Where an early-stage South African startup can look for innovation funding, and how an AI project fits.

dgm is an independent integration partner for osFoundry — it is not affiliated with osFoundry’s maker (OS LLC) and has not yet completed an integration project for any client.

Where can an early-stage South African startup look for innovation funding? Mostly to bodies that fund the startup’s own development work — such as TIA and SEDFA — and to the section 11D R&D tax incentive, not to a fund that buys software.

Where to look

  • The Technology Innovation Agency (TIA), whose Seed Fund Programme provides early-stage funding to advance research into prototypes and commercialisable ideas.
  • SEDFA, the merged Small Enterprise Development and Finance Agency, for SMME finance and development support.
  • The section 11D R&D tax incentive for a startup conducting genuine R&D, subject to mandatory DSI pre-approval.
  • Private finance or own capital for the parts no incentive covers.

How an AI project fits

  • These sources fund the startup developing the technology — not the purchase of an off-the-shelf AI subscription.
  • A startup can use a tool like osFoundry inside its own development, but the funding backs the work, not the software.

The honest framing

Public support in South Africa funds the company’s own research, development or innovation, or gives it a tax break — it does not buy an off-the-shelf AI subscription. The section 11D R&D tax incentive offers a 150% deduction on approved R&D, requires pre-approval by the Department of Science and Innovation and has been extended to 31 December 2033; the Technology Innovation Agency (TIA) and the Small Enterprise Development and Finance Agency (SEDFA, formed in 2024 from SEDA and SEFA) fund innovation and small enterprises; and DTIC sector programmes such as the Global Business Services (GBS) incentive and the automotive APDP support specific industries. Separately, Broad-Based Black Economic Empowerment (B-BBEE) is a procurement and empowerment scorecard, not a grant: a supplier’s B-BBEE level affects how many procurement points its customers earn, so it shapes who buyers prefer rather than paying for software. dgm is not a registered or accredited provider of any of these programmes; it can advise a beneficiary or act as a subcontractor.

Where dgm comes in

dgm is an independent integration partner that helps organisations in South Africa adopt the osFoundry platform — from identifying the first practical use case, to setting it up, to connecting AI to the systems you already run. dgm can help identify which parts of your activity might qualify — without committing that any incentive will be granted. dgm operates separately from osFoundry’s maker (OS LLC) and has not yet completed an integration project for any client, so everything above is a proposed service rather than a delivered outcome. If you would like to weigh up a practical first step, dgm would be glad to think it through with you. Arrange an introductory call with dgm.

This article is general information and is not legal, financial or tax advice. Incentives, tax rates and regulations change; always confirm the current position with an official source (SARS, the Department of Science and Innovation, the dtic, the Information Regulator, the FSCA or the relevant authority) or a qualified adviser before you act.