Backing South Africa’s small business sector

Inyosi Empowerment has been a driving force in providing over 900 million rands in loan funding to small black-owned businesses in South Africa. This funding has played a vital role in advancing the needs of local investors and entrepreneurs. With a focus on stimulating growth in emerging companies, Inyosi Empowerment has been actively supporting businesses with a three to five-year track record since 2012. Evan Jones, Portfolio Manager at Inyosi Empowerment, highlighted the importance of small businesses in driving economic growth and creating job opportunities. The organization's strength lies in providing growth capital funding to businesses looking to expand and take their operations to the next level. Jones emphasized that Inyosi does not provide funding for acquisitions but focuses on supporting businesses in their growth trajectory. One of the key challenges faced by small businesses is access to funding, especially in the absence of collateral. Inyosi Empowerment addresses this challenge by conducting a comprehensive analysis of the business and working with entrepreneurs to secure the loan with various forms of security. Jones stressed the importance of responsible lending and ensuring that businesses can handle the funding provided to them. By offering affordable interest rates and supporting businesses through their growth journey, Inyosi Empowerment aims to bridge the gap for companies that are not yet eligible for commercial bank funding. In terms of the enterprise and supply development landscape, Inyosi Empowerment plays a crucial role in supporting businesses that have outgrown their initial capital but are not yet ready for bank funding. By providing a funding bridge for these businesses, Inyosi Empowerment helps them sustain and grow until they can access commercial bank loans. With a current loan book of nearly 800 million rands and a deployment rate of around 85%, the organization is actively seeking investment opportunities in businesses that are majority black-owned and have a track record of three to five years. One of the success stories highlighted by Jones is the collaboration with Nestle, where Inyosi Empowerment serves as the implementation partner for the company's Youth Employment Service (YES) program. Through this partnership, Nestle funds the salaries of young black South Africans, providing them with valuable work experience. Inyosi Empowerment facilitates the training and placement of these youth in various businesses, creating a sustainable ecosystem that benefits both the youth and the businesses involved. This initiative showcases how strategic partnerships can drive social impact and economic growth. Looking ahead, Inyosi Empowerment aims to continue supporting small businesses by providing growth capital funding in the range of 3 to 5 million rands. The organization's focus on responsible lending and fostering long-term partnerships with businesses demonstrates its commitment to empowering entrepreneurs and driving economic development in South Africa. With a proven track record of success and a strong portfolio of investments, Inyosi Empowerment remains a significant player in the country's small business sector.