A total of 51 companies and institutional investors have collectively provided R1.5bn ($112m) of funding for a South Africa-based fund that will invest in small and medium-sized (SME) businesses.
SME Fund will provide funding and mentorship to high-potential entrepreneurs and SMEs. The public sector has agreed to match whatever capital is raised privately.
The fund’s limited partners include telecommunications companies Telkom, Vodacom and MTN, media and e-commerce group Naspers, platinum producer Anglo American Platinum, hospitality chain City Lodge, energy company Sasol and restaurant chain Nandos.
The firms include 70% of the top 40 companies on the Johannesburg Stock Exchange. SME Fund will be chaired by Adrian Gore, founder and CEO of financial services group Discovery.
In addition, the fund’s board will include Brian Joffe, founder of food producer Bidvest; Jabu Mabuza, chairman of Telkom and trade body Business Unity South Africa; Christo Wiese, chairman of retail group Steinhoff/Wiese; and Dolly Mokgatle, co-founder of women’s investment firm Peotona Capital.
Jabu Mabuza said: “This is positive for South Africa. It shows that despite the political debate, business continues to focus on stimulating economic growth. SMEs will be the key driver of job creation, and this fund is an important initiative in this space.”