Securing the right business funding can be one of the most difficult parts of starting and growing a business.
While business funding can be overwhelming, the good news is that South African entrepreneurs have many different funding options available. One of these is Old Mutual’s Masisizane Fund.
The Masisizane Fund is a business funding and development initiative aimed at marginalized business owners. Let’s explore exactly what the fund offers and who is eligible to apply for funding.
What is Old Mutual’s Masisizane Fund?
Old Mutual’s Masisizane Fund is a non-profit organization dedicated to providing enterprise development support to small, medium, and micro enterprises in South Africa.
The fund’s main goal is to assist these businesses in establishing and growing their operations. Masisizane has a particular focus on supporting marginalized groups, including black-owned businesses, women entrepreneurs, youth, and business owners with disabilities.
The Masisizane Fund offers development and commercial financing as well as business support services. Through this, the fund hopes to reduce poverty, alleviate inequality, and improve the unemployment situation in South Africa.
By creating an environment that fosters business growth, the fund also wants to improve the overall small business climate and attract investment in South Africa.
How Much Business Financing Does Old Mutual’s Masisizane Fund Offer?
The Masisizane Fund offers financing from R250 000 to R20 million. Clearly, the fund is suitable for businesses of all sizes. Old Mutual’s Masisizane Fund also takes an agnostic approach to different sectors, meaning any kind of qualifying business can apply for funding. It’s also important to note that the program sees business funding as a partnership, not just a transaction. This means funding also includes business support and development.
Who Can Apply for Old Mutual’s Masisizane Fund?
To be eligible to apply for Old Mutual’s Masisizane Fund, your business needs to match the following criteria:
- The enterprise must be majority-owned (at least 51%) and controlled by black South Africans or naturalized South Africans.
- The business must be officially registered with SARS and be tax compliant.
- One of the shareholders of the enterprise must be actively involved in the day-to-day operations of the business on a full-time basis.
- The enterprise must be financially viable, being able to meet its ongoing financial commitments.
- There must be a proven commitment from the business owner to the success of the business. This could be financial, like investing their own capital into the business, or non-financial, like actively participating in any strategic decisions of the company.
Overall, Old Mutual’s Masisizane fund is dedicated to making a positive impact on South Africa’s economic and social landscape. The fund is an excellent opportunity for South African entrepreneurs to access the financing and business support they need.
It’s also important to understand what other types of business funding are available. For example, other private companies also offer business funding initiatives. Various government funding initiatives also exist. Be sure to understand all options available before choosing a funding and development solution for your business.