Business: R700m Now Dedicated to Assisting Township Entrepreneurs
- Millions of rands has been set aside to assist the Township and Rural Entrepreneurship Programme (TREP) in South Africa
- R700 million will be helping traders in the informal sectors, namely small, medium and micro-sized enterprises
- The TREP initiative was started in 2014 in an attempt to assist those in the informal sector who are facing various challenges
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Approximately R700 million has been set aside for South Africa's Township and Rural Entrepreneurship Programme (TREP) which provides financial aid to small businesses in the informal economy.
Small, medium and micro-sized enterprises (SME) who trade frequently in the informal sectors allegedly make up a third of total turnover generated by the country's formal business sector.
The government formed the TREP initiative in 2014 in retaliation to the informal sector facing multiple challenges one of its biggest challenges in obtaining funding through formal financial establishments.
Source: Getty Images
The TREP initiative was approved and obtained a budget of R413 million before the Covid-19 pandemic to be used to offer loans, grants, and business support services to qualifying township and rural-based enterprises.
A total of R694 million provided to TREP will be used to aid an estimated 24 000 township and rural enterprises across eight industry-specific programmes. Around 90% of the total budget will be used to offer direct financial and operational aid to entrepreneurs, whilst the remainder covers administrative fees.
According to BusinessInsider, the TREP budget will be divided in the following way:
- Autobody repairs and mechanics – R300 million
- Spaza shops – R150 million
- Clothing, textile, and leather – R70 million
- Butcheries- R42 million
- Hairdressers and personal care – R36 million
- Bakeries and confectioneries – R17 million
- Fruit and vegetable sellers – R13 million
- Shisanyama and cooked food – R13 million
702FM also shared a few points about the new TREP budget.
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In other business news, Briefly News recently reported that 1 July, 2021 will mark the date for which the Protection of Personal Information (PoPI) Act, or PoPIA, will be fully implemented as businesses hurry to ensure that they meet the standards of compliance.
The implementation of the PoPI Act in South Africa emphasises the country’s commitment to data security.
A key threat for businesses may come in the form of a regulator with the power to enforce substantial penalties following any infringement.
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Source: Briefly News
