The micro-project scheme is part of Germany's overall development co-operation that contributes to poverty alleviation and improvement of living standards, to cover the basic needs of the poorest social classes, especially in rural areas.
Guidelines for Microfinance application
1. Basic guidelines for applications:
Projects, which cannot be financed by the body responsible itself (e.g. Community Based, Non-Government and Faith Based Organizations registered in South Africa) can be supported. Projects, which are in the first place of advantage to Government agencies, business people or other individuals seeking support in order to establish or improve their services or private businesses do not qualify for the micro-project scheme Micro projects should be supervised by a local authority/responsible person and after completion be continued by the beneficiary.
A maximum amount of 25.000,00 Euro (depending on the current exchange between 350.000,00 ZAR and 400.000,00 ZAR) can be granted per project. However, labour, administrative costs and travel expenditure cannot be borne. The applicant organization has to contribute financially or by labour (self-help).
Semi-financing of projects, e.g. by several donors, is not permitted, and the project may not be financed from other German sources, such as the GIZ etc. Projects shall be accounted for at the latest six months after signing the agreement. A project can only be financed once. Gender issues will receive preference during the selection process.
2. Examples of projects:
Bore holes, garden projects, shelters for vulnerable children, construction/renovation of school classrooms, income-generating articles (sewing machines, tools/machines for a joinery or a locksmith's trade) etc.
3. Projects/items that cannot be funded include:
Consumables, vehicles, computers, printers, television sets, private business start-ups, labour and administrative costs, travel expenditure etc.
4. The following documents/information should be submitted with the application:
- an application letter, dated and signed by two persons responsible for the project, addressed to the German Missions, stating the project title and the amount of funds (requested names, contact details and signatures of the two persons responsible for the execution of the project/ signing of the contract; passport or other official documents need to be provided for identification purposes)
- detailed information of the applying institution/group, complete address, telephone and fax numbers, e-mail address, its legal form etc. (can be done on the basis of the application form); documentation for the registration of the organisation and its constitution must be provided
- detailed information of the project, exact location/address etc. Please state the current situation/problem, which efforts have been undertaken so far to realise the project, describe the development policy objective and what measures could be taken in order to improve the situation
- submission of two independent quotations for material and services
- list of total costs according to the most cost-effective quotation
- own contributions, in money or by manpower
- if building activities of any kind are concerned, proof of ownership for the land has to be submitted
- estimated project time frame (project needs to be finished within the same year)
- declaration of possible follow-up costs (to be covered by beneficiary)
- please send the application to email@example.com
5. Funding procedures:
Before the final approval of the application can be granted, a representative of the relevant German Missions have to visit the site of the project. In order that any funds can be released, a contract has to be signed by two representatives of the applying organisation and the Head of the German Mission.
6. After completion
After the project has been completed, a “Proof of Employment of Funds” with a written report have to be presented to the German Missions together with a list of the expenses and the original invoices. Unused funds or expenses without original invoices have to be refunded to the German Missions. A representative of the diplomatic mission will visit the project again to assess its success.
7. If you have not received a positive answer after approximately 4 months, unfortunately your application for funds could not be considered.