Investment Partners – FMCG Supplier Development Initiative

Are you a prospective funder and investor for the FMCG SDA?

FMCG SDA impact investment partnerships:

Corporate sponsorships, where we partner with large corporations to secure sponsorships in exchange for brand visibility and support recognition.

Private partnerships, where we partner with private sector entities to co-fund specific aspects of the programme, leveraging their resources and expertise. This would include private companies interested in collaborating with the public sector for local economic development and infrastructure projects.

Impact equity-based investors who are interested in funding initiatives that generate measurable social, environmental impact and financial returns. These funds and investors tend to focus on programmes that meet social responsibility, environmental sustainability, and community development aims.

High-net-worth individuals, philanthropists, corporate executives, and community leaders with an interest in local economic development and sustainable investment opportunities.

Companies with robust and relevant Corporate Social Responsibility (CSR) programmes that are able to provide funding and resources in line with their social responsibility goals.

Development Finance Institutions that can provide investment that focuses on funding projects with significant social and economic benefits, such as job creation and local production.

FMCG SDA - Flexible fund sourcing and management options - which approach is right for you?

Recognising the diversity in investor preferences regarding fund management, FMCG SDA offers two distinct approaches.

Option 1 facilitates a streamlined, third-party managed fund solution, whereas Option 2 provides investors with direct involvement in project management and execution through the Programme Principal.

Option 1

Upon the commitment of funds, a designated third-party fund manager will oversee the distribution and administration of the capital. Investors will be furnished with comprehensive reports detailing how their funds have been allocated and the consequent impacts, all without necessitating their direct involvement. This streamlined approach ensures efficient fund utilization and allows investors to monitor progress with ease.

Option 2

In this model, ESD practitioners directly manage their investment portfolios, providing their networks with direct oversight and detailed reporting on the deployment and outcomes of their contributions. These intermediaries report to the designated third-party fund manager to ensure integration with public sector funding requirements and operational support from the Programme Principal.

Our commitment is to offer a diverse array of funding and management options that can be customized to meet the specific needs of our investors and their corporate partners. By adopting a flexible approach, we facilitate the achievement of enterprise and supplier development objectives, contributing significantly to the growth and empowerment of MSMEs within the FMCG Supplier Development Accelerator.

What next

Investment options

Government is committed to co-fund MSME investment funding by 50%, providing assurance of shared financial commitment from the outset.

Central to this commitment FBSA leads the Provincial Retailer Localisation Plan with the demand sector for uptake of consumer goods from (compliant producers) supported in the FMCG SDI accelerator.

01

Impact investments include investors, investment intermediaries, technical or operational service providers across the supply chain.
The private sector complements public fund endowments with impact investment instruments
that include corporate social responsibility (CSR) initiatives, Enterprise Development (ED), Enterprise Supplier Development (ESD) Socio-Economic Development (SED) and Broad-Based Black Economic Empowerment (B-BBEE) contributions.

02

Equity investment instruments provide capital and support to help businesses grow and thrive. These are: Common Shares, Preferred Shares, Convertible Preferred Stock, Equity Units, Venture Capital, Angel Investment, Crowdfunding, Private Equity, Initial Public Offering (IPO), Follow-on
Offerings.

Investment profiles in the context of FMCG Supplier Development include standard Equity Investment, Debt Financing, Grant Funding, Venture Capital, Impact Investment, Technical Assistance, Capacity Building, Infrastructure Support, Market Access Programs and Sustainability Initiatives.

These investments not only provide necessary capital but also bring business development expertise
and market access, creating a comprehensive support system that enables MSMEs to thrive.

03

Philanthropic investment is aligned to the United Nations Sustainable Development Goals (SDGs). It refers to the strategic allocation of funds and resources by philanthropic organisations, foundations and individuals to support initiatives that directly contribute to achieving the 17 SDGs.

These goals aim to address global challenges such as poverty, inequality, climate change, environmental degradation, peace, and justice by 2030.

Get involved today!