The Technology Innovation Agency and the SAB Foundation form a partnership to further support innovation
(8 June 2022, Johannesburg) The Technology Innovation Agency (TIA), an entity of the Department of Science and Innovation, and the SAB Foundation have announced a partnership to promote social entrepreneurship development in South Africa.
The SAB Foundation describes social entrepreneurship as business solutions to social problems. The partnership will see TIA and SAB Foundation co-investing in a Social Innovation Fund, the Social Innovation and Disability Empowerment Awards, and a University Seed Fund. TIA will invest R 5 million along with R23.6 million from the SAB Foundation.
TIA invests approximately R400 million annually to support technology innovation through various funds and programmes. The co-investment with the SAB Foundation is geared at accelerating impact and leveraging private sector support in the innovation value chain.
The funds will use a combination of grants and loans, with both technical and business development support to scale these entities and create jobs. These are unique ventures that are trying to address some of South Africa’s biggest social challenges, so the knock-on effect of helping them grow is exponential.
The intention is that following the support received from SAB Foundation and TIA, businesses will be ready to take on investment capital from venture capitalists and other impact investors.
The two organisations will contribute funds towards the SAB Foundation’s Social Innovation and Disability Empowerment Awards 2022, as a fund leveraging strategy. This will create a sustainable pipeline for projects and innovations eligible for the foundation’s Social Innovation Fund, which supports innovators with technical funding, and business development support.
Since 2010, the SAB Foundation has provided support and funding for entrepreneurs and micro-enterprise owners who want to grow their businesses and achieve new levels of success. This serves as a stepping-stone for South African innovators and the social empowerment of impoverished communities.
TIA is mandated to promote the development and exploitation of discoveries, inventions, and innovations to improve the quality of life for all South Africans. TIA supports innovations by bridging the innovation chasm between research and commercialisation. TIA is an active funder, connector, and facilitator in bridging the innovation chasm. Partnerships and collaborations are vital to TIA effectively fulfilling this role.
“We are very excited about this strategic partnership,” says Bridgit Evans, Director of the SAB Foundation. “Social Innovation holds so much promise for the country and we are delighted that TIA believes in what we are trying to achieve”
“TIA’s collaboration with the SAB Foundation positions the two organisations as partners in cultivating a culture of inclusive innovation with technology start-ups at the forefront of growing the economy and thus improving the quality of life for South Africans,” says Ms Tandokazi Nquma-Moyo, Acting General Manager: Strategic Partnerships and Business Development for TIA.
“Partnering with the private sector and industry that have enterprise development instruments will accelerate the commercialisation of local innovations,” she continues. “Through the TIA SEED Fund, TIA will be able to leverage funding by collaborating with private sector partners in developing and commercialising publicly-funded IP from universities.”
The TIA and SAB Foundation’s University Seed Fund co-investment will include capacity development initiatives, joint funding, market access opportunities, and commercialisation of technologies. The fund, which will offer access to seed capital for innovative ideas, will be targeted at previously disadvantaged Higher Education Institutions. Identified Universities include the Universities of Limpopo, Fort Hare, and Zululand.
“We are looking forward to working with TIA to further support our entrepreneurs on their journey to success,” concludes Evans. “Through this partnership, we hope to give social entrepreneurship in our country the boost required to help tackle the challenges that we currently all face.”
