7 Business Grants for African Entrepreneurs 2021
What are the best business grants for African entrepreneurs in 2021? Accessing adequate funding is crucial to the growth of any business. Typically in business, when the inflow of cash ceases, so does the business. One of the best ways to access funds as an African Entrepreneur is through grants. However, accessing business grants for African Entrepreneurs can be a challenge.
Usually, the common question that entrepreneurs ask is, “how do I find genuine business grants from African entrepreneurs?” Before we discuss the 7 business grants for entrepreneurs, let’s take a quick look at the concept of “business grants.”
What is a Business Grant?
A business grant is money awarded by a sponsor to entrepreneurs to help them grow and sustain their business. Unlike loans, you are not expected to refund business grants as they as often given without refund clauses. Business grants are typically awarded by trusts, governments, corporations, or foundations.
Type of Business Grants for African Entrepreneurs
Knowing the types of business grants for African entrepreneurs is very important. This knowledge helps you to know where to look to access funds for your business. Here is a list of the types of business grants:
· Competitive Funding: As the name implies, this type of funding demands that winners are selected from a pool by judges or boards. Typically, the winners are the entrepreneurs with the best applications.
· Continuation Funding: This form of business grant is focused on renewing the offer of an existing recipient. It is not meant for new applicants. The awardee continues to receive funds to grow their business over a stipulated period dictated by the sponsor.
· Non-Competitive Funding: This type of funding focuses more on eligible businesses rather than applications. Typically, anyone who meets the requirement is shortlisted and awarded this form of a grant.
· Pass-Through Funding: This form of business grant is often provided by the federal or state governments. Rarely will you find organizations offer this form of a business grant to entrepreneurs. This form of grant is awarded through formula allocations.
7 Business Grants that Works in 2021
The business grants listed below are awarded by organizations, companies, or individuals. They have been carefully researched and poses to be great opportunities for business entrepreneurs.
Seedstars Africa is one of the famous organizations that offer SME grants to businesses and entrepreneurs around the world. Their grants are accessible to entrepreneurs and businesses in over 53 countries in the world. The emphasis is on businesses in Africa, South America, and Asia.
This business grant is often awarded annually. Hence, you will need to apply within a specific timeframe. It is a competitive grant as winners are selected based on merits.
Shared Interest is one of the top business grants for African entrepreneurs. We’ve included it in this list because it is aimed at helping young entrepreneurs. The grant scheme was established in 1990.
The Shared Interest business grants are aimed at financing artisans, food producers, and farmers. It is a non-competitive business grant as awardees are selected based on eligibility. This business grant is only available to businesses in Kenya, Ghana, Peru, Costa Rica, and other Eastern African countries.
TEF (Tony Elumelu Foundation) Entrepreneurship Program
The TEF Entrepreneurship program is an initiative of the Tony Elemelu Foundation (TEF). This program aims to provide an opportunity for aspiring Entrepreneurs in Africa to benefit from about $100 million grant pool. Furthermore, the program aims to help create 1,000,000 jobs through these businesses. Hence, contributing an excess of $10 billion in annual revenue to Africa’s economy within 10 years.
TEF and its entrepreneurship program were founded by Tony Elumelu, a Nigerian billionaire philanthropist and investor. It is a multi-year program that provides mentoring, training, and funding for next-generation African entrepreneurs.
Tshikululu Social Investments
The Tshikululu Social Investment program provides a variety of business grants and social investments to businesses and entrepreneurs in Africa. This grant is distributed to SMEs by the South African Corporate Social Investment (CSI) management.
The Tshikululu Social Investment Company is also responsible for managing the funds of several organizations. These organizations include De Beers Fund, Rand Merchant Bank Fund, etc.
It’s almost impossible to talk about business grants for African entrepreneurs without talking about the Lundin Foundation. Established in 2005 by a Swedish family, the Lundin Foundation provides African entrepreneurs grants to grow their businesses.
With its headquarters situated in Canada, Lundin Foundation has operational branches in Ghana and Kenya. Their grant program provides financial aid to already established organizations and businesses around the world, including African nations.
Like the Lundin Foundation, Root Capital provides business grants to businesses and entrepreneurs in Africa. Established in 1991, this non-profit investment fund aims to impact families and businesses in rural areas. The company also looks to bridge social interaction with entrepreneurs. More than 450 businesses have been awarded grants worth millions of dollars since the Root Capital Funding Scheme began.
The Anzisha prize looks to offer young innovative entrepreneurs in Africa business grants. This prize also aims to provide mentoring platforms for young African entrepreneurs between the ages of 15 to 22 years. Entrepreneurs need to be within the ages listed above to qualify for this type of grant.
Many African entrepreneurs find it difficult business grants for African entrepreneurs. If you look in the right places, you will find genuine business grants for African entrepreneurs. We have provided some of the most reliable business grants for African entrepreneurs in this post. This list should give you a head start regarding where to find adequate funding for your business.