Call for Applications: Cooperative Development & Support Programme

The Small Enterprise Development and Finance Agency (SEDFA) is inviting cooperatives to apply to be part of the Cooperative Development and Support Programme (CDSP). The programme is aimed at supporting Cooperatives to grow and sustain their businesses by improving the quality of their products, production efficiencies and scaling up their operations.    

THE FUNDED INTERVENTIONS

• Machinery, equipment, raw material and or stock
• Commercial vehicles (these must be linked to the core functions of the operations)
• Information Technology (ICT must be linked to the core functions of the operations)
• Infrastructure set up (irrigation systems, Eskom Electricity connections). Please note that this programme does not support construction of brick-and-mortar structures.

REQUIREMENTS

1.    Cooperative’s Business Plan / Funding Proposal;

2.    Proof of registration with SARS (i.e. Tax clearance certificate if applicable);

3.    FICA documents for the cooperative and members/directors (e.g., Municipal accounts, letter from traditional authority);

4.    CIPC Registration Documents (e.g.CR-10 and Constitution);

5.    Lease Agreement or Permission to Occupy (P.T.O) or Title Deed;

6.    Three comparable quotations from your suppliers. The suppliers must be registered with CSD;

7.    CVs and certified ID Copies of Directors/founding members.

8.    Copy of minute’s resolutions to apply for Cooperative Support Programme (NB: nominate signatories for this application);

9.    Copy of the latest Bank Statement;

10.  One (1) year financial statements or Management Account (for existing Cooperatives) / Projected Financial Statement (for new Cooperatives). Members contributions into the account for New Cooperatives;

11.  Three (3) months Bank Statements (for existing Cooperatives) or Proof of bank account for new Cooperatives;

12.  Three (3) years cash flow projections;

13.  Relevant Industry Certification - where applicable.

ELIGIBLE COOPERATIVES (CATEGORIES OF COOPERATIVES)

PRIMARY COOPERATIVES

CATERGORY A

These are cooperatives that are starting up/operating in various sectors of the economy albeit at a small scale with a maximum turnover of R250 000. A bank balance of no less than R5 000 from commercial activity/member contribution, etc. Total funding is limited to R1 500 000 per applicant.
To be eligible for CDSP, a primary co-operative enterprise (i.e. Category A) must satisfy all the mandatory requirements as set out below:

• Be incorporated and registered in South Africa in terms of the Co-operatives Act, Act No.14 of 2005 (as amended);
• Be a primary co-operative with a majority black membership.
• Adhere to co-operative principles.
• To furnish proof of training from Seda/ DSBD or training institutions of minimum of two (2) members per cooperative in the areas of co-operative governance in fulfilment of the agreement entered with Seda prior to approval of the application.
• Sign a commitment to be trained by Seda on business management, business development support (BDS) and technical training.
   

CATERGORY B

These are Cooperatives that have been in operation for over 12 months with a minimum turnover of R 250 000. These cooperatives are seeking financial assistance to expand their operations. The maximum funding available for this category is R2 500 000. To be eligible for CDSP, a primary co-operative enterprise (i.e. Category B) must satisfy all the mandatory requirements as set out below:

• Be incorporated and registered in South Africa in terms of the Co-operatives Act, Act No.14 of 2005 (as amended);
• Be a primary co-operative with a majority black membership.
• Have business activities in any economic sector and operational for at least 1 year;
• Adhere to co-operative principles;
• To furnish proof of training from Seda/ DSBD or training institutions of minimum of two (2) members per cooperative in the areas of co-operative governance in fulfilment of the agreement entered with Seda prior to approval of the application.
• Sign a commitment to be trained by Seda on business management, business development support (BDS) and technical training.
   

CATERGORY C

SECONDARY/CLUSTER COOPERATIVES

These are Cooperative that have a turnover of more than R 500 000 (i.e., collectively from primary cooperatives and/or the secondary cooperative.)  Total funding is limited to R5 000 000 per applicant. To be eligible for CDSP, a cluster co-operative enterprise must satisfy all the mandatory requirements as set out below:

• Be a registered secondary co-operative in South Africa, registered in terms Co-operatives Act, Act No. 14 of 2005 (as amended), or;
• Be a secondary co-operative with a majority black membership.
• Have business activities in any economic sector.
• Adhere to co-operative principles;
• To furnish proof of training from SEDA / DSBD or training institutions of minimum of two (2) members per cooperative in the areas of co-operative governance in fulfilment of the agreement entered with Seda prior to approval of the application
• Sign a commitment to be trained by Seda on business management, business development support (BDS) and technical training.
• Primary Co-operatives registered under the Secondary Co-operative must satisfy all the mandatory requirements as set out above

NON ELIGIBLE APPLICATIONS
Applicants that are receiving grant funding from other government departments or agencies will not qualify for the similar expenditure and/or activities under this programme.

The following are excluded:

• Basic and applied research
• Costs incurred and/or assets acquired prior to approval of a complete proposal submitted to Seda
• Bonus payments
• Costs associated with tendering and tendering documentation
• Any illicit business activities
• Liquor and cigarettes (purchasing of stock)
• Gambling related activities
• Non-business-related infrastructure/or activities
• Vehicles for personal use
• Projects/activities that are initiated by an applicant before or during submission of a request for CDSP funding. Thus, Sedfa will not reimburse sunk costs.
  Any other cost that the Adjudication Committee, in its sole discretion, deems as non-qualifying.
• While nothing prohibits State employees from being members of co-operatives, such co-operatives will not be funded
• The Public Service Act prohibits State officials from engaging in remunerative work without prior approval from the Accounting Officers of State organs (the employer).
• Post approval, the co-operative should enter into a legal agreement with Seda agreeing to the terms and conditions for approval. The agreement should be signed no later than thirty (30) calendar days by all parties upon receipt of the approval letter.
• Failure to conclude the legal agreement within thirty (30) calendar days of receiving the approval letter will lead to the termination and/or cancellation of the approval.

DISCLAIMER
Applications will be on a first come first serve basis. SEDFA reserves the right to close the applications after exceeding the budgeted amount. Cooperatives who previously been funded from this programme will not be considered.  

ENQUIRIES

For further information and enquiries please contact Dineo Pule or 012 441 1000. Please do not send the applications to this email address but send to the email addresses outlined in the application form. Applications sent to this email will not be accepted.