Durban — With two weeks remaining until the first anniversary of the April floods, KwaZulu-Natal MEC for Economic Development, Tourism and Environmental Affairs (Edtea), Siboniso Duma, has outlined details of the province’s flood relief fund.
The fund is for businesses affected by the April and May 2022 and February 2023 floods.
Duma said the Edtea Flood Relief Business Support Fund to assist businesses impacted by the floods of April/May 2022 and February 2023.
He said they understood the difficulty of financial recovery from the disruptions to business operations. This fund forms part of the government’s ongoing contribution to assist businesses to bridge the gap to restore trade and resurrect jobs.
“We will continue to work together with the business community and civil society groups to drive the economic recovery of the province. This fund was specifically established to assist with the reviving of business in order to accelerate social, economic, and spatial transformation in KZN. Priority for funding will be given to businesses that are based in the township, rural areas, and small towns impacted by the floods,” Duma said.
“The funding of up to R1.5 million, per applicant, will be administered by Trade & Investment KwaZulu-Natal (TIKZN).”
The Flood Relief Business Support Funding is intended to assist the following types of affected businesses:
- Businesses whose trading conditions and operations were impacted negatively by flooding in KwaZulu-Natal (KZN);
- Businesses in existence and operational prior to floods;
- Businesses in the townships, rural areas and small towns will be prioritised;
- Small and informal sector businesses that have suffered the effects of the flooding will also be prioritised;
- This fund is targeting uninsured businesses. However, the committee will exercise its discretion to support, to a certain extent, under-insured businesses and,
- Businesses must be owned by South African citizens.
Duma explained that the Flood Relief Business Support will fund impacted businesses for the following: the cost of clean-up attributed to flood damage, the replacement of movable assets/equipment associated with the business destroyed/damaged, refurbishing the office/business infrastructure, furniture and fittings, replacement of lost capacity and associated stock,
It will also fund working capital shortfalls (salaries, wages, lease obligations, etc., maximum three months) due to supply chain disruptions which could result in delayed receipt of raw material and subsequent cancellation of sales orders, replacement of critical infrastructure, i.e., fencing, security doors, etc., to ensure business continuity and replacement of critical IT related equipment and software to ensure business continuity.
He added that in the liquor and tobacco industry, the funding will exclude the purchase of stock and products.
Duma said that eligibility criteria were:
- Business must be negatively affected by the flooding of April/May 2022 and February 2023;
- In possession of a sworn statement clearly stating the impact of floods to the business;
- Be a registered Business legal entity in South Africa (CIPC);
- Business must be owned by South African citizens;
- Must have been in existence and in operation prior to floods;
- Must be registered with the South African Revenue Service;
- Only affected businesses based in KwaZulu-Natal will be considered and
- Rural areas, townships and small town based businesses will be given priority.
He said the following businesses would not be eligible to apply:
- Labour brokers.
- Manufacturing and selling of ammunition.
- Sex trade.
- Non-profit organisations.
- Political organisations.
- Unrehabilitated insolvent shareholders and/or directors of applying entities.
- Speculative property development.
Duma added that the closing date for applications is April 21, 2023. Information on the Flood Relief Business Support Fund Application Forms and Guidelines can be downloaded from the TIKZN website at www.tikzn.co.za.
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