How the Technology Innovation Agency (TIA) funds innovation and seed-stage work — and why it backs R&D rather than buying a subscription.

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.

The Technology Innovation Agency (TIA) funds innovators and startups developing technology — by giving grants and seed capital to the enterprise doing the work. It does not pay end-customers to license third-party AI software.

What TIA funds

  • TIA is an entity of the Department of Science, Technology and Innovation, mandated to promote the development and exploitation of discoveries, inventions and innovations.
  • Its Seed Fund Programme provides early-stage funding to advance research outputs into prototypes and fundable, commercialisable ideas for innovators at higher education institutions, science councils and SMMEs.
  • TIA funds the innovator or startup developing the technology, by application — there is no TIA-accredited AI provider status.

What it means for an AI project

  • If your enterprise is developing a novel AI capability, TIA support may be relevant to that development work — not to buying a subscription.
  • A new venture can use a tool like osFoundry inside its development, but the funding backs the R&D, not the software purchase.

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.