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Township economy plays a significant role in the overall economy of the Free State province. In order to exploit the lucrative space, the Free State Department of Economic Development and Tourism has called on Micro, Small and Medium Enterprises (MSMEs) including Cooperatives to apply for online funding incentives.
The Free State MEC for the Department of Economic Development and Tourism Mr Ketso Makume committed during his 2025/26 Budget Vote speech that his department will be on a drive to assist MSMEs within the province in order to grow the economy of the Free State and create more jobs.
The incentives are aimed at providing financial and non-financial support for businesses to remain sustainable, acquire production equipment and machinery to create more jobs, and improve township economy.
Makume says the incentives provide a unique opportunity for the business owners, as they go beyond just funding but also empower the entrepreneurs to be more competent in their respective sectors in the township economy.
“Our MSMEs incentive is a unique fund that is meant to mainly address a particular gap in the funding landscape. It includes funding for business expansion.
In less than a month after the tabling of the departmental budget vote, we deliver on what we promised to the business community of the Free State. We are committed to ensuring that MSMEs have access to strategic resources such as skills, knowledge, network, and access to finance, amongst others, that will enable them to nurture their innovative ideas,” said the MEC.
Ketso Makume further added that the department aims to promote and facilitate financial as well as non-financial support to enhance financial inclusion by increasing access to finance for women, youth, and people with disabilities, township, and rural entrepreneurs.
The department has designed the following three incentives:
1). Spaza Shop Support Incentive – This funding incentive is targeted at informal traders and Spaza Shops with an annual turnover of less than R1 million. In this category, the enterprises will be supported with equipment, upgrade of business premises, training and stock to a maximum of R100 000.
Amongst the documents required include ID document, municipal business permit, proof of address, 51% or higher black owned or managed business, and SA citizen residing in Free State.
2). Small Enterprise Support– This specific funding focuses on small businesses with a turnover of less than R10 million, and enterprises will be assisted with the financial injection amounting to a maximum of R250 000 as per the business requirements.
This category’s critical areas are general retail, manufacturing, agro processing, aquaculture, travel/ accommodation / lodging/hospitality, waste economy, automotive repairs, digital technologies, health, and beauty
3). Medium Enterprise Support – the category is targeted at medium enterprises. It is aimed at providing expansion capital and co-funding contribution on behalf of the applicant to developmental funding institutions ( DFIs) or commercial banks to a maximum amount of R1 million.
Sectors falling under this category are chemicals, pharmaceuticals, automotive, green energy, manufacturing, agro-processing, Clothing/Textiles/footwear and leather (CTFL), hospitality and digital technologies.
Applications window period outlining the processes and the required documents will be opened and accessed on Friday, 11 July 2025, to 21 July 2025.
https://destea.client.kwantu.support/login
Successful applicants will have to enter into a funding agreement with the department.
It is also imperative to indicate that clients who still owe the department invoices for the previous funding, including those who have received letters of demand from the department, will not be considered for funding.
For more information, please contact the following officials:
* Spaza shop support Incentive–Ms Moipone Mohono on 082 559 7944
* Small Enterprise Support Incentive–Ms Tshidi Maleka on 066 051 1279
* Medium Enterprise Support–Ms Nnana Matlepe on 082 443 5513
* Industrialization Support, Ms Portia Nyokong on 082 828 0259.
Failure to comply with the qualifying criteria will result in automatic disqualification from funding consideration.
