Objectives

The primary objective of this tender is to establish a 3-year Panel of Financiers capable of providing structured financing, advisory services, and risk mitigation support to MSMEs participating in the Department of Public Works & Infrastructure's programmes. The aim is to facilitate immediate, accessible, de-risked, and developmentally aligned funding that supports transformation, localization, and contractor development objectives within MSME sectors.

Scope

The scope of work for successful panel members includes:

• Providing direct finance such as loans, bridging finance, asset finance, and contract-backed finance.
• Offering financial advisory and investment readiness services.
• Providing financial management training to MSMEs.
• Supporting MSMEs with credit readiness, financial record keeping, and management.
• Implementing structured risk mitigation instruments (e.g., cessions, guarantees).
• Tracking MSME performance and submitting quarterly reports to the Department.
• Facilitating payments related to project milestones, including workers’ stipends where applicable.

Technical Requirements

Applicants must demonstrate compliance with the following technical criteria:

• Registration with the National Credit Regulator (NCR) and possession of a valid financial service license.
• Submission of a bank rating letter (minimum rating B).
• Provision of a comprehensive proposal, including an implementation plan and risk management plan.
• Attachment of the latest signed Annual Financial Statement Declaration for the preceding financial year, including income statement and balance sheet.
• Proof of relevant experience and successful execution of similar work, supported by testimonials.
• Demonstration of institutional capacity and capital adequacy, with recent financial statements.
• Clear articulation of MSME funding models, financing products, and risk management approaches.

Skills Requirements

Applicants should possess:

• Financial expertise in structuring various financing instruments and risk mitigation tools.
• Experience in providing financial advisory, capacity building, and management training services.
• Ability to monitor and report on MSME performance effectively.
• Proven track record of working with MSMEs and financial institutions in similar development programmes.
• Strong understanding of the MSME sector challenges and the financial landscape within South Africa.
• Capability to implement structured risk mitigation instruments and manage credit readiness assessments.