Enablis renames Khula loan fun

Enablis Entrepreneurial Network has announced the re-naming of its loan guarantee fund to the Khula Enablis Loan Fund

October 4, 2011

This name change is reflective of the support that funding partner Khula Enterprise Finance has committed to supporting South African entrepreneurs.

Khula Enterprise Finance has been Enablis’ funding partner since entry into South Africa in 2004. During this time, Khula has been an investor in two Enablis funds (Khula Enablis Loan Fund and Khula Enablis SME Acceleration Fund), committing a total of R60 million in financing opportunities to deserving entrepreneurs.

To date, the Khula Enablis Loan Fund has guaranteed loans to 62 entrepreneurs, of which 42 are black entrepreneurs and 11 are female entrepreneurs. This continued support demonstrates Khula’s commitment, on behalf of the SA government, to the SME market and its unique capability to address unemployment.

“Khula Enterprise Finance is dedicated to the development and sustainability of small businesses in South Africa. We share Enablis’ commitment to the economically vital SME sector and are proud to partner with them in the coupling of important capacity building and finance opportunities,” said Khula Enterprise Finance chief operating officer Mkhululi Mazibuko.

The Khula Enablis Loan Fund offers access to R40 million that provides a 90% loan guarantee exclusively to Enablis members in South Africa through its banking partner, First National Bank. The Fund allows entrepreneurs with viable and sustainable businesses to obtain risk funding under favourable terms. Loan amounts are in the R100,000 to R5 million range. This guarantee is particularly important and relevant where the entrepreneur has no or limited financial resources and is at an early stage or expansion phase.

The Khula Enablis SME Acceleration Fund is an innovative R50 million Fund that aims to provide risk capital, to entrepreneurs with start-up and early-stage businesses. Loan amounts are in the R25,000 to R2.5 million range. Funding from this pre-venture capital facility is in the form of either equity and/or debt instruments.

In both funds, investment decisions are made by an Investment Committee composed of nominees of each of the investors. Enablis’ finance arm in South Africa, Enablis Financial Corporation SA (Pty) Ltd, acts as the fund manager providing both the financial and technological expertise, to evaluate each investment proposal.

“Small and medium businesses are responsible for 34% of the GDP and 54% of all employment in South Africa. Under the right conditions, entrepreneurs are uniquely capable of addressing the country’s employment goals of creating five million jobs by 2020,” says Enablis South Africa country manager Victor Mzimela. “Enablis is fortunate to have partners like Khula who share our commitment to small and medium enterprises.”

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