THE Eastern Cape Development Corporation (ECDC) has announced the launch of the Export Market Access Fund, a fund that aims at supporting efforts towards accessing global markets by Eastern Cape businesses, stimulating job creation, and positioning the Eastern Cape province as a reliable source market for exports.
The corporation says this fund is in line with the Eastern Cape Export Strategy.
“The Eastern Cape Export Strategy is aimed at positioning the province as a competitive location for exports and export-oriented investments, whilst growing the pool of value-added exporters of goods and services in the province.”
“This is done through facilitation and improvement of exports and creation of a conducive environment in which government, business and communities collaborate in exporter enterprise development and export promotion,” said ECDC spokesperson, Nobulali Myataza.
She further said that The Export Market Access Fund assists new and existing exporters in the Eastern Cape by providing financial support for technical export requirements needed for entrance into the international market.
“The fund provides export funding to export-ready local companies, assists with packaging and positioning of local products and services for export markets, addresses various technical needs and challenges relating to international market access faced by local companies, and positions the Eastern Cape Province as a reliable source market for exports while stimulating job creation through increased exports,” added Myataza.
The Eastern Cape Chamber of Business has welcomed the news of the new fund while calling for a reduction of red tape, to make it easy for businesses to apply for and get the funding.
“This is a great move by the ECDC if this fund will reach each and every small business in the province and the qualification requirements are loosened for small, medium and micro enterprises to apply. Small businesses have been crying for support for a long time and we hope that this fund can be changed into a grant, or 70 percent grant and a 30 percent loan with interest below that of commercial banks,” said Eastern Cape Chamber of Business general secretary, Dr Andile Nontso.
The ECDC says the fund provides finance in the form of non-repayable cost-sharing financial incentives where businesses that are 51% black, female, youth or disabled-owned are eligible for funding capped at R350,000, with 80 percent of the approved amount being covered by the ECDC, and 20 percent by the applicant.
Funding support for applicants that do not fall into the above-mentioned category is capped at R300,000, with the same cost-sharing ratio applicable.
Access to the fund, subject to budget availability, is open throughout the year.
Application forms for the Export Market Access Fund can be downloaded from the ECDC website at www.ecdc.co.za.
