Africa-Press – Eswatini. The ministry of commerce industry has revealed that as at February 23, the reconstruction fund had approved E79 million for 133 businesses from 305 applications received amounting to E447 million.
This is contained in the ministry’s responses on the annual performance report and budget estimates debate by the portfolio committee.
“The ministry can report that the fund is operational and applications are processed. As at February 23, 305 application were received amounting to E447 202 413. A total of 133 were approved amount to E79 246 205. E22 917 376 was disbursed” reads the response from the ministry.
The amount approved is an increase by E39 million from that the fund had disbursed in December where the ministry reported that since the launch of the Reconstruction Fund on Independence Day nearly E40 Million had been disbursed.
The ministry encouraged businesses that that were affected during the civil unrest to apply for the grants.
On September 6 2021, the country’s Independence Day commemoration, the king launched the Reconstruction Fund to compensate businesses and individuals who were affected by deadly protests in the country at the end of June.
“The nation is reminded that businesses damaged during the civil unrest can receive partial compensation grants of up to 60 per cent from the Reconstruction Fund. These grants are not repaid.
Businesses can claim for reconstruction or rehabilitation of premises; restoring or replacing of machinery and for loss of stock for small businesses (informal sector),” announced the government at the time.
Government further announced that application forms are available on the Government website and can also be physically collected from Eswatini Bank, National disaster management agency and Small Enterprises Development Company (SEDCO) offices.
RECONSTRUCTION FUND GUIDELINES
The objective of the Reconstruction Fund is to provide partial financial assistance to the businesses that have been affected by the unrests in the Kingdom of Eswatini by providing:
(a) Easily accessible grants to both the formal and informal sectors to cater for the reconstruction or rehabilitation of the business buildings or premises;
(b) Business grants for the purpose of restoring or replacement of machinery or equipment which is vital for business re-opening and recovery.
(c) Business grants for the sake of compensation of loss of stock for Micro and Small enterprises
This Fund will compensate formal and informal Businesses. The compensation will be guided by whether the business is Eswatini Registered and is 100 per e cent owned by Emaswati, or whether it’s Eswatini registered and is non Emaswati owned for the reconstruction or rehabilitation of business buildings or premises; restoring or replacing machinery or equipment
ii. Whether the business falls under Micro and Small business enterprises category as per the MSME National Policy categorisation for the loss of stock compensation
iii. Whether the informal business fall under the specific classes which will be compensated by a flat rate for the loss of stock. Such a list of classes will be provided in a schedule attached to these guidelines
The following are the prequalification requirements for all applications:
1. PREQUALIFICATION REQUIREMENTS:
1.1 FORMAL ENTERPRISES
1.1.1 100 per cent Emaswati owned businesses
The percentage compensation will be considered on case by case bases and the maximum compensation for 100 per cent Emaswati owned businesses will be up to 60 per cent.
Eswatini Registered Business, 100 per cent owned by Eswatini citizens
• Business must be registered or have an operating permit
• Trading License
• Form J and Form C
• Certificate of Incorporation Memorandum and articles of association
• Copies of IDs for the Directors,
• Constitutions for Associations
• Police Report confirming that the business was impacted by the unrests and also stating the extent of loss incurred
• Assessment from professional loss assessors
• Quotations, bills of quantities
1.1.2 Non Emaswati owned Businesses
The percentage compensation will be considered on case by case bases and the maximum compensation for non Emaswati owned businesses will be up to 40 per cent .
Eswatini Registered Business non Emaswati citizens owned
• Business must be registered or have an operating permit
• Trading License
• Form J and Form C
• Certificate of Incorporation Memorandum and articles of association
• Copies of IDs for the Directors,
• Constitutions for Associations
• Police Report confirming that the business was impacted by the unrests and also stating the extent of loss incurred
• Assessment from professional loss assessors
• Quotations, bills of quantities
1.2 PREQUALIFICATIONS FOR INFORMAL BUSINESSES
1.2.1 100 per cent Emaswati owned businesses
The compensation for informal Businesses for the Infrastructure, Machinery and Equipment will also be considered on case by case bases, the maximum compensation is up to 60%. Compensation on stock will be at a flat rate of up to E25, 000.00 (refer to schedule 1 on the categories).
Eswatini Registered Business, 100% owned by Eswatini citizens
• Must have been in business when the unrests started
• Permit or any form of approval authorising and confirming operations
• Police Report confirming that the business was impacted by the unrests and also stating the extent of loss incurred
• Quotations
1.2.2 Non Emaswati owned businesses
The compensation for informal Businesses for the Infrastructure, Machinery and Equipment will also be considered on case by case bases, the maximum compensation is up to 40 per cent. Compensation on stock will be at a flat rate of up to E25, 000.00 (refer to schedule 1 on the categories).
Eswatini Registered Business non Emaswati citizens owned
• Must have been in business when the unrests started
• Permit or any form of approval authorising and confirming operations
• Police Report confirming that the business was impacted by the unrests and also stating the extent of loss incurred
• Quotations
2. REQUESTS FOR RE-IMBURSEMENTS
The following documentation shall be required where requests for re-imbursement of reconstruction costs already incurred are made;
• Proof of Payment
• Quotations and Invoices
• Police Report confirming that the business was impacted by the unrests and also stating the extent of loss incurred
• Assessment from professional loss assessors
• Company registration documents (Form J and Form C)
• Certificate of Incorporation Memorandum and articles of association
• Trading Licence
• Copies of IDs for the Directors,
• Constitutions for Associations
• Police Report confirming that the business was impacted by the unrests and also stating the extent of loss incurred
• Assessment from professional loss assessors
• Quotations, bills of quantities
N.B: The reimbursements will be considered on a case by case basis, the compensation shall be partial, and businesses compensated by Insurance shall not benefit from this fund
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