Accessing grants is very important for small businesses. So are you thinking of starting your own business in 2021? Do you need funds to start, sustain and scale your business?
No matter what phase you are in business, funds are crucial to achieving your business goals. Small business grants are an easy way to access the funds you need to boost your business. These small business grants are available for SMEs in Africa, and unlike loans, grants don’t need to be repaid, so no interest rates, collaterals or refinancing. All you need to do is qualify for these grants!
These small business grants are offered to individuals, firms, businesses and corporations to fund their businesses.
However, it is common for SMEs in Africa to face difficulties when accessing small business grants. What do business grant providers expect from African entrepreneurs? How can African entrepreneurs increase the chances of being successful with the process?
In this article, we would look at seven grants small businesses should check out in 2021. Read to the end to find out how you can increase your chances of success with the process! Let’s dive right in!
1. Tony Elumelu Entrepreneurship Programme (TEEP)
The Tony Elumelu Entrepreneurship Grant is provided by the Tony Elumelu Foundation (TEF). It stands to provide 10,000 aspiring African Entrepreneurs with a chance to profit from a $100 million grant, create 1,000,000 jobs and contribute $10 billion to Africa’s annual revenue, improving its economy over the next ten years.
The Tony Elumelu Entrepreneurship Programme (TEEP) is a Pan African initiative of the Tony Elumelu Foundation founded by a Nigerian billionaire investor, Tony Elumelu. The programme focuses on empowering African entrepreneurs through mentoring, training and funding.
Condition
- All applicants must be residents of one of the 54 African countries.
- Business must be in existence for at least three years.
To apply click here
2. GROFIN Fund
GROFIN fund is a pioneer financier specialising in financing and supporting small businesses across Africa and the Middle East. GROFIN fund focuses on small businesses that are majorly underserved by other financiers. It offers a unique solution patient risk-capital. Its fund size is $100 million to provide funds to Nigerian micro, small and medium enterprises.
Conditions
- Business operations must be in one of the following: Nigeria, Ghana, Zambia, Egypt, South Africa, Kenya, Tanzania, Rwanda, Uganda.
- Business must have a turnover of less than $15 million.
- Business should require financing between $100,000 and $1.5 million.
To apply click here
3. Bank Of Industry Youth Entrepreneurship Support Program
This is another small business grant available in Nigeria. The Bank of Industry launched a youth empowerment program aimed at young and talented entrepreneurs looking to venture into different Nigerian economies. It aims at addressing youth unemployment by funding their ideas. However, applicants will have to go through eight weeks of extensive entrepreneurship training online.
Conditions
- Applicants must have a minimum qualification of OND.
- Must have an innovative business idea in Nigeria
- Must be between the ages of 18-35 years
To apply, visit the YES-P registration portal online.
4. Seedstars Africa
Seedstars Africa is an organisation that offers SME grants in over 53 countries in the world in regions like Africa, Asia, the Middle East and South Africa. They aim to support entrepreneurs with a business in any African country, build online businesses in Africa, and fund web and mobile tech startups in Africa. To access this business grant, applicants will have to apply for the business grant competition for young business owners every year. This business grant gives ample opportunity to businesses and companies in need of capital.
5. Savannah Fund
Savannah Fund is also another promising fund option. It provides business grants to African entrepreneurs. Savannah Fund has generated more than $8 million, as it focuses on high growth technology startups in Africa. It has records of support to African entrepreneurs from Kenya, Nigeria, Ghana, South Africa and other countries. It seeks to bridge the business funding gap between venture capital investment and early startups in Africa.
6. National Youth Entrepreneurship Empowerment Summit (NYEES)
NYEES is an initiative targeted at empowering youths with the skills needed to develop the Nigerian infrastructure sector.
Participants will have to engage in seminars and training and be given the opportunity to present strategic business ideas to access the grant. The top ten participants receive 1 million naira grant each. The first edition took place in Abuja in 2019.
Conditions
- Participants must be focused on ICT, Fashion, Arts and Craft, Theatre, Films and entertainment, New media and Architecture.
- Must reside in Nigeria and business operations must be in Nigeria.
- Must be between the age of 18-35 years
To apply:
- Create a 60 seconds video showing your business idea
- Share on social media with the hashtags #NYEESCREATIVES #NYEES
- Also, tag and follow @NYEESummit
7. African Women’s Development Fund
African women’s development fund is a pan African female grant financier that offers organisations support for women rights and peace. These organisations tackle issues relating to women rights, justice and security.
Conditions
- Must be up to 3 years in business
- Must be registered and located in an Africa country
- Must be led by a woman and have a structured and effective board for easy executions.
How can African entrepreneurs increase their chances of success when applying for grants?
African entrepreneurs must understand what is expected of their businesses to have a positive result when they apply for grants. African entrepreneurs must consider the following:
- Entrepreneurs should have an existing business or an innovative and convincing business idea.
- Must submit their business plan or ideas
- Must submit the cost of starting the business
- Must have a business that will yield turn over in a short period as well as realistic ideas
- Must provide business registration with CAC
- Must provide financial records of the business
- Must provide a record of staff salaries if the business has been existing
So that’s it! Those are 7 small business grants you need to check out in 2021 and what you need to consider to become successful when you apply for grants!
Do you have questions or suggestions on SMEs in Africa? Kindly drop them in the comment section below!
I am very interested
I am asfand my business
while surfing the internet, i stumbled on this article which was really resourceful and very informative. Since many entrepreneurs are searching for funding opportunities, this will really assist them to take advantage of the programs and get some grants.
However, I wasn’t just impressed when i read all through. Especially when i read ways to access grant. There is more to accessing, an entrepreneur will have to position himself to able to get the grant he/she seek. This give an information for business owners to know what the many grant providers want from business owners before offering them business funds.