Masisizane Fund For Women Empowerment

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 of the organisation and the drive of the team is embodied in fund name itself – Masisizane, meaning ‘let us help each other.’

The Masisizane Fund has a specific focus on black women, youth, and individuals with disabilities. Their 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.

The Masisizane Fund

The Masisizane Fund offers tailoured integrated and flexible financial and non-financial solutions. This includes financial education, capacity development and mentoring support. Industries that are eligiable for funding include agriculture, manufacturing, supply chain, franchising, and commercial enterprise.

The Fund is committed to contributing 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).

The Fund brings about self-sufficiency through the establishment of SMMEs, Franchises and Agribusinesses with a focus on growing clusters of co-operatives and extending the value chain.

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

-Turn-around strategies to reduce the risk of business failure

-Assistance for enterprises that qualify for expansion to grow in a sustainable manner.

SMME Training

-Education in Financial Reporting

-Training in Business, Technical and Financial Management

-Training in Good Governance.

Business Support

-Technical support through mentorship

-Financial management tools and advice

-Accounting services.

Masisizane’s loan book is segmented across three focus areas:

• Agribusiness: 54%;

• Franchises: 26% and

• Supply Chain Development: 20%.

The main focus however will be on agricultural related products offered by Masisizane which are the following:

Grain and Vegetable Crop

This product offers a revolving production facility (seasonal crops), the term runs from 36 to 60 months and is reviewed seasonally. Prime pricing of -5% to +5% is informed by rate recovery. The Risk Mitigation has seasonal or cyclical reviews to reduce exposure on every harvest, off take agreements and crop insurance.

Livestock (Breeding)

This offers long term instalment financing, a product life cycle of 30 to 60 months. Prime pricing is -5% to +5% and informed by rate of recovery. The Risk Mitigation is a loan paid within the productive life of the livestock as well as Lifestock Insurance.

Livestock (Sale stock)

This is short term secured with working Capital. The term is up to 36 months and is reviewed yearly. The prime pricing is -5% to+5% and informed by rate of recovery. Risk Mitigation is off take agreements and loan repaid within each cycle.

Implements and Equipment

This offers Instalment Financing, a term of 60 months of productive life of the equipment. Prime pricing is -5% to +5% and informed by rate of recovery. Risk Mitigation is Asset Insurance.

Application criteria

Start-up business

Monthly projected cashflow statement, income statement and balance sheet for the duration of the loan term;

Copies of any or all contracts and lease agreements;

Company registration documents;

Tax clearance certificate;

Business plan; and

Debtors and creditors analysis.

Existing business