Nomvula Dlamini, founder of a township-based clean energy start-up KleenGas, believes a recent Memorandum of Understanding between the Technology Innovation Agency (TIA) and the Small Enterprise Development and Finance Agency (Sefda) will boost the prospects of SME innovator businesses like hers.
The MoU aims to align the strengths and resources of the two entities to back innovators, start-ups, and small businesses across the country.
According to the partners, the partnership “marks a new era of collaboration to strengthen South Africa’s start-up and SMME ecosystem by unlocking access to finance, technology infrastructure, and business development services.”
It also introduces joint funding initiatives, shared pilot manufacturing facilities, and co-location programmes aimed at improving regional support for businesses in underserved townships and rural areas. Dlamini, from Pretoria, highlighted some of the challenges faced by SMEs in the sector.
“We’ve had great prototypes but struggled to scale because there’s never enough early-stage support. If this partnership really streamlines access to both funding and technical expertise, it could change the game for businesses like mine,” she said.
Sabelo Nkosi, who runs an agri-tech venture in Soweto, echoed the sentiment.
“Most of us spend more time knocking on doors than actually building. What excites me here is the idea of a single, coordinated pathway that cuts out duplication and puts us in touch with the right kind of support when we need it,”he said.
TIA board chairperson Loyiso Tyira said the MOU is an exciting and critical step in the entity’s efforts to forge meaningful partnerships that amplify its tangible impact.
Tyira added that the collaboration is part of TIA’s strategic review process, which focuses on creating an enabling ecosystem where small enterprises and co-operatives can grow without being slowed down by fragmented support structures.
The partnership arrives at a crucial time, as entrepreneurs continue to face difficulties attracting early-stage investment. Through initiatives such as the proposed Joint Early-Stage Venture Capital Fund of Funds and a Joint Seed Fund Programme, TIA and Sedfa aim to unlock capital for promising, technology-driven ventures.
Nonzuzo Makanda, Sedfa board chairperson, stressed that the collaboration would provide more than just financial assistance.
“The TIA and Sedfa are the only government entities that offer pre-seed funding to SMMEs in South Africa,” Makanda explained.
“Together, we are building an ecosystem that empowers innovators to commercialise their ideas, create jobs, and drive economic inclusion.”
Azwi@vutivibusiness.co.za
