Masisizane Fund For Women Empowerment

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The Masisizane Fund has a specific focus on black women, youth, and people 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 Fund drives Enterprise Development to SMMEs through a combination of loan financing and non-financial business support.

The Masisizane Fund

The Masisizane Fund offers tailored integrated and flexible financial and non-financial solutions including financial education, capacity development and mentoring support.  They take time to fully understand each enterprise needs, challenges and characteristics.

It is a non-profit funding entity. The 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.

Today, the Masisizane Fund provides Enterprise Development to small, medium and micro enterprises (SMME’s), via two core channels:
1. Developing Financing
2. Business Support

They 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).

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:

  1. Pre-Investment Business Accelerator
    • Strengthening the business plan and certain aspects of the business to enable the entrepreneur to access funding.
  2. 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.
  3. SMME Training
    • Education in Financial Reporting
    • Training in Business, Technical and Financial Management
    • Training in Good Governance.
  4. Business Support
    • Technical support through mentorship
    • Financial management tools and advice
    • Accounting services.

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Masisizane’s mission is to be a leading development finance institution in South Africa that contributes visibly to economic transformation by enabling sustainable development of a large number of SMMEs, facilitating job creation, increased financial and business skills that in turn translates into significant social benefits to communities in the form of wealth creation, sustainable home-building, access to education, and re-investment into the economy.

Masisizane’s loan book is currently split across its three focus areas as follows:

  • Agribusiness: 54%
  • Franchises: 26%
  • Supply Chain Development: 20%

There are several industries which are being funded by the Masisizane fund, namely:

  1. Agriculture
  2. Manufacturing
  3. Supply Chain
  4. Franchising
  5. Commercial Enterprise

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 annually. 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

  1. Monthly  projected cashflow statement, income statement and balance sheet for the duration of the loan term,
  2. Copies of any or all contracts and lease agreements,
  3. Company registration documents
  4. Tax clearance certificate
  5. Business plan,
  6. Debtors and creditors analysis.

Existing business

  1. Monthly  projected cashflow statement, income statement and balance sheet for the duration of the loan term,
  2. Copies of any or all contracts and lease agreements,
  3. Company registration documents,
  4. Tax clearance certificate,
  5. Annual Financial Statements (which includes Income Statement, Balance Sheet and Cash Flow Statements)
  6. Business plan,
  7. Debtors and creditors analysis.

At DTC we understand the complexities of the various funding agencies and the unique application criteria for each. We have assisted thousands of entrepreneurs through the application process to access funding for businesses, and we can assist you with the same.

Contact us for more information on funding through The Masisizane Fund.