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Infrastructure

Building infrastructure can be capital-intensive, but crucial for industrial growth.

The government, through the Critical Infrastructure Programme (CIP), offers grants to co-fund the development or upgrading of infrastructure that directly enables business investment. For example, if a new factory needs a road, power supply, or water treatment facility, CIP might cover a portion of those construction costs to make the project feasible. Additionally, companies investing in designated Special Economic Zones may enjoy tax incentives and infrastructure support under the SEZ Programme – for instance, preferential corporate tax rates or building allowance in an SEZ. IDC also finances infrastructure-related ventures (like privately developed industrial parks, renewable energy infrastructure, etc.), as these often fall within its mandate to spur development.

Available Funds for the Infrastructure sector

The NEF and Bakubung Platinum Mine (BPM) Enterprise and Supplier Development (ESD) Fund is a R3 million funding partnership supporting black-owned businesses in the Ledig, Mahobieskraal and Phatsima villages of North West province to enter and grow within Bakubung Platinum Mine’s supply chain.

The Capital Projects Feasibility Programme (CPFP) is a cost-sharing grant that contributes to the cost of feasibility studies likely to lead to projects that will increase local exports and stimulate the market for South African capital goods and services. The grant covers up to 50% of total feasibility study costs for projects outside Africa (55% for projects in Africa), capped at R8 million.

The Critical Infrastructure Programme (CIP) is a cost-sharing incentive administered by the dtic that supports infrastructure deemed critical to investment projects, lowering the cost of doing business and stimulating investment growth in line with South Africa’s National Industrial Policy Framework (NIPF) and Industrial Policy Action Plan (IPAP).

The Special Economic Zone (SEZ) Programme establishes geographically designated areas across South Africa where businesses benefit from special incentives, infrastructure, and regulatory arrangements to attract investment, promote industrial development, and create employment.

 

The Strategic Projects Fund (SPF) is a NEF venture capital fund established to increase black participation in early-stage, strategic industrial projects across key government-identified sectors, providing seed capital for feasibility studies and project development through six stages to financial closure and beyond.

The Support Programme for Industrial Innovation (SPII) provides non-repayable grants to South African businesses and individuals to financially support the development of technologically innovative products and/or processes. The programme is focused specifically on the development phase — from the conclusion of basic research through to the production of a pre-production prototype.

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