Deutsche Gesellschaft für Internationale Zusammenarbeit (Giz) has introduced DeveloPPP Ventures, a new funding opportunity for South African companies, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
The allocation of funds is determined through regular competitions, which will occur twice a year in 2024. Startups can receive a grant of up to R2 million toward a growth investment to expand their development-relevant business model if their application is accepted. It is necessary for the startups to have already started making money from their product or service and to use a matching fund model to raise more funding from other sources in an amount equal to or greater than the profits they have already made.
The goal of DeveloPPP Ventures’ investment is to help businesses cross the initial barrier to become sufficiently appealing to commercial (impact) investors and/or financial institutions. The SGB needs to be registered in South Africa, have a product or service that is already in demand and be able to demonstrate first-quarter sales numbers with the production of at least one annual financial statement.
Furthermore, during the next three years, the company must deliver strong financial and strategic business planning papers. The way the money will be used to expand, become financially stable, and break even should be clear from the financial strategy. In addition to financial support, the companies will receive customized technical advice to optimize their prospects of success.
Giz officials said, “Please note that additional requirements and due diligence processes are part of the overall selection process and that additional legal considerations will be taken into account before an engagement by Giz.”
The South African DeveloPPP Ventures competition is presently available from May 15, 2024, to June 30, 2024.