Business Partners has launch a R150-million Education Fund to provide existing and aspiring entrepreneurs in the educational sector with the risk capital and mentorship required to pursue projects.
“Education remains a major challenge in South Africa and has a direct impact on the current skills shortage in various facets of the economy,” MD Nazeem Martin said at the launch of the fund, which specifically targets small and medium-sized enterprises (SMEs).
He adds that aspiring learners have lost out on many opportunities owing to a lack of physical infrastructure and access to good schools, and this, in turn, is negatively affecting the country’s economy.
”The country’s education system is currently under pressure, and faces various challenges, such as a shortage of school infrastructure and high learner to teacher ratios. These challenges have created a demand for private education at all levels, from preschool through to tertiary education.”
The fund will bridge the gap by ensuring that entrepreneurs who want to introduce independent schools in communities have access to finance and mentorship to provide the services.
By so doing, the fund will present an opportunity for good-quality schooling opportunities for learners, which will increase learners’ knowledge and skills.
Also, Martin says that the objective of the fund is to provide finance and mentorship to profit-driven enterprises within the education field, which, in turn, ensures that skills development continues in the country.
The company also points out that, currently, only 100 000 of a possible 530 000 student accommodation opportunities are available for the university student population. As a result, through the fund, a business opportunity exists for entrepreneurs to build student accommodation facilities.
“The fund, which forms part of the company’s ‘square peg’ movement aims to unleash South Africa’s SMEs that operate within the industry so that they can play their rightful role in generating wealth, growing our economy and creating jobs for many by seizing the opportunities the sector offers,” mentions Martin.
The SME Education Fund is allocated over a five-year period. However, there is no time limit allocated to the availability of the finance and, should the fund reach its limit of R150-million before the end of the five-year period, Business Partners evaluates the amount still needed for financing and provides adequate funds to complete the project.