What does the Masisizane Fund do?The Masisizane Fund is a non-profit funding entity that provides Enterprise Development to small, medium and micro enterprises (SMME's), through two core channels Developing Financing and Business Support.
The spirit of our organisation and the drive of our team is embodied in our name itself - Masisizane, meaning 'let us help each other.'
The Masisizane Fund is an Old Mutual initiative that was established in 2007 in consultation with the National Treasury of South Africa following the closure of the Unclaimed Share Schemes Trust.
The video clearly demonstrates some of Masisizane Fund’s clients and the remarkable work we achieved with our partners and stakeholders. We truly believe in partnerships for a brighter tomorrow.
Watch our story.
The Masisizane Fund Board comprises representatives from Old Mutual (South Africa), empowerment partners (WIPHOLD and Brimstone) and external representatives, who oversee Masisizane’s initiatives. The composition of the Board is regularly reviewed to ensure a measured balance of the requisite skills. The Board’s representatives are both diverse and highly committed, actively visiting beneficiaries of the fund in their business environments to observe Masisizane’s contribution to their development.
The Masisizane Fund Executive Committee (Exco) comprises of individuals from varying academic and professional backgrounds, who oversee Masisizane Fund’s daily operations and initiatives. Exco representatives are both diverse and highly committed, actively involved in the deal process of the fund, engaged in clients business environments to observe Masisizane’ s contribution to the development of clients’ businesses.
We strive to enable positive change through sustainable enterprise development in our communities.
We are committed to contributing measurably to job creation that, in turn, contributes to poverty eradication in South Africa. This is achieved through enterprise financing, encouraging entrepreneurship and capacity development, thereby contributing to the sustainability of Micro, Small and Medium Enterprises (SMMEs).
At Masisizane we are driven to:
- Improve the livelihood of and bring self-sufficiency to those who struggle to access finance
- Bring about self-sufficiency through the establishment of SMMEs, Franchises and Agribusiness with a focus on growing clusters of co-operatives and extending the value chain.
The Masisizane Fund has a specific focus on black-owned businesses, women, youth and people with disabilities. Our work is concentrated in under-developed areas of South Africa, including its rural areas, small towns and townships, where businesses are typically seen as high risk and struggle to secure finance through traditional channels. It is our belief that these same enterprises can ignite whole local economies in creating jobs and kick-starting smaller, associated businesses – and that is why we are passionate in our support of them.
Where some institutions may provide funding without any further support, we are committed to driving broader change through our work. This means offering development support and close collaboration with the entrepreneurs we invest in, to ensure their sustainability and growth. Our non-financial support includes:
- Pre-investment Business Accelerator: Strengthening the business plan and certain aspects of the business to enable the entrepreneur to access funding.
- Post-Investment Incubation: Providing turn-around strategies to reduce the risk of business failure and assistance for enterprises that qualify for expansion to grow in a sustainable manner.
- SMME Training which includes education in Financial Reporting, training in Business, Technical, Financial Management and Good Governance.
- Business Support provided namely technical support through mentorship, financial management tools and advice as well as accounting services.
Since our inception in 2007, the Masisizane Fund has:
- Approved over R522 million in funding
- Facilitated over 7 950 jobs. Among these employees are people who have never worked, or who have been unemployed for years and desperately searching for work
- Assisted over 300 enterprises, with 60% located in rural areas
- Grown its endowment fund from R650 million to R807 million (as at May 2017).
Masisizane’s loan book is currently split across its three focus areas as follows:
- Agribusiness: 54%
- Franchises: 26%
- Supply Chain Development: 20%
Masisizane’s flagship initiative, Matatiele Grainco (Pty) Ltd, has changed the lives of 26 black small-scale commercial farmers. Located on the border of the Eastern Cape and KwaZulu-Natal is a cluster of eight cooperatives: five in Umzimkhulu, two in Matatiele and one in Nkwazini. The 26 shareholders of Matatiele Grainco jointly own or have access to over 20 000 hectares of arable land in Matatiele and Cedarville.
In 2015, Masisizane capitalized Matatiele Grainco for the amount of R5.6 million, enabling the co-op to acquire machinery for mechanized services. One year later, the Department of Rural Development and Land Reform partnered with the Masisizane Fund and Matatiele Grainco by providing grant funding to assist in scaling up the investment.
These funds were used to purchase additional tractors, trucks and farm implements. By clustering these small-scale farmers together, Masisizane has enabled them to benefit from economies of scale, thereby stimulating value chain financing, agribusiness, and leveraged partnerships.
At Masisizane we measure our success against four key pillars:
- Developing entrepreneurs
- Reducing inequality
- Creating jobs
- Driving growth.
We recently commissioned Fetola to survey Masisizane clients who had received funding between 2009 and 2016 to gauge the true impact of our organization on their lives and businesses. On average, the respondents had received loans of R1,6 million.
Take a look at some of the frequently asked questions and their answers below.
+27 11 779 9400
4th Floor Sandown Mews
88 Stella Street