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About Isibaya

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About Isibaya - Allows authors to enter rich text content.  About Isibaya

 

ABOUT US

Isibaya Fund is a Developmental Investment Fund managed by the Public Investment Corporation.   The Fund was established in 1999 to invest in projects that will have a positive social impact on ordinary people.   It is targeted at providing finance for projects that support the long-term economic, social and environmental growth of South Africa and the rest of the African continent.

Isibaya Fund seeks to pursue and contribute to the transformation and development of the economic landscape of the country in a socially responsible manner through investment in these focus areas:

·         Private Equity

·         Developmental Investments

OUR CLIENTS AND BUSINESS PARTNERS

Isibaya Fund provides finance to private sector and public sector organisations that require funding for direct implementation of projects or to intermediaries (such as fund managers).   Also, it may co-invest with other institutions having a similar objective of earning satisfactory financial returns and having a strong developmental impact.

The PIC is a signatory to the United Nations Principles of Responsible Investment and the United Nations Global Compact.   Funding will, therefore, be provided only in  projects that promote sound governance, environmental and social practices.

The PIC supports BBBEE and seeks to implement, where appropriate, the BBBEE Codes of Good Practice issued by the Department of Trade and Industry.

BROAD FINANCING INSTRUMENTS AND TERMS

Isibaya Fund may provide financing in the form of equity, mezzanine and senior debt.   The type of funding will depend on the individual circumstances of each project.   Where appropriate, Isibaya Fund will co-invest alongside other financial institutions.

The nature and extent of a partnership will vary according to the individual circumstances of each project.   The term of funding is usually not less than five years and will be influenced by the nature of the transaction funded and its projected cash flows. 

FUNDING

The objective of the Isibaya Fund portfolio is to earn good financial returns whilst supporting positive, sustainable economic, social and environmental outcomes in South Africa and the rest of the African continent through the various Funds illustrated in the table below. 

AREA:SOUTH AFRICA
FUNDSFUND PURPOSESECTOR FOCUSBROAD ELIGIBILITY CRITERIA
DIRECT INVESTMENTS

Economic Infrastructure

 

 

 

 

 

 

 

 

 

To invest in large scale and long term infrastructure projects that achieve good capital returns while also acting as a catalyst to unlock economic potential and to attract foreign direct investment.

 

  • Energy infrastructure
  • Commuter transport
  • ICT and Broadband infrastructure
  • Water infrastructure
  • Liquid fuels
  • Logistics network
  • Funding starts from         R50 million;
  • Funding instruments may comprise of equity, preference shares, mezzanine, debt or a hybrid thereof;
  • Funding will be commercially priced;
  • Funding terms will usually be 7 years or longer, however shorter periods may be considered where there is high developmental impact and/or financial returns;
  • Funding shall be utilised for construction, improvement and/or the replacement of infrastructural frameworks;
  • Security may comprise various assets deemed acceptable by the PIC;
  • Investments must yield significant developmental impact;
  • Applicants for funding shall espouse the aims of BBBEE with a preferred minimum of level 3;

Environmental Sustainability

 

 

 

 

To invest in projects that offer solutions for sustainable and diverse energy sources and reduces any adverse environmental impact while delivering a real economic return. 
  • Renewable energy
  • Energy efficiency
  • Energy storage
  • Clean technology 
  • Green firms
  • Conservations
  • Recycling
  • Waste management
  • Climate change

Priority Sector

 

 

 

 

 

 

 

 

 

 

To invest in projects that contribute to the growth of the economy through job creation, skills transfer, poverty alleviation and rural development.

 

 

 

 

 

  • Agriculture
  • Agro-processing
  • Tourism
  • Beneficiation
  • Affordable housing
  • Education
  • Skills development
  • Healthcare
  • Construction
  • Business process outsourcing
  • Manufacturing
  • Metals fabrication
  • Motor vehicle components and accessories
  • Chemical, plastics and pharmaceuticals
  • Pulp, paper and furniture
  • Business services
  • Medical services
  • Non-ferrous metals 
Private Equity

To generate income and capital appreciation by making investments across all sizes of entities: early stage venture capital, small, medium and large-sized unlisted companies located in South Africa and the Rest of the African continent.

 

Across all sectors except:

  • Gambling,
  • Ammunition and
  • Sin industries.

 

Small Medium EnterprisesThe purpose is to invest in and support Small and Medium Enterprises in a manner which will yield satisfactory financial returns for the investors while contributing positively to the economy particularly in terms of entrepreneurship, new enterprise development and job creation.

Across all sectors except:

  • Gambling,
  • Ammunition and
  • Sin industries.
  • Funding for retail starts from R10 million and R100 million for wholesale.   Lesser sums may be considered on a case by case basis;
  • Funding instruments may comprise of equity, preference shares, mezzanine, debt or a hybrid thereof;
  • Funding will be commercially priced;
  • Projects that should build or help to build capacity for SME's;
  • Projects that focus on financing SME's through intermediaries;
  • Expanding productive capacity of existing SMEs
  • Funding to start new SMEs
  • Buy-in or buy-out of SMEs where emphasis is focused on the promotion of entrepreneurship particularly amongst previously disadvantaged individuals.
  • Applicants for funding shall espouse the aims of BBBEE with a preferred minimum of level 3
INDIRECT INVESTMENTS
Fund of FundsTo generate income and capital appreciation by making investments across all sizes of entities: through holding a portfolio of other investment funds instead of investing directly. 

Across all sectors except:

  • Gambling,
  • Ammunition and
  • Sin industries.
  • Both Established and Developmental Fund Managesr to have a minimum Level 3 BBBEE contributor status.
  • Investment team to have an identifiable track record.
  • Minimum funding requirement of R100 million.
  • Developmental Fund Manager to be majority black owned and managed.
  • Fund strategy to be in line with that of the PIC.
  • Strong pipeline
  • Fund Manager and General Partner to meet the minimum BBBEE ownership requirements.

 

AREAREST OF AFRICA
FUNDSPURPOSESECTOR FOCUSBROAD ELIGIBILITY CRITERIA
DIRECT INVESTMENTS 
Development InvestmentsTo invest in large-scale and long term infrastructure projects that generate good capital returns, while acting as catalysts to unlock the rest of Africa's economic potential and attract foreign direct investments
  • Energy
  • Transport and logistics
  • Social infrastructure and other related sectors
  • Water
  • Information Communication Technology (ICT)
  • Funding starts from USD 50 million;
  • Funding instruments may comprise of equity, mezzanine, debt or a hybrid thereof;
  • Funding will be commercially priced;
  • Funding terms will usually be 7 years or longer, however shorter periods may be considered where there is high developmental impact and/or financial returns;
  • Funding may be utilised for construction, development and/or improvement and replacement of infrastructural frameworks within Africa;
  • Security may comprise various assets deemed acceptable to the PIC;
  • Investments must yield significant a developmental impact;

Private Equity

 

To generate income and capital appreciation by making investments across all sizes of entities: early stage venture capital, small, medium and large-sized unlisted companies located across the African continent.

Across all sectors except:

  • Gambling
  • Ammunition
  • Sin industries

 

  • Funding starts from USD 20 million;
  • Funding instruments may comprise of equity, mezzanine, debt or a hybrid thereof;
  • Funding will be commercially priced;
  • Funding terms will usually be 7 years or longer, however shorter periods may be considered where there is high developmental impact and/or financial returns;
  • Funding may be utilised for construction, development and/or improvement and replacement of infrastructural frameworks within Africa;
  • Security may comprise various assets deemed acceptable to the PIC;  
  • Investments must yield significant a developmental impact;
INDIRECT INVESTMENTS
Fund of fundsTo generate income and capital appreciation by making investments across all sizes of entities: through holding a portfolio of other investment funds instead of investing directly. 

Across all sectors except:

  • Gambling ,
  • Ammunition
  • Sin industries
  • Investment team to have an identifiable track record.
  • Minimum funding requirement of USD10 million.
  • Developmental Fund Manager to be majority African owned and managed.
  • Fund strategy to be in line with that of the PIC.
  • Strong pipeline
  • Fund Manager and General Partner to meet the minimum black African ownership requirements.
  • On the ground presence. 

To apply for funding, please click here to register and complete the application form.