South Africa: Western Cape Digital Productivity Business Technology and Innovation Support Programme

The Department of Economic Development and Tourism (DEDAT): Business Technology & Innovation programme for Productivity Boost (The Fund) aims to tackle the challenge of low productivity in Western Cape firms to achieve greater competitiveness of firms in the region to match or beat international standards through the adoption of technology and of promotion of digital transformation.

The Western Cape Government’s Growth for Jobs Strategy seeks to affirm the province as the tech(nology), financial, innovation and design capital of Africa, through robust business, government, and community innovation, supported by academia (‘quad helix’). It is envisaged that the region will be characterised by strong technology ecosystems and centres of excellence in a range of industries and opportunities, contributing towards and improving the competitiveness and growth in existing firms, within a supportive enabling environment.

Focus Areas

The Fund will support projects and programmes with the following focus areas:

• E-commerce Development
• Technology Infrastructure
• Cybersecurity Measures
• Automation of Processes
• Digital Marketing Strategies
• Innovation and R&D
• Financial Technology (Fintech) Solutions
• Business Intelligence and Analytics
• Collaboration Tools

Categories

DEDATs’ Business Technology & Innovation Programme for Productivity Boost has established a Fund that will support initiatives under the following two (2) categories:

• Category 1: Individual Business: The Fund will provide support to individual businesses seeking to implement digital enhancement or transformation initiatives aimed at business productivity and competitiveness improvements.
• Category 2: Business Support Intermediary organisations: The Fund will also provide support to firms via intermediaries/organisations who implement business support programmes with a focus aimed at driving productivity improvements through the adoption of technology as well as support of digital transformation.

Submission Criteria

The proposals submitted must be structured and will be evaluated against the 2 categories.

• Category 1: Individual Businesses.
  • The Fund will provide financial support to businesses with initiatives aimed at driving digital transformation for productivity improvements and market access in their own businesses.
  • Business applying for funding support must meet the following requirements:
    • Demonstrate R1m-R50 million turnover per annum.
    • Registered with Companies Intellectual Property Commission (CIPC).
    • 100% owned by South Africans.
    • Proven operation duration of a minimum of 2 years.
    • Located in the Western Cape province.
    • A valid B-BBEE certificate or B-BBEE Exempt Micro Enterprise sworn affidavit should be submitted.
  • The financial support provided will be capped for individual business applications at R100 000.00 incl vat.
• Category 2: Business Support Intermediary Organisations
  • The Fund will provide financial support to projects and programmes that support SMME development with a specific focus on driving productivity and market access improvements through the adoption of technology and supporting the digital transformation of businesses. The intention of the Fund is direct beneficiary support and applicants will need to accommodate this into their proposals.
  • The intermediary/organisation must demonstrate that it provides co-funding for the requested amount or for the specific intervention which also includes the value of support and services currently provided. This can be financial, non-financial or in-kind support. A signed letter by the Chief Executive Officer (CEO)/ Chief Financial Officer (CFO) or similar executive authority confirming the value of own funding committed for the implementation of the proposed intervention must be submitted.
  • Intermediary Organizations applying for funding support must meet the following criteria:
    • Registered with CIPC.
    • 100% owned by South Africans.
    • Proven operation duration of a minimum of 2 years.
    • A valid B-BBEE certificate or B-BBEE Exempt Micro Enterprise sworn affidavit should be submitted.
    • The intermediary/organization can be based anywhere in South Africa; however, the beneficiary businesses must be exclusively based in the Western Cape.
  • The project or programme must at minimum support 5 SMMEs.
  • Business beneficiaries that form part of the programme must be based in the Western Cape, have been in operation for at least two years and employ a minimum of 5 (five) persons (including director/s).
  • Your application proposal should include a project implementation plan which must demonstrate that the project has commenced or can commence soon once an agreement has been signed by the Department. It also needs to explicitly indicate the nature of the support which will be implemented.

Qualifying Criteria

• The individual business or intermediary applying for support must be in operation for a minimum of two financial years. Signed annual financial statements for the two most recent financial years must be submitted as part of the application process (the guidelines in the Companies Act will be applied). The financial statements will be assessed against the going concern principle and the opinion of the independent auditor or reviewer.
• The minimum value of funding requested from the Department must not be less than R50 000 incl vat. This is applicable to both individual businesses or intermediaries.
• The project or programme must exclusively benefit SMMEs that are based and operating in the Western Cape.
• The Department will also require a valid BBBEE certificate or sworn QSE affidavit for the applicant organisation.
• In addition to the above, the identity document of the signatory to the agreement (should the application be successful an agreement will be entered with the Department) must be provided.
• The Department may require that all SMME beneficiaries of the fund participate in a preand post-assessment in order for the Department to track the impact of the changes on the productivity of the business. This may extend up to 2 years post the intervention This requirement will be included in the contracts with successful applicants.

For more information, visit Western Cape Government.