This investment vehicle aims to empower innovative black businesses in SA

In a bid to address economic exclusion and empower black-owned businesses in South Africa, MIC Khulisani Ventures has launched a R150 million early-stage investment vehicle. The Mineworkers Investment Company (MIC) CEO Mary Bomela shared insights on this groundbreaking initiative in a recent interview with CNBC Africa. The Coulter Design Event, as the platform is known, aims to provide funding to innovative black-owned businesses, particularly those in the early stages of development. Bomela emphasized the need for capital to fuel the growth of these businesses, highlighting the significant potential that exists within this sector. Traditionally, the focus of MIC has been on investing in mature large corporations. However, recognizing the untapped opportunities in supporting small businesses, the organization has allocated R150 million for initial investments in 7 to 10 ventures. The long-term vision is to expand the initiative in subsequent phases, with the ultimate goal of fostering sustainable growth within the black business community. The selection criteria for businesses seeking funding through MIC Khulisani Ventures are stringent. Prospective ventures must be at least 51% Black South African-owned, with preference given to women-owned businesses. Additionally, businesses must demonstrate innovation, scalability, and a disruptive element within their respective sectors. To qualify for investment, companies must have been operational for a minimum of three years, showing a track record of revenue generation. Applications for funding fall within the range of 15 million to 30 million per investment, aimed at providing substantial growth capital to eligible businesses. Interested entrepreneurs can apply through the organization's website, kudisani.mic.co.za, signaling a clear pathway for aspiring black entrepreneurs to access the resources needed to scale their ventures. The significance of this initiative cannot be understated, particularly in the context of the challenges faced by many black-owned businesses. Access to growth capital beyond the seed funding stage is often a major hurdle for entrepreneurs, leading to a high rate of business failures within the first five years of operation. By filling this crucial funding gap, MIC Khulisani Ventures is poised to make a meaningful impact on the success rate and sustainability of black-owned businesses in South Africa. Bomela underscored the importance of supporting these businesses, especially in a climate where traditional financial institutions may be hesitant to extend credit without the requisite collateral. The initiative seeks to bolster black participation in the economy, driving growth in the startup sector and mitigating the adverse effects of recent socio-economic challenges, such as the civil unrest and pandemic-related disruptions. As the venture progresses through its initial phase of investments, the ripple effects of empowering innovative black businesses could reverberate throughout the broader South African economy. With a keen focus on inclusivity, sustainability, and growth, MIC Khulisani Ventures is poised to be a catalyst for change in the entrepreneurial landscape, ushering in a new era of prosperity for black-owned ventures across the nation.