The German Corporation for International Cooperation (GIZ), acting on the directive of the German Federal Ministry for Economic Cooperation and Development (BMZ), has introduced a novel initiative named develoPPP Ventures, which is specifically designed to provide financial support to burgeoning startups in South Africa.
This initiative, develoPPP Ventures, is particularly focused on nurturing the expansion stage of promising South African small and growing businesses (SGBs) that demonstrate the capability to create a tangible and beneficial impact on society or the environment, while also achieving economic gains.
The allocation of funds under this program is determined through a series of competitive rounds. Eligible startups stand a chance to receive grants amounting to a maximum of EUR 100,000 (equivalent to approximately US$110,000). This grant is intended to be invested in scaling up their business models that contribute positively to development.
The financial support provided by develoPPP Ventures is strategically designed to elevate these enterprises to a level where they become sufficiently appealing to draw the attention of commercial investors or financial institutions for further investment. To qualify for this funding, a South African SGB must fulfill certain criteria: it must be officially registered in South Africa, it must have a market-ready product or service, and it must demonstrate initial market traction by presenting at least one annual financial statement that shows some sales.
In addition to the monetary grant, the selected companies will benefit from bespoke technical assistance that caters to their individual needs, thereby enhancing their prospects for success. To effectively roll out the develoPPP Ventures program in South Africa, GIZ collaborates with VC4A, a global organization dedicated to building startup ecosystems, and Jozi Angels, a community-based group of angel investors.
Applications for the first develoPPP Ventures competition for South Africa are open here until June 30.
