R30 000 grants available for informal businesses



Unlicensed local businesses could access government grants of up to R30 000 to sustain and propel their business if they agree to register for permits.

Local businesses have until Thursday, 30 September, to apply for the current round of funding.

This was revealed by the Department of Economic Development, Environmental Affairs and Tourism (DEDEAT) at an information session for informal business last month.

DEDEAT’s Mlungiseleli Kosi introduced the Eastern Cape Provincial Informal Business Policy Framework to informal traders at the session.

A roadshow is currently underway to educate informal traders on the minimum requirements of access to funding and how to fill in the application forms. The minimum requirements are:

  • The business should be operated and managed on a full-time basis by the owner.
  • The informal business must be in a township, rural community, or small town, and its operations must be based in the Eastern Cape province.
  • The business owner must be having a valid SA Identity Document.
  • More than 95% of supported businesses will be South African citizens by birth and not by naturalisation.
    The business must be in operation for a minimum of 6 months.
  • The business must have been issued with a license or permit by a relevant municipality where applicable.
  • Businesses must be willing to register through CIPC, SARS, and UIF within one month after receiving the application.
  • The business must have valid proof of residence – municipal bill account, lease agreement, proof from municipal council official or Traditional leader.
  • The business should employ between 70 and 80 % South Africans in its staff.

Local councillors were urged to identify informal businesses in their wards and vouch for the trader’s operations if the businesses did not have permits.

However, informal recycling business operators who attended the session expressed frustration with their inability to access informal business operation permits at Makana Municipality. LED Director Riana Meiring responded with a commitment to resolving this problem.

Informal food stalls on Beaufort Street. Photo: Makwena Manaka

“In terms of the permitting, up till now LED and planning had not issued permits. It was in the Department of Community Services and what happened was that they only issued permits for food and related businesses. We had a meeting with the Director of Community Services and asked them to sort this out so that we can issue permits to all sorts of businesses.”

Makana Local Municipality administration assistant Mtimbana Fulani said 48 informal business operators from tshisa nyamas, salons, manufacturing, agriculture, and the creative industry were among those in attendance for the session.

Attendees were informed about the application forms and given tips on effective ways to draft business plans.

If you have an informal business and want assistance taking it to the next level, you can call Fulani at 0466036091 or 0466036174 or visit the Makana LED office at 86 High Street.

A sowing business supported by the Assumption Development Centre. Photo: ADC


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