15 May 2024
The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) has launched develoPPP Ventures, a new funding scheme for start-ups in South Africa. The programme supports the growth phase of innovative South African small and growing businesses (SGBs) that have the potential to generate a measurable, positive social or environmental impact alongside financial returns.
The funding is decided within the framework of regular competitions, which will take place twice in 2024. If the application is successful, start-ups can receive a grant of up to EUR 100,000 towards a growth investment to scale up their development-relevant business model. Prerequisites are that the start-ups already generate initial revenues with their product or service and acquire additional funds from other sources of at least the same amount via a matching fund model.
develoPPP Ventures financing is tailored to raise these companies above the first threshold of becoming attractive enough for commercial (impact) investors and/or financial institutions. The SGB must be registered in South Africa, must have a relevant product or service already on the market and can prove first sales figures by providing at least one annual financial statement.
In addition, they must provide sound financial and strategic business planning documents over 3 years going forward. The financial planning should provide insight into how the funds will be used to grow, become financially sound and reach break-even.
Besides funding, the companies will receive technical assistance based on their specific needs to maximize their chances of success.
GIZ is supported by the international start-up ecosystem-building organization VC4A and the local community-driven angel investment group, Jozi Angels, with implementing develoPPP Ventures in South Africa.
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 first develoPPP Ventures competition for South Africa is currently open (from 15th May) until 30th June 2024.
SGBs interested in applying to the develoPPP Ventures funding scheme should visit www.develoPPP.de/en/ventures and/or contact develoPPPventures@giz.de
Additional information:
develoPPP is a funding programme of the BMZ. It is aimed at companies that want to invest sustainably in a developing or emerging country and expand their local operations. Prerequisites for support are a long-term business interest in the country and a sustainable developmental benefit for the local people.
develoPPP is implemented by two experienced partners in German development cooperation: DEG Impulse gGmbH and GIZ GmbH.
GIZ GmbH is a federal enterprise with worldwide operations. It supports the German Government in the field of international cooperation for sustainable development and international education. GIZ assists people and societies in shaping their own future and improving living conditions.
develoPPP Ventures is supported by VC4A. It is the leading platform supporting entrepreneurs, mentors, investors and business professionals, strengthening the startup community in Africa, Latin America and beyond.
develoPPP Ventures is supported by Jozi Angels. Members of the network are accredited investors who are committed to providing capital and supporting the growth of early-stage companies.
