FUND
BROCHURE
ABOUT US
Masisizane Fund is a non-profit organisation that aims to provide
Enterprise Development support specifically to small and medium
enterprises in South Africa, with a focus on majority black-owned
businesses in rural and peri-urban areas. Our mission is to reduce
poverty, inequality, and unemployment by facilitating access to
capital, markets, and Business Support for capacity building. We
prioritize businesses owned by women, youth, and people with
disabilities, and work towards their growth and sustainability.
We pride ourselves in implementing value-adding support for SMEs
through collaborative and bespoke approaches to advisory, funding and
growth solutions for entrepreneurs.
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The Masisizane Fund is an initiative of Old Mutual established in
2007 following the closure of the Unclaimed Share Schemes Trust
and in consultation with the National Treasury of South Africa.
OUR MANDATE
Masisizane’s business funding is targeted at, but not limited to:
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Black owned Youth owned Women owned
OUR GOALS
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Masisizane actively measures and manages impact by aligning
with the United Nation’s Sustainable Development Goals SDG
framework. We are committed to contributing to meeting the
following UN’s Sustainable Development Goals (SDGs).
People living Rural, urban and
with disability Township based
owned
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QUALIFYING WHO DOESN’T
CRITERIA QUALIFY?
Masisizane Fund generally applies the following funding criteria: We dont extend funding to the following:
The enterprise must be owned by a majority of 51% black South Africans Enterprises that partake in illegal, environmentally harmful and/or
or naturalised South Africans. unregulated activities.
The main shareholders or business owner(s) must be operationally Businesses or business owners that are under debt review or insolvents
involved in the day-to-day management of the enterprise. who are unrehabilitated after other ventures.
The enterprise must have a formalised registered business structure Businesses that have filed for bankruptcy or are under liquidation.
(co-operative, company or close corporation) and comply with all relevant
Businesses that engage in exploitative and discriminatory labour
statutory requirements governing that type of entity, company or close
practices, or cruelty to animals.
corporation).
Business that need to refinance existing debts unless this serves to
The enterprise must have clearly defined marketable products or services.
strengthen both the enterprise and the Masisizane Fund’s position.
There must be a demonstrable commitment by the business owner(s),
including financial and/or non-financial contributions.
The enterprise must be a viable enterprise or have the potential to be
viable and reflect a clear ability to meet its ongoing commitments,
including loan repayments.
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WHAT WE
OFFER
Masisizane Fund concentrates on the following key areas to support
SMEs and promote their long-term viability:
DEVELOPMENT AND COMMERCIAL FUNDING
Offering financial and non-financial assistance, such as debt, mezzanine, and
equity funding of up to R20 million respectively, to facilitate development and
commercial transactions.
SOCIO-ECONOMIC IMPACT
Fostering job creation, increasing the participation of Black-owned entities in the
economy, and improving communities in which approved SMEs operate.
ENTERPRISE SUPPLIER DEVELOPMENT (ESD) PROGRAMMES
Managing ESD initiatives for corporations and empowering suppliers in the value
chains to promote transformation.
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FUNDING
SUPPORT
Funding applications are evaluated on a case-by-case basis
to determine whether the project qualifies for development or
commercial funding. The minimum criteria for an application to be
classified as either one of the two funding options are outlined below:
DEVELOPMENTAL SME CRITERIA
The minimum criteria for development funding includes:
• Business operation of less than 3 years.
• At least one shareholder 100% operationally involved in the business.
• Requires end-to-end business support.
• Funding limit of R10 million.
COMMERCIAL FUNDING CRITERIA
• Business operations of more than 3 years.
• The owner/s or appointed manager with capabilities must be actively
FUNDING SUPPORT involved in the business on a full-time basis.
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PRICING AND FUNDING
INSTRUMENTS
PRICING FUNDING
Our pricing considers several factors and Our funding support is executed through
considers the risk profile of the enterprise various instruments and has varying terms
and the impact the project will have on of payment depending on the sector in
the community. which the enterprise operates.
Pricing is linked to the prime rate, and is Contract Financing Working Capital Quasi-Equity
influenced by the factors below: Linked to contract term Up to 36 months Clear-exit strategy
Owner contribution and collateral
Experience of business owner(s) and management
Nature of business
Development impact
Production Asset Finance
FUNDING THRESHOLD R251 000 – R20 million Facility 60 months or
36 - 60 months productive life
of asset
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BUSINESS
DEVELOPMENT SUPPORT
Masisizane offers customised business support and capacity-
building services designed to meet the unique needs of our
clients throughout different phases of the business journey. Our
comprehensive support enhances post-investment endeavours and
drives successful turnaround initiatives. These efforts are dedicated
to bolstering the capabilities of dynamic entrepreneurs, fostering
their sustainable growth, and ensuring their long-term success.
OUR CAPACITY BUILDING SERVICES COVER
THE FOLLOWING SEGMENTS
• Business planning and modelling
• Operational efficiency and optimisation
• Accounting and finance
• Security and business valuations
• Mentoring and coaching
• Turnaround management/business recovery
• Collections and recovery management
• Business development
• Marketing management
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Scan the QR
code to visit
our website
www.masisizane.co.za
masisizaneenquiries@oldmutual.com
@Masisizane Fund
ombds 02.2024 C10014
