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INVESTED FOR LONG-TERM SUCCESS
NOW IS THE TIME TO BUILD

ABOUT THE SA SME FUND

The SA SME Fund aims to support and grow the country's entrepreneurial sector. The investment focus is particularly aimed at high-potential small, medium and mid-market businesses, to enable them to contribute meaningfully to economic growth and employment creation.

OUR FOCUS AND OBJECTIVE

The Fund has a three-fold focus, and will aim to:

Develop a diversified portfolio of investments through equity and equity-related or debt investments in funds that focus on enterprises with strong growth potential, thereby stimulating employment opportunities in South Africa as a consequence of these investments.

Develop or support, in a focused and additive way, programmes that address non-financial challenges in the SME ecosystem, including mentorship, cash flow and liquidity, as well as access to markets.

Support and promote existing and promising new fund managers.

OVERVIEW OF THE FUND

More than 50 listed businesses, as well as a number of government-mandated institutional funds, have committed approximately R1.4bn to the Fund, in support of the growth and strengthening of the SME sector in South Africa.

We are focused on small, medium and mid-market businesses in the formal sector, with turnover from R20m – R500m. These companies already contribute significantly to the country's economic growth.

In addition to the numerous challenges that SMEs face worldwide, South Africa has difficulties unique to the country, such as skills shortages and high regulatory barriers, which further complicates employment growth potential. In order to become sustainable, it is imperative that SMEs address these factors.

Given our current focus and resources, we are specifically interested in the scalable businesses in this realm, as these have demonstrated the best potential for making a meaningful contribution to sustainable employment growth, in line with our objective. These are firms that are more than three years old, with average annual employment growth in excess of 20% over the previous three years.

We envisage that the focus areas may change over time as the Fund, its resources and the broader SME environment evolves.

WHAT WE DO

We allocate investment capital to accredited fund managers – venture capital or private equity funds – that invest directly in scalable small and medium enterprises with the best potential for growth and sustainable employment creation.

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BACKGROUND

The SA SME Fund was established by members of the CEO Initiative – a collaboration between government, labour and business to address some of the most pressing challenges to the country's economic growth – as an avenue of support for the SME sector.

We are passionate about nurturing our country's vast entrepreneurial spirit by strengthening the local SME ecosystem, through providing much-needed capital, as well as business support and mentorship in equal measure. Where there are existing structures that are already efficient, we will support these, instead of duplicating efforts.

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CONTACT US

Please use the form below to contact us with any questions, comments or suggestions about areas where we can improve.