Godisa – a Setswana word which means ‘to nurture or grow’ – aptly describes the fund’s aim. It is a joint initiative between Transnet, the Small Enterprise Finance Agency (Sefa) and Anglo American’s enterprise development arm, Zimele. Each partner contributed R55 million to the fund.
According to Khanyisile Kweyama, executive director of Anglo American SA and chairperson of Zimele, the fund mainly focus on assisting businesses owned by women, young people and people with disabilities. In addition to providing loans to black-owned businesses in the manufacturing and services sectors, Godisa will also provide beneficiaries with free technical and business support.
The fund has allocated R150 million for investment financing and R15 million for support services to these businesses over a 10-year period. Recipients qualify for preferential interest rates.
Applications need to be in the form of investment proposals and include a business plan. Once received and screened, potential recipients will be asked to present their business cases.
Should the business case be accepted, a due diligence process will be performed to ensure that the business is viable.
Business owners applying to the fund must:
Permanently run and manage a business that is at least 51% black-owned or 30% black female-owned.
- Be a South African citizen.
- Be an existing or potential Transnet supplier.
- Have a BEE status level between one and four, regardless of turnover.
- Preserve existing jobs or aim to create new jobs.
- Have an existing environmental protection plan.
- Have or plan to have an HIV/Aids prevention and management programme. Recipients will have to implement one within six months of financing.
- Have sufficient cash-flow to service the finance
- Maintain proper accounting records.
- Have the scope to grow in order to supply clients other than Transnet.
- Visit www.angloamerican.co.za for more information.