GIZ brings develoPPP Ventures to South Africa
South Africa, 20 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 (in 2024 it takes place twice a year). If the application is successful, start-ups can receive a grant of 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 15 th 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.
About GIZ
The Deutsche Gesellschaft für Internationale Zusammenarbeit (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 their living conditions. www.giz.de/en.
On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), GIZ has worked in South Africa since 1994 and opened its offices in 1996. The Country Office is also responsible for operations in Lesotho and Eswatini. The activities focus on Economic Development and Employment, Energy, Just Transition, Agriculture, Governance and Democracy.
About develoPPP
develoPPP is a funding scheme of the German Federal Ministry for Economic Cooperation and Development (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.
With develoPPP Classic and develoPPP Ventures, the scheme offers customized funding opportunities for already well-established enterprises as well as aspiring start-ups. develoPPP is implemented by two experienced partners in German development cooperation: DEG Impulse gGmbH and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. www.develoPPP.de/en
About VC4A
VC4A strengthens the global start-up community by connecting entrepreneurs creating innovative and scalable businesses with the knowledge, network and funding they require to succeed. In collaboration with a growing network of partners, the VC4A community of entrepreneurs, mentors and investors are central to bolstering the entrepreneurial ecosystem globally and offer a direct channel for anyone serious about being part of the next great success story. https://vc4a.com/
About Jozi Angels
Jozi Angels is an angel investor network based in Johannesburg, South Africa. We invest our personal funds in innovative, early-stage companies, helping them grow through the assets we bring – knowledge, networks, and capital. We source, screen, assess, structure, and invest in deals.
Through our broader network, we have sourced the hottest startups and collectively invested in over 50 startups. Our members are approved investors serious about providing capital and aiding growth in early-stage companies. https://www.joziangels.co.za