Where a blended finance approach may be possible
For some qualifying South African projects, a funding package may combine a repayable loan with a grant or other concessional development support. The business may also need to contribute its own funds. This is a possible blended finance approach: different funding components work together to support an eligible project, rather than relying entirely on one commercial loan.
For example, a qualifying manufacturing expansion might explore a development or commercial loan for part of the investment, an eligible cost-sharing incentive towards approved expenditure, and an owner contribution. This is an illustration of a structure to investigate, not an available offer or confirmation that a particular programme permits that combination.
Where the programme rules allow it, a grant component may reduce the amount that must be borrowed. However, grant payments may follow approved expenditure or verified milestones, so the business may still need bridging cash. Loan repayments, interest, security, grant conditions and the timing of each component must be considered together.
Not every business or project qualifies. Each provider must accept the proposed structure, and the applicable rules on other funding, eligible costs and duplicate claims must be checked. Combining two ordinary commercial facilities is a multi-facility funding structure; it does not automatically make the arrangement a government-supported blended finance programme.