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localisation

Official source

Source domain: dsbd.gov.za

Collected on 5 August 2026

Always confirm details on the official source before acting.

What this means

This document is a DSBD (Department of Small Business Development) policy framework titled “Localisation as the Driver of Economic Recovery”. It sets out objectives and principles for implementing an SMME-focused localisation programme in South Africa, including import replacement, skills development, and a route-to-market for SMME-manufactured products. It describes programme pillars (including a Manufacturing Support Scheme with blended finance up to R15 million), qualifying criteria for funding, public procurement set-asides, and support for township and rural enterprises. It also lists product categories and counts for a “list of 1000 products and services” intended to support localisation.

What this document offers

Read out of this document by Govermate's AI, in its own words. Each one quotes the line it came from — confirm on the official source before acting.

enterprise development programmeOngoing

Township and Rural Enterprise Programme

Support for township and rural enterprises in sectors such as spaza shops, auto body and mechanics, bakeries, small-scale manufacturing, hairdressers, and tshisanyama vendors. This includes infrastructure, skills, and market access support to boost local economic activity.

Who it is for
township and rural-based SMMEs in specified informal and small-scale manufacturing sectors
How to act on it
Engage with the Department of Small Business Development or its partner agencies like sefa to apply for support under the Township and Rural Enterprise Programme.
Show the line this came from
Township and rural support via sefa Township and Rural Enterprise Programme (e.g., spaza shops, auto body/mechanics, bakeries, small scale manufacturing, hairdressers, tshisanyama vendors);
product categorisation and procurement reference listOngoing

List of 1000 Products and Services

A curated list of 1000 products and services across key sectors such as food and beverages, clothing, pharmaceuticals, beauty products, and construction equipment, designed to guide import replacement and local procurement efforts. The list includes category counts like 418 food and beverage items and 136 clothing items.

Who it is for
public and private sector procurers, SMMEs seeking market entry, and government departments aiming to source locally
How to act on it
Access the list through the Department of Small Business Development’s publications or related documentation to identify eligible products for local sourcing and production.
Show the line this came from
“List of 1000 products and services” with category counts (e.g., Food and Beverages 418; Clothing 136; Services 76);
market access programmeOngoing

SMME Listing Programme

A market linkage initiative where the Department collaborates with retailers and wholesalers to list products manufactured by SMMEs and cooperatives. This aims to increase domestic market access, promote locally produced goods, support job creation, and strengthen manufacturing output.

Who it is for
SMMEs and cooperatives producing goods eligible for inclusion in retail and wholesale supply chains
How to act on it
Register with the Department of Small Business Development to be considered for inclusion in the SMME Listing Programme, ensuring products meet localisation criteria and quality standards.
Show the line this came from
The Department is working with numerous Retailers and Wholesalers across the country to list products manufactured by SMMEs and Co-operatives.
financial grant and loan programmeClosing date not stated

Manufacturing Support Scheme

A funding programme offering financial and non-financial support to small enterprises in the manufacturing sector. It provides blended financing of up to R15 million per enterprise, with up to 50% as a grant (soft loan) and the remainder as a repayable loan at prime lending rate. The scheme supports infrastructure, route-to-market access, raw material costs, technical skills, product certification, testing, and quality assurance.

Who it is for
registered small enterprises that are 100% South African citizen-owned and meet ownership/management targets for black, women, youth, and persons with disability
How to act on it
Apply through the Department of Small Business Development for eligibility under the Manufacturing Support Scheme, ensuring compliance with qualifying criteria including legal registration, ownership requirements, and sector alignment.
Closes
Closing date not stated in the source
Show the line this came from
Financial assistance of up to R15 Million (loans – blended funding).

Facts

Places

eThekwini, KwaZulu-Natal, City of Tshwane, Gauteng

Amounts

R 15 000 000

Key Takeaways

  • Document title: Localisation as the Driver of Economic Recovery (DSBD)
  • DSBD responsibility (2019–2024 MTSF) to develop and propose a localisation policy
  • Framework incorporated into the 2020 Economic Recovery Plan announced by the State President
  • Objectives include building manufacturing capacity of SMMEs and export market preparation
  • Programme pillar: Manufacturing Support Scheme with financial/non-financial support
  • Funding cap: up to R15 million per small enterprise (loans – blended funding)
  • Funding term: determined by business cash flows up to 84 months; max moratorium 8 months
  • Blended finance: up to 50% could be a grant (soft loans), balance a loan; loan repayable at prime lending rate
  • Qualifying criteria include: registered legal entity (Companies Act 1973), 100% South African citizen ownership, and ownership/management targets for black, women, youth, and persons with disability
  • Public procurement set-asides: designate specific goods/services for procurement solely from SMMEs and include provincial designation
  • Township and rural support via sefa Township and Rural Enterprise Programme (e.g., spaza shops, auto body/mechanics, bakeries, small scale manufacturing, hairdressers, tshisanyama vendors)
  • “List of 1000 products and services” with category counts (e.g., Food and Beverages 418; Clothing 136; Services 76)
  • Department of Small Business Development (DSBD)
  • South African Cabinet
  • State President
  • Small Enterprise Development Agency (sefa)
  • Small Enterprise Finance Agency (sefa/SEFA referenced as Small Enterprise Finance Agency)
  • Small Enterprise Finance Agency (SEFA)
  • Companies Act, 1973
  • South African Revenue Service (SARS)
  • National SMME Database (smmesa.gov.za)
  • SABS
  • CHIETA
  • SETAs
  • SANAS
  • NRCS
  • eThekwini Metro
  • City of Tshwane