it has been so positive for our business; thank you!”
Businesses must meet the following criteria to be considered for CDI’s Growth Fund:
- Be a SA-owned business, with the controlling interest of the enterprise (51% of the issued ordinary share capital) being held by SA citizens with a valid SA ID OR a SA Registered legal entity itself controlled by South African citizens with a valid SA ID.
- Operate within SA, including but not limited to projects, programmes, or enterprises of the business.
- Be an existing business, at least one year old (preference will be given to businesses that have been trading for 2 years or more) with turnover or assets above R600 000 (if this was pre-Covid-19 a business will still be eligible).
- Match 20% of the contribution of the Fund through a cash contribution.
- Must create one job for every R21 000 grant investment, with a minimum of five jobs.
- Be tax compliant and supply a valid Tax Compliance Status (TCS).
