The government has partnered with Nedbank to provide R40 million in business restart grants to 40,000 informal fruit and vegetable traders.
The Department of Small Business Development announced the partnership in a statement on Monday.
The traders will receive R1,000 each to buy stock as part of the Department’s Township and Rural Enterprises Programme (TREP).
“The focus of the TREP is to support enterprises based in townships and rural areas and also micro and informal businesses to restart, rebuild and improve their businesses as part of the reconstruction and recovery of the South African economy,” Small Business Development Minister Khumbudzo Ntshavheni said.
Ciko Thomas, Group Managing Executive, Retail and Business Banking, added that the informal sector “is just as vital” to South Africa’s economic recovery as the formal sector.
“Financial service providers in both the public and private sector have the ability to jumpstart this important job creator,” he said.
How to apply for informal traders grant
Informal traders wishing to apply for the R1,000 grant must register on the national SMME website for small business funding: https://www.smmesa.gov.za/.
The main requirements include personal details, such as your name, South African ID, address and contact, and a valid municipal trading permit.
Once registered, informal traders can apply for the grant by dialling *120*001# on their mobile phones and selecting option 6 “Apply.” Follow the easy prompts to complete the application.
Successful applicants will receive the grant via a Nedbank MobiMoney account, which is automatically opened during the account application process.
“Traders will be able to pay fresh produce suppliers directly from their mobile wallet without needing to withdraw money. Fresh produce suppliers will be enabled to accept mobile wallets payments through Masterpass,” the Department said.
“Getting relief to people on the ground can be a challenging task. We, therefore, remain committed to providing the most relevant entry-level banking tools to offer consumers the benefits of formal banking at a minimal cost to them, even saving them time and resources,” Thomas added.