Recognising the negative impact of loadshedding on SMMEs and the additional costs associated with adopting alternative energy sources, the SAB Foundation has partnered with the Industrial Development Corporation (IDC) to create and co-fund the Township Energy Fund.
This R15 million initiative is aimed at providing grant funding to small, medium, and micro-sized enterprises in townships, rural areas, and small towns, enabling them to implement renewable energy solutions, restabilise operations and catalyse their business growth.
The IDC has committed R10 million towards the fund, with a co-contribution of R5 million pledged by the SAB Foundation. These funds will be used towards the installation of renewable energy solutions for carefully selected alumni who have been supported over the past 10 years by the SAB Foundation’s entrepreneurial programmes.
“Recently we conducted a survey amongst our entrepreneurs which revealed that 60% of businesses have experienced a reduction in production capacity due to load shedding,” explains Bridgit Evans, Executive Director of the SAB Foundation. “This not only affects their current operations, but also hampers future growth and expansion for these business owners.”
“One example given by one of the survey respondents is that the power cuts taking place during their manufacturing process has impacted production momentum and rhythm, resulting in wasted material,” she reports. “This forces business owners to find alternative power sources, such as generators, which can be expensive to operate and maintain.”
According to Evans, the fund will support businesses in high-energy-consuming sectors, such as retail, construction, hospitality, mining, agriculture, and manufacturing. Grants will range between R50 000 and R250 000, based on a needs analysis to ensure customised support for each business.
“The energy crisis has placed a significant burden on small business owners, many of whom are already struggling to keep their doors open,” says Evans. “Through the roll out of the Township Energy Fund, we aim to provide these businesses with the resources they need they need to adopt renewable energy solutions, reduce their operational costs, and focus on growth rather than survival.”
“We will be prioritizing green energy solutions,” she adds. “This will not only address immediate energy needs, but also contribute to long-term environmental sustainability.”
Stuart Bartlett, Programme Manager at the IDC, stated, “The IDC is dedicated to enabling sustainable development and growth for South African businesses. By investing in renewable energy solutions, we are not only helping businesses to withstand load-shedding, but also to expand their operations sustainably.”
In addition to grant funding, beneficiaries will also continue to receive comprehensive business development support, including tailored mentorship, market access assistance, media and brand building, and investment readiness training. This holistic approach aims to foster sustainable business growth and resilience and the face of ongoing challenges.
“The electricity crisis in South Africa is a major issue affecting small businesses, eroding their income and threatening their viability,” concludes Evans. “While this initiative addresses the current crisis, green energy means a long term reduction In operating costs, hopefully leading to increased profitability, resulting in a much more sustainable future”.
