New fund to help create black wealth in fuel sector
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JOHANNESBURG – A new fund has been created to lower the entry barriers into fuel retail franchising by providing debt and equity funding to black franchise entrepreneurs.
The SA SME Fund and Masisizane Fund have contributed R70 million to the Masisizane Franchise Fund.
The companies said yesterday that the fund aimed to stimulate economic development, encourage long-term wealth for previously disadvantaged individuals, especially women and youth, in the fuel retail industry and create much-needed jobs.
Masisizane Fund chief executive Zizipho Nyanga said: “The fund invests in what we believe is a sweet spot; an ever-present demand for fuel, the availability of large tracts of prime, unused land in townships and rural areas, and oil companies’ desire to transform. This creates a perfect opportunity for success.”
The fund help the previously disadvantaged purchase and expand a fuel station franchise as well as business support in the form of mentorship.
Ketso Gordhan, SA SME Fund chief executive, said: “This fund will go far in creating and establishing real wealth for black entrepreneurs in an industry that has been resilient.”