Old Mutual’s Masisizane Fund celebrates paying out R1 billion in funding for SMEs

Masisizane offers customised business support and capacity building services designed to meet the unique needs of its clients throughout different phases of the business journey. Image: Masisizane.

Masisizane offers customised business support and capacity building services designed to meet the unique needs of its clients throughout different phases of the business journey. Image: Masisizane.

Published Nov 24, 2024

Share

Masisizane Fund (‘Masisizane’) announced on Monday that it reached the significant milestone of R1 billion of funds disbursed to small and medium-sized enterprises in South Africa, since its inception in 2007.

Masisizane is a developmental and transformational funder within the Old Mutual Group, which it says is driven by a mandate to empower black-owned, women-owned, youth-owned businesses, as well as enterprises from rural areas.

Masisizane said it has successfully supported SMEs in key sectors such as agriculture, manufacturing, retail, technology and services.

More than 13 000 jobs have been created through assisting over 400s clients.

Masisizane Fund, the non-profit funding entity CEO Ndumiso Zulu, said, “Reaching R1 billion in disbursements is not just a financial milestone, it’s a testament to the power of inclusive development. Our focus has always been on empowering entrepreneurs that have historically been excluded from economic opportunities.”

“We remain committed to transforming the South African SME landscape by providing funding and support to these groups,” Zulu added.

“We’ve found that many entrepreneurs often struggle with meeting the requirements for funding. Issues such as incomplete business plans, lack of formal financial systems and gaps in operational management are recurring hurdles,” said Zulu.

“At Masisizane, we are working to address these challenges by offering capacity-building and mentorship programmes to help entrepreneurs become funding-ready and to be able to scale their businesses effectively.”

As Masisizane looks to the future, the organisation said it is prioritising initiatives to help SMEs thrive in an increasingly digital and tech-driven economy.

AI, automation and other technological advancements are expected to reshape the SME landscape globally, and South Africa’s developing economy must adapt to these shifts.

“Technology, especially AI, offers immense potential to enhance productivity, improve decision-making, and open new avenues for growth in SMEs – even in rural and underserved areas,” Zulu said.

“We are actively exploring ways to support businesses in adopting these technologies and staying competitive in a global economy. Our approach is to not only provide funding, but also ensure that SMEs have the tools and knowledge they need to embrace evolving markets,” he added.

BUSINESS REPORT