COMPANIES can start applying for funding under the R3.75 billion economic recovery package aimed at supporting the restoration of businesses adversely affected by the civil unrest in July.
The Department of Trade, Industry and Competition (dtic) announced yesterday that the economic recovery support interventions were open for affected businesses to apply.
The R3.75bn package is for businesses adversely affected during the violent looting and unrest that took place in KwaZulu-Natal and Gauteng last month.
At least 161 shopping malls, 11 warehouses and eight factories were looted and vandalised, leaving R50bn damage that severely affected the supply-chain of goods and economic activity.
The current estimated cost of damage to property and equipment in eThekwini alone is R15bn, constituting about a third of the overall damage.
The dtic and its development finance institutions, the Industrial Development Corporation (IDC) and National Empowerment Fund have collectively put together a funding package in support of various business recovery interventions.
The aim is to provide industrial loan support at a zero percent interest rate to the affected companies, which must go towards rebuilding of infrastructure, including equipment, fittings for the premises, stock and working capital.
“Part of the economic rebuilding package is a comprehensive package by the IDC, which offers funding support for businesses and communities affected by the unrest to the tune of R1.5bn,” it said.
“This includes a R100 million matching grant facility to support small and informal businesses in the townships, rural areas and small towns affected by the unrest.
“The fund is designed to target the socio-economic challenges facing these businesses as a result of the recent unrest.”
Two weeks ago, dtic minister Ebrahim Patel assured the business sector that the government would pull out all stops to assist businesses affected by civil unrest to get the economy going again.
Patel said the government had reprioritised nearly R4bn to help businesses affected by the riots and looting in KwaZulu-Natal and Gauteng a month ago.
In addition, R400 million had been set aside under the Manufacturing Competitiveness Enhancement Programme Economic Stabilisation Fund.
The fund will support manufacturing companies and related services affected by the unrest, including those impacted by associated supply chain disruptions.
This fund will offer concessionary funding to affected companies through interest-free loans to preserve and grow jobs as well as restoration of value chains.
Those wishing to apply for relief can go to: http://www.thedtic.gov.za/ wp-content/uploads/Economic_Rebuilding_Package.pdf
BUSINESS REPORT