South Africa launches $95m fund

South African president, Cyril Ramaphosa, has launched the $95 million SA SME Fund, headed by the country’s top businessmen. Its intention is to grow the economy by supporting startups and SMEs.

At the launch of the fund in Johannesburg, Ramaphosa said, “This initiative is beginning to pay off and is operating at a level that matters most. SMEs create the jobs we need the most. It is the SMEs you are targeting and that is precisely where we want you to keep your focus.”

Out of the $95 million, $50 million is already committed. The fund will invest in SMEs that have a turnover of $1.40 - $35.23 million, and aims to support “10 significant black businesses, 200 SMEs and five black entrepreneurs over the next five years.”

The SMEs will also receive mentorship as part of the deal whereby it receives funding. Read more about the fund and its objectives here.