The Seda Technology Programme

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The Seda Technology Programme (Stp) is an initiative by the Department of Trade and Industry, in collaboration with the Small Enterprise Development Agency (Seda), that offers support to small enterprises adopt new technologies.
What are the main aims and objectives?

The Seda Technology Programme has several core aims and objectives centred around supporting small enterprises. One of its key goals is to enhance technological innovation within these businesses. It strives to boost accessibility to and the utility of technologies and technical support for small enterprises. Additionally, the program is focused on facilitating the acquisition, development, and transfer of technology to small enterprises, with a particular emphasis on those operating in the second economy.

By doing so, the program aims to improve the performance and productivity of small enterprises, as well as their profitability and growth. Another crucial objective is to bolster the competitiveness of small businesses and to reduce the failure rates of these enterprises. Through these efforts, the Seda Technology Programme seeks to contribute to the creation of sustainable, globally competitive small, medium and micro enterprises (SMMEs) that support the accelerated growth of South Africa's economy.

How does the program work?

The Seda Technology Programme's efforts are bolstered by the Technology Transfer Fund, designed to aid clients across the expansive network of Seda branches and incubators throughout the country. This fund facilitates the procurement of pioneering technologies and intellectual property that enhance production capabilities. It serves to aid small, medium, and micro enterprises (SMMEs) within the manufacturing industry that have a turnover of less than R5 million. The objective is to generate a return on investment for the fund by increasing both revenue and job opportunities over the span of a three-year agreement.

Funding is limited and the annual funding window is always highly over-subscribed. As a result, a thorough and competitive assessment process is in place to evaluate the prospective impact of applicants. In exchange, the small, medium, and micro-enterprises (SMMEs) that are part of the investment portfolio frequently experience growth exceeding 100% over the term of the contract.

More broadly the following types of support are offered by the Seda Technology Programme:

  • Funding: The program provides non-repayable grants up to a maximum of R600,000 per project for qualifying entities.
  • Technology Transfer: Assistance with acquiring necessary technology and technical support for effective technology transactions.
  • Business Incubation: Access to Technology Business Incubators across various provinces.
  • Access to Technology: Facilitating small enterprises' access to technology information and business-to-business linkages.
  • Quality Support Services: Includes the Quality and Standards Unit with sub-units like the Enterprise Development Sub-Unit and the Conformity Assessment Sub-Unit to help with quality control and assessment processes.

Programme Description:

  • Grants for approved tools, machinery, and equipment are provided at 50% of the cost up to R800,000, and for approved training and business development services at 80% up to R200,000.
  • Support is available for startups and organizations that require rehabilitation 1.
  • It includes a Technology Transfer Unit and a Quality and Standards Unit to assist small enterprises.
  • Technology Business Incubators are available across the provinces to support small enterprises.

Target Market:

  • Startups and organizations in need of rehabilitation
  • Small Enterprises in the 2nd Economy
  • Women-owned businesses and those owned by people with disabilities
  • Youth-owned businesses
What is the overall cost?

The annual budget for 2023/24 was R113 million (approx. $5.9 million)

How was it implemented?

The Seda Technology Programme was established on 1 April 2006 by the Department of Industry Trade as a special ring-fenced program housed within Seda at the Department of Trade, Industry and Competition Campus.

The STP was established as part of the government’s national strategy of consolidating and rationalising small enterprise support interventions across the different government departments and government agencies, with the overall objective of improving the delivery of small business support services to entrepreneurs and small enterprises. 

The STP has three main division each focused on a different aspect of technology transfer. They are:

  1. Technology Business Incubation
  2. Quality Systems and Conformity Standards
  3. Technology Transfer and Innovation Support
What impact has been measured?

Seda use a number of individual case studies to highlight the programs success including the following:

 i.            Number1 Muesli is a brand that was created by Lize Fouche. She received assistance with marketing, packaging development, financial software and access to funding as well as assistance to set up her factory at the Coega industrial development zone. The profits realised by the business have grown by 42% since Seda became involved.

 ii.            Ashley Uys, founder of Medical Diagnostech, a manufacturer of medical diagnostic test kits, was assisted to get the world health organisation’s ISO 13485:2003 certification for his malaria test kit by Seda. The company experienced growth in sales and has also increased the number of employees.

iii.            Lulu’s Supplies and Dictributors CC operates in the clothing and textile sector and is owned by Lulu Letswele and her two children. With the help of Seda, they received financial management skills training and a quality management system for ISO 9001:2008 certification was implemented.  Additional equipment was acquired and the company has experienced a 42% growth in net profit margin since 2012.

However, there is no informational available on the overall impact of the program on wider economic metrics. 

CURATED BY

Tom Hancock

Research Associate
Global Entrepreneurship Network
United Kingdom