South Africa has launched a R1.4bn ($95m) venture fund to invest in startups and small and medium-sized enterprises (SMEs) in the country, BusinessDay has reported.
SA SME Fund has sourced limited partner commitments from African businesses and will invest in startups that record annual turnover between R20m and R500m.
The vehicle has launched with a mandate to back 10 “significant” black-owned businesses, 200 SMEs and five black entrepreneurs in the next five years, in the process helping to grow the economy and address unemployment in the country.
President Cyril Ramaphosa said in a statement: “What we are seeking to do is address the challenge our country faces of unemployment, which is huge. There are certain initiatives we can embark on to address the unemployment challenge.”
Ramaphosa also announced the launch of Business Leadership South Africa (BLSA) Connect, an online trading platform that enables SMEs to gain access to supply chain opportunities, according to the Register, which cited government spokeswoman Khusela Diko.