How Remgro’s one billion rand fund for SMEs will work

Last week, South Africa's President, Cyril Ramaphosa, announced that the Rupert and Oppenheimer families had each contributed one billion rand to assist small businesses affected by the coronavirus pandemic and the country's 21-day lockdown. More details have now been revealed regarding the Rupert family funding, which will be administered by BUSINESS/PARTNERS, a company in which Remgro owns a 42.8 per cent stake. Ben Bierman, the Managing Director at BUSINESS/PARTNERS, shed light on the fund in an interview with CNBC Africa. The focus of the fund is to provide a much-needed injection of relief to small businesses in South Africa. The application process for the funding is expected to go live by the end of the week, allowing small businesses to apply for assistance. The funds will be distributed in the form of grants with no repayment obligations for qualifying businesses. Additionally, there will be a loan component for larger businesses, with an interest-free period of 12 months. Although the Rupert family's contribution is a donation, businesses that become profitable in the future will be expected to repay some of the funds. This initiative aims to support small businesses through the current challenging times until the impact of the virus subsides. The fund is open to all businesses in South Africa, not limited solely to BUSINESS/PARTNERS clients or companies within the Remgro Group. Collaboration with other entities, such as the Oppenheimer family and the government, is welcomed to maximize the support provided to small businesses. While there is currently no formal cooperation with the Oppenheimer family or the Solidarity Fund, efforts are being made to align and unify actions to address the broader challenges posed by the pandemic. The Rupert family's fund stands out for its specialized focus on small businesses, offering a targeted approach to provide much-needed capital and support to help them weather the current crisis. As the fund progresses, further alignment and collaboration with other entities will likely be pursued to identify and address the most critical needs in the fight against the virus.