The German Agency for International Cooperation (GIZ), commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ), has launched a new funding scheme for South African startups called “develoPPP Ventures”.
The programme supports the growth stages of innovative South African small and medium-sized enterprises and growing businesses (SGBs) that have the potential to generate measurable positive social or environmental impact alongside financial returns.
Funding will be awarded within the framework of two rolling competitions to be held in 2024. If successful, startups can receive grants of up to €100,000 (US$106,950) towards growth investments to scale up their development-related business models.
The prerequisite is that the startup has already made some initial revenue from its product or service and has secured at least the same amount of additional funding from other sources through a matching fund model.
develoPPP Ventures’ funding is geared towards helping these companies surpass an initial threshold to become attractive enough to commercial (impact) investors and financial institutions.
SGBs must be registered in South Africa, already offer a relevant product or service to the market, and provide at least one annual financial statement to demonstrate initial turnover.
Additionally, you will need to submit a sound financial and strategic business plan document for the next three years. Your financial plan should provide insight into how you plan to use funds to grow, become financially healthy, and break even.
In addition to financial assistance, businesses will also receive technical assistance based on their unique needs to maximize their chances of success.
GIZ is supported by international startup ecosystem building organisation VC4A and local community-led angel investment group Jozi Angels, with develoPPP Ventures operating in South Africa.
Additional requirements and due diligence processes are part of the overall selection process and additional legal considerations will be taken into account prior to any engagement by GIZ.
Entries for the inaugural develoPPP Ventures competition in South Africa close on 30 June 2024.
If you are interested in the develoPPP Ventures funding scheme, you can apply here.
A free informational webinar will be held on June 25, 2024, where potential applicants can ask questions.
*Top image source: Image by senivpetro on Freepik.
Giz
