Southern Africa Enterprise Development Fund
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1.Ahanang (South Africa)
This Black woman owned firm focuses on construction of housing for low income communities, in marginalized and rural areas. Because it is a challenging sector, it is classified as a social development investment, with little return expected to SAEDF. There is a case study of Ahanang at the end of Part Two.
2.Century Holding, formerly Leasing Company of Zimbabwe
SAEDF invested in LCZ which later became Century Holdings. SAEDF enjoyed a 44% rate of return on its exit from LCZ in July 2000, keeping a small shareholding to be sold in 2002. This project had impact across the spectrum; creating 125 jobs at the first level, hundreds more in underlying companies; strengthening the financial services sector; providing support for infrastructure through heavy equipment leasing activities; and supporting SMEs that comprise 30 of the client base.
3.Eerste River Medical Center (South Africa)
In 1999, the hospitals in the Western Cape of South Africa were facing severe overcrowding. Eerste River Medical Centre (ERMC), a SAEDF portfolio company, was there to help. With 60 available beds, the medical center helps alleviate overcrowding in the other local hospitals. This venture was designed to suit the medical needs of citizens who, unable to pay high medical fees, otherwise went without care. Located in a working class suburb in the Western Cape of South Africa, the ERMC offers secondary care in general medicine and surgery; obstetrics and gynecology; and pediatrics. In addition, ERMC employed 80 local community members at its peak. SAEDF’s investment in this hospital resulted in an additional breakthrough – business ownership representative of the larger community’s demographic. Whereas the majority of private hospitals in South Africa are owned and operated by the white population, the ERMC is the first private hospital in this region that is owned by black citizens.
ERMC has successfully repaid its investment from SAEDF and has begun private operations – a clear sign of the project’s success and long-term sustainability. And as a result, the Eerste River Medical Centre was able to begin construction in 2009 on a new wing.
4.Explorer Corporation
This is a new type of investment in the SAEDF portfolio: an acquisition as the result of an existing investment. Loita Capital purchased a Zambian credit company, ICC, and reverse-listed it as Explorer Corporation.
5.FRUPAC (Zimbabwe)
This company, which SAEDF has exited, used a cutting edge technology to process frozen fruit and vegetables for export to international markets. It was a demonstration of indigenously owned businesses using new technologies. This was a privatization deal with excellent job creation and gender impact at multiple levels. First, in the company itself, about 90% of employees were previously disadvantaged indigenous women. Then there was expanded employment by the large-scale commercial farmers contracted to supply Frupac. And there was self-employment generated by small-scale growers on development schemes that were predominantly family owned and operated by rural women. The investment also demonstrated sector strengthening because few indigenous owners head large food processing operations in the southern African region.