Kwazulu-Natal Growth Fund celebrates 15th anniversary
The KwaZulu-Natal Growth Fund (KZNGF) is celebrating 15 years of excellence. Which milestones and achievements have been recorded since its inception?
In 2008 the KwaZulu-Natal Growth Fund (KZNGF) under the KZN Department of Economic Development, Tourism, and Environmental Affairs (EDTA), opened its doors to the public assisting businesses that require funding for projects. A decade and a half later, the KZNGF has made significant strides, staying true to its mission of offering competitive and innovative financing solutions, driving socio-economic growth and paving the way for a better future.
The fund supports black owned businesses through Broad Based Black Economic Empowerment (BBBEE). The focus continues to be on funding projects that will create jobs and grow the economy of the province. Its core emphasis remains funding projects that generate employment opportunities and fuel economic expansion within the province.
Over the past decade, the KZNGF has allocated and disbursed nearly R1 billion to ten notable projects across various sectors, including healthcare, manufacturing, telecommunications, and logistics.
Here are a few of their remarkable success stories:
- Brace Able Manufacturing: With a funding injection of R46 million, KZNGF facilitated the transformation of Brace Able Manufacturing into a 60% black-owned entity. Brace Able operates as a leading supplier of automotive tools and equipment in the automotive sector. Based in Pinetown, Durban, the company has thrived for over three decades, employing 246 individuals directly and an additional 125 indirectly.
- Idube Cold Storage: KZNGF supported the development of an 8680-pallet multi-temperature cold storage facility at the Dube Tradeport Special Economic Zone. This endeavour, funded with R63 million, involved the design, construction, installation, commissioning, and ongoing maintenance of the facility. Notably, the project created 85 job opportunities.
- Busamed Healthcare: The KZN Growth Fund invested in the acquisition of two private hospitals with the initial investment being JT Ross, in KZN. This investment was made alongside Busamed (Pty) Ltd., the hospital operators at Busamed Hillcrest Private Hospital and Busamed Gateway Private Hospital. The estimated value of the transaction, including the acquisition of properties, amounted to R1.6 billion. Currently, these two hospitals employ a combined total of 642 individuals.
- Business for Good: KZNGF extended R21 million in debt funding to Business for Good (BFG) and conferred 51% ownership to a BBBEE company. The project involved expanding BFG Retail’s existing manufacturing capacity in their Pinetown-based factory. With a staff complement of 128 employees, over 80% of whom are black, this initiative has fostered substantial growth.
Are you seeking funding for your KZN-based business?
The KZNGF, an entity under the KZN Department of Economic Development, Tourism, and Environmental Affairs (EDTA), offers various project finance debt solutions:
- Senior Debt
- Mezzanine finance
- Equity finance
The minimum loan size stands at R20 million, with a loan term ranging from 5 to a maximum of 12 years. Equity investments are typically made with an investment horizon of 7 to 10 years.
Who is eligible for funding?
To qualify for funding from the KZNGF, companies or projects must meet the following criteria:
- Registered entity status.
- Full compliance with relevant legislation and adherence to PFMA standards.
- Minimum 51% B-BBEE ownership, including 26% ownership by indigenous black individuals.
- Demonstration of economic stimulation, job creation, and promotion of equitable wealth distribution within the province.
Contact Details
KZN Growth Fund
28th Floor Delta Towers
303 Dr. Pixley Kaseme Street
P. O. Box 1817
Durban
4001
Tel: 031 372 3720
Email: info@kzngf.co.za
Website: www.kzngrowthfund.co.za
