The R100-million Gauteng Rebuilding Fund, which aims to support small firms that have been negatively impacted by both the Covid-19 pandemic and the recent unrest that ravaged many businesses in KwaZulu-Natal and Gauteng in July, was officially launched on Tuesday.
The damage to the Gauteng economy caused by five days of unrest, property destruction and looting is currently estimated at R3.5-billion.
The fund has been capitalised through a R50-million contribution from the Gauteng provincial government and a further R50-million raised from the Industrial Development Corporation.
Economic Development, Environment, Agriculture and Rural Development MEC Parks Tau said the fund had been set up specifically to support small, medium-sized and microenterprises (SMMEs) that were uninsured.
“In Gauteng more than 18 200 people lost their jobs as a result of the unrest and with 48% of SMMEs uninsured, it would be difficult for them to return to work and business soon,” Tau said at the launch.
The funding, which will be offered as a 50/50 blend of loans and grants, is intended to help businesses cover rebuilding costs, repairs, replacement of infrastructure, inventory, equipment and critical supplies.
It will also cover increased business security and employee costs.
“This funding will not be open to businesses that have claimed from insurance,” Tau stressed, adding that the funds were also not meant for the financing of normal expansions, payment of non-operational expenditure or to finance of new enterprises.
Qualifying Gauteng enterprises can apply for support online, through the Gauteng Enterprise Propeller (GEP) online application system at www.gep.co.za, or in-person at the GEP regional offices.