Johannesburg - Ditikeni, a new closed-end investment fund, has been established to meet the funding needs of non-governmental organisations (NGOs), which have suffered under a severe reduction in donor funding since the demise of apartheid.
Barry Streek, one of the founding directors of the company, said on Tuesday that the fund owed its origins to the Interchurch Organisation for Development Co-operation of the Netherlands, which has funded many South African NGOs. It is intended to be an independent and self-sustaining fund able to support local NGOs.
"Ditikeni" is Tshivenda for "something to lean on". Its founders come from diverse NGOs, including the Association for Rural Advancement, Centre for the Study of Violence and Reconciliation, Labour Research Service, Social Change Assistance Trust, Trust for Community Outreach, and Education and the Workers Education Project.
In addition, the company has appointed an investment committee consisting of people from African Harvest, an empowerment investment company; Orbicom, the broadcasting transmitting service; and Gemini Consulting.
Streek said the fund hoped to raise at least R2 million through a private placement of shares ending on December 15.
The fund is designed to create a long-term source of income for participating NGOs in the wake of a funding squeeze for NGOs. Streek said the fund raised R1 million within the first two weeks of its launch on September 18. It has commitments for a further R500 000.
Consistent with the principles of ethical investment funds, Ditikeni will not invest in companies involved in the armaments industry. African Harvest will serve as Ditikeni's investment adviser.
The fund did not expect to pay dividends to its shareholders for the first five years. Instead, it hopes to maximise its investment opportunities to create"a sustainable endowment fund after five years", said Streek.