SA SME Fund has partnered with Masisizane Fund to create a Fund to invest in Black-owned fuel station dealerships. The Fund is expected to create long-term wealth and economic opportunities for Black entrepreneurs, spark much needed economic stimulation in townships, rural and peri-urban areas, and help oil companies accelerate their transformation commitments and goals.
The SA SME Fund and Masisizane Fund contributed R50 million and R20 million respectively into the Masisizane Franchise Fund (“the Fund”). The Fund aims to lower the entry barriers into fuel retail franchising by providing debt and equity funding to Black franchise entrepreneurs. The Fund will be managed by Masisizane Fund Management.
Zizipho Nyanga, CEO of the Masisizane Fund, says, “Our vision is that the Fund will encourage economic activity and job creation in areas of our country that need it most. Our purpose is to create jobs, and to provide the right opportunities for Black entrepreneurs to build inter-generational wealth, while achieving attractive returns for the Fund. The Fund invests in what we believe is a sweet spot; an ever-present demand for fuel, the availability of large tracts of prime, unused land in townships and rural areas, and oil companies’ desire to transform. This creates a perfect opportunity for success.”
The Fund not only provides funding to purchase and expand a fuel station franchise, but also offers business support in the form of mentorship and business advisory services. It aims to play a role in enhancing the participation of previously disadvantaged individuals, especially women and youth, in the fuel retail industry.
Ketso Gordhan, CEO of the SA SME Fund, says, “We are delighted to partner with Masisizane on this very important initiative. We believe that this Fund will go far in creating and establishing real wealth for Black entrepreneurs, in an industry that has been resilient despite the subdued economic environment. Masisizane has a solid track record of providing entrepreneurs with the perfect mix of financial and business support, so we look forward to their future successes.”
Nyanga says, “This partnership is about jointly bringing about a brighter tomorrow for South Africa and her people. We believe in collaboration and that by partnering with people who have similar mandates, we can together achieve so much more.
“Our team is looking forward to growing this fund as there is a great opportunity to do greater things in the franchise space. We believe the Fund has tremendous potential to grow and increase its pool of investors, and play a meaningful role in our economic development and transformation,” concludes Nyanga.