South Africa is experiencing an energy shortage that is having a profound impact on the economy. Township, small town and rural enterprises are significantly affected, particularly as they do not have the means and resources to implement mitigations to weather these impacts.
IDC is making available R200 million in the form of grant funding to end beneficiaries through strategic implementing partners (SIP’s) and Innovative agglomeration/aggregation solutions.
Back in February 2023, in the State of the Nation address, the President of the Republic declared a State of Disaster as the country grapples with the severe electricity crisis, stating that the “energy crisis is an existential threat to the economy and social fabric” of the nation. The Minister of Finance further pointed out that load-shedding is “threatening the survival of many businesses”.
Rolling power cuts have impacted on the country’s growth and increased the risk of recession. It is estimated that the economic costs associated with these electricity outages have reduced the country’s GDP by between 1 and 1.3 percent annually since 2007.
Put in another way, for businesses, unreliable electricity results in increased running costs and reduced productivity and profitability. It has been estimated that the loss to businesses and industries is approximately R1 billion per stage per day.
Mandate of the Township Energy Fund Grant Scheme
- IDC will appoint SIPs that meet the eligibility criteria and that will in turn identify end beneficiary enterprises through their own calls and assessments within communities.
- Through the SIP’s, provide grant funding to township, small town and rural enterprises negatively impacted on by the energy crisis.
- Funding to be utilised to provide capital equipment, limited operational expenses, technical support and training for end beneficiaries, aggregators, and direct clients.
- SIP’s to be afforded a maximum management fee of 15%.
In the Application, applicants must provide a background to and strong motivation for their proposal. What is the social and economic benefit of their proposal. How will it make a positive impact and meet the brief of the ‘Call’?
The Eligibility criteria for funding rests on well-established SIP’s that meet the minimum requirements in terms of network, reach and capacity to implement.
Head over to IDC South Africa for an understanding of the Evaluation and Funding Terms as-well as the submission of all Applications.
Township Energy Fund Presentation
