Masisizane Fund

ABOUT US

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

The understanding and the partnership we create add value and offer innovative enterprise models aimed at ensuring long-term enterprise growth, sustainability and development impact.

How did it all start?

The Masisizane Fund (‘Masisizane’) is an Old Mutual initiative that was established in 2007 following the closure of the Unclaimed Share Schemes Trust in consultation with the National Treasury of South Africa. Masisizane was set up as a non-profit funding company to provide loan financing and support to small, medium and micro enterprises (SMMEs).

Our mandate is to contribute to job creation, reduce inequality, promote economic growth and support, develop and promote entrepreneurship, while attracting investment to SMMEs.

Our Vision

Enable positive change through sustainable enterprise development in our communities.

Our Mission

We strive to contribute 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.

What is important to us?

• Creating jobs, eradicating poverty and reducing inequality
• Contributing to economic growth.
• Bias towards women, youth and disabled.
• Focus on economically under-developed areas: rural, townships and peri-urban areas.

Why should you choose Masisizane?

• Our products are affordable and flexible
• We are customer-focused, will help you grow to your full potential and become sustainable.

Masisizane Celebrates 10 Years of Success

Following 10 years of hard work, job creation, boosting economic growth and achieving other significant goals, the Masisizane Fund awarded the success of their client.

SERVICES

What we Fund

We invest in SMMEs that have registered business, a clear marketable product or service and create and retain jobs.

The Masisizane Fund provides loan financing in the following sectors:

• Agribusiness (Primary & Agri-processing)
• Franchising & Commercial
• Supply Chain & Manufacturing

Agribusiness

Grain and Vegetable Crop

This offers a revolving production facility (seasonal crops), a term which runs from 36 to 60 months which is reviewed seasonally. Prime pricing of -5% to +5% and 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 – 60 months. Prime pricing is -5% to +5% and informed by rate of recovery. The Risk Mitigation is a loan pain 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 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.

Franchising & Commercial

We support tested enterprise methods with relatively low failure rates where high economic and social transformation is created. We have a strong bias towards women and youth ownership.

High performing, viable commercial enterprises, creating employment opportunities in rural, township and peri-urban with women, youth and ownership by people with disabilities will receive preference.

Supply Chain & Manufacturing

This is a short term facility of up to 36 months which is reviewed annually or linked to contracts. Prime pricing is -5% to +5% and informed by rate of recovery. The Risk Mitigation is off take agreements.

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

Contract Financing

This facility offers revolving contract financing of up to 36 months or contract period which is reviewed annually. Prime pricing is -2% to +8% and informed by rate of recovery. The Risk Mitigation is off take agreements and cession of contract.

Application Process

Masisizane Fund focuses on productive sectors that have high employment and growth multipliers with a strong rural, township and peri-urban bias.

Masisizane Fund provides loan financing in the following sectors:

• Agribusiness (Primary and Agri-processing)
• Franchising & Commercial
• Supply Chain & Manufacturing

Non-financial value adding services includes:

• Capacity Development: business management and technical support.
• Financial Education
• Market Development
• Product/Service quality standards and compliance

A business must show financial feasibility and the ability to repay a loan.

Do you qualify for funding?

The following general criteria must be adhered to, with a bias to women, youth and people with disabilities:

• The investee must be an SMME (as defined in the National Small Business Act)
• Business owners must be involved in the business operations and management of the company
• The enterprise must have a formalised registered business structure (sole proprietorship, co-operative, company, closed corporation, or trust)
• Comply with all the statutory requirements governing the type of entity
• The enterprise must have a clearly defined marketable product or service
• The enterprise must create or retain jobs on a sustainable basis
• Masisizane will not finance business owners that have declared bankruptcy in other ventures
• Masisizane will not finance businesses that would cause damage to the environment, engage in exploitative labour practices, or cruelty to animals
• Financing must be in compliance with the National Credit Act, Masisizane’s loan policies & procedures and Old Mutual Finance Credit policies.

These industry sectors will not be considered for funding:

• Gambling
• tobacco
• alcoholic beverages
• sex trade enterprises
• illegal or immoral activities
• businesses that support the military, i.e. war and related activities

What you need in order to apply

The following documentation is what you will need as part of the application process:

• Loan Application Form
• Company Profile and Business Plan
• Certified copy of Company Registration
• Certified copy of Company Bank Statements
• Curriculum Vitae of all members
• Certified copies of educational or skills development certificates
• Certifiied copies of any membership certificates
• Statement of Assets and Liabilities
• Audited financial statements
• Personal Information form of both spouses if married in Community of Property
• FICA verification documents of both clients and suppliers
• Quotations
• Order of tender documents
• Photos of enterprise
• Motivation letter
• Market analysis in the motivation letter

Application Process

The timelines indicated are what the Masisizane Fund estimates and will endeavour to achieve, however these may vary depending on a number of factors, including:

Complexity of the application, deal structure, etc.

Availability of the applicant during the evaluation process to engage with Masisizane Fund at the site where funded activities will be undertaken, or as may be required.

Time it takes to obtain further information from the Applicant.

Step 1: Screening (1 – 2 weeks)

Submit the following documents for an initial screening by the relevant provincial office:

• Comprehensive business plan with market analysis and projections;
• For established businesses – past financials (preferably 3 years) and the latest management accounts;
• For start-up businesses – financial projections;
• Tax clearance certificate;
• Off take agreements and/or letters of intent;
• Signed consent for a credit check.

Once the initial screening has been completed, a full due diligence exercise, including a site visit will follow.

Step 2: Loan application and assessment ( 2 – 3 weeks)

• Business plan assessment
• NCR compliance
• Regulatory compliance e.g. tax, trading licenses, permits
• Industry and business analysis

Step 3: Due Diligence (4 – 8 weeks)

• Site visit to the Applicant’s operating premises
• Market analysis of the business
• Ownership and management
• Operations and processes
• Loan repayment ability
• Deal structuring
• 3rd party assessment (as required)

Step 4: Approval (2 – 12 weeks)

• Decision by EXCO and Credit Committee (approximately 2 – 6 weeks)
• Approval by Board (approximately 4 – 12 weeks)

Step 5: Disbursement (2 – 6 weeks)

• Contracting and disbursement