Free State Economic, Small Business Development, Tourism and Environmental Affairs on MSME support incentives

Subsequent to the commitment highlighted during the tabling of the 2025/26 Budget Vote Speech, the department calls on Free State spaza shop owners, informal business traders, Micro, Small & Medium Enterprises (MSMEs), including cooperatives, to apply for online funding incentives.

The incentives are aimed at providing financial and non-financial support for businesses to remain sustainable, acquire production equipment and machinery to create more jobs, and improve the township economy.

The department has designed the following three incentives:

• Spaza Shop Support Incentive
  This funding incentive is targeted at informal traders and spaza shops with an annual turnover of less than R1 million. In this category, the enterprises will be supported with equipment, upgrade of business premises, training and stock to a maximum of R100 000.
  Amongst the documents required include ID document, municipal business permit, proof of address, 51% or higher black-owned or managed business, and SA citizen residing in Free State.

• Small Enterprise Support
  This specific funding focuses on small businesses with a turnover of less than R10 million, and enterprises will be assisted with the financial injection amounting to a maximum of R250 000 as per the business requirements.
  This category's critical areas are general retail, manufacturing, agro-processing, aquaculture, travel/accommodation/lodging/hospitality, waste economy, automotive repairs, digital technologies, health, and beauty.

• Medium Enterprise Support
  The category is targeted at medium enterprises. It is aimed at providing expansion capital and co-funding contribution on behalf of the applicant to developmental funding institutions (DFIs) or commercial banks to a maximum amount of R1 million.
  Sectors falling under this category are chemicals, pharmaceuticals, automotive, green energy, manufacturing, agro-processing, clothing/textiles/footwear & leather (CTFL), hospitality and digital technologies.

"Our MSMEs incentive is a unique fund that is meant to mainly address a particular gap in the funding landscape. It includes funding for business expansion. In less than a month after the tabling of the departmental budget vote, we deliver on what we promised to the business community of the Free State. We are committed to ensuring that MSMEs have access to strategic resources such as skills, knowledge, network, and access to finance, amongst others, that will enable them to nurture their innovative ideas," said MEC.

MEC further added that the department aims to promote and facilitate financial as well as non-financial support to enhance financial inclusion by increasing access to finance for women, youth, and people with disabilities, township, and rural entrepreneurs.

Applications window period outlining the processes and the required documents will be opened and accessed on Friday, 11 July 2025, to 21 July 2025.
🔗 Apply here: https://destea.client.kwantu.support/login

Successful applicants will have to enter into a funding agreement with the department. It is also imperative to indicate that clients who still owe the department invoices for the previous funding, including those who have received letters of demand from the department, will not be considered for funding.

For more information, please contact the following officials:

• Spaza Shop Support Incentive – Ms Moipone Mohono on 082 559 7944

• Small Enterprise Support Incentive – Ms Tshidi Maleka on 066 051 1279

• Medium Enterprise Support – Ms Nnana Matlepe on 082 443 5513

• Industrialization Support – Ms Portia Nyokong on 082 828 0259

Failure to comply with the qualifying criteria will result in automatic disqualification from funding consideration.

Enquiries:
Mojalefa Mphapang
Departmental Spokesperson
Cell: 072 274 1734

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