- identification
- feasibility studies
- programme identification
- programme conceptualisation
- economic empowerment
- organisational building
- organisational development
- implementation
- monitoring
- review
- completion
- additional funding from other financiers
- co-financing with other donors or collaborative partnerships with the Government, the private sector, donors and other civil society organisations.
- 40% of the finding base will be invested in low risk business ventures, such as banking instruments
- 60% will be spread evenly across the following areas:
- 20% into "greenfields" investments
- 20% into management buy-outs
- 20% into existing businesses adhering to empowerment criteria but still committed to growing small business
Why the KT development Group is the first choice for investing in Local Level sustainable development and black economic empowerment in South Africa:
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KDT's role, as a grant-making institution, has become more tightly focused with the formation of the Group and the implementation of the "Programmatic Approach to Development" (PAD) to grant-funding.
The PAD is a move away from the funding of individual and isolated projects to the facilitation, funding and support to selected, flagship, precedent-setting and replicable development models focused, KDT hope to facilitate sectorial and integrated, locally-based and geographically defined development programmes.
The PAD approach is holistic and provides support to communities through various needs development stages such as:
In addition to its own funding, KT seeks leverage:
The Trust administers grants with very few overheads due to the fact that much of the hands-on field work is contracted out to field workers working in the field and in close proximity to KT's target groups. The Trust has retained its excellent reputation at the grassroots level as being able to speak the language of the people and to empathise and sympathise with under resourced communities, This reputation continues to grow as the Programmatic Approach is pursued successfully entrenched in under resourced areas across South Africa.
The Trust approach to development is sure to make it one of the leading edge, grassroots development agencies in the county.
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KTI was formed in1993 after the Kagiso trustees concluded that donor funding would be significantly reduced once there was a new dispensation and normalisation of politics was attained. The business was set up with a US$15-m from J.P. Morgan in the United States.
KTI's objective is to expand its capital through strategic investment in new or existing businesses. Its asset bas has been growing steadily and promises to be a significant player in business - especially black business in SA.
The past five years of its existence, KTI has proved to be a unique business venture, Its primary purpose is to generate profit for shareholders, which includes first and foremost Kagiso Trust. It is this link which makes KTI unique as its objective is to create an income-stream, not for individuals, bur for Kagiso Trust and by extension those who benefit form KT's services. The uniqueness of KTI is also reflected in the way it conducts its business: for example, it does not invest in activies that re harmful to society such as armaments, gambling, skin-lightners etc. In this way, it distinguishes itself as a commercial entity not bent on "making money by any means available".
KTI carries the ethos and values of KT into the boardrooms of corporate South Africa and insists on reflecting the demographics of the South African society in employment, it promotes equity, justice and fairness in the business and labour sector. Some of the companies which were predominantly white, have changed over time since being associated with KTI.
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KTI has established several businesses inline with its focus and they are:
Kagiso Media (KM)
Kagiso Financial Services (KFS)
Kagiso Asset Management (KAM)
Kagiso Equity Fund (KEF)
Kagiso Khulani Supervision (KKS)
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KTE is the small bu8siness development company within the KT-Group. The Group aims at partnering small black-owned businesses with a mixture of primarily loan, but also sometimes grant finance, In addition to enabling small businesses through one-on-one mentoring, access to training and a revolving loan find, KTE also seeks to invest in niche markets critical to promoting sustainable development in South Africa. (for example, the Kagiso Leadership School, Kagiso Educational Television, Kagiso Tourism and the National Small Scale Industries of Southern Africa).
KTE's activities are complementary to the national economic empowerment and development goals, particularly the components stressing the need to build a culture of entreprenuership as well as the need to open up new markets in South Africa.
The establishment of KTE was the result of an iterative process within KT over the past decade: once off the ground, it did not make developmental sense to continue grant financing to small businesses, From KT's perspective, the role of business development in the economy is about generating returns on investment and job creation - not welfare.
KTE targets small businesses which are "unbankable" in the traditional sense. At the moment the bulk of such applications are transferred to KTE from KT. KTE subjects the small business development applications to a battery of analysis designed to gauge the likely profitability of the business, as well as to determine what sort of capacity needs must be addressed if the applicant were to be successfully partnered by KTE.
If the small business requires capacity building, agencies such as the Kagiso Trust Consultancy are sub-contracted to provide customised training programmes sensitive to the particular constraints within which the particular small business is attempting to thrive, In most cases the costs of its training would be covered through a grant component administered by the Kagiso Trust, For loan financing, a flexible interest rate scale is applied to allow for optimal payment schedule by the small business (i.e. accommodating rates when in the beginning when margins are tight, followed by standard rates when the business is stable). Once the business is functioning well, KTE will implement an exit strategy which will have been negotiated with the small business at the beginning of the partnering relationship, The repayment of the loans with interest provides the revolving loan finance for other small businesses seeking assistance.
KTE considers applications ranging from R200 000 to R3-m. Entrepreneurs willing to engage with the latest technologies and business methods will receive preference. KTE's growth strategy is based on expanding its capital base through the following activities:
The investment strategy is intended to product growht with stability.
KTE enables the KT Group to pursue its goals of empowerment and transformation with wider range of tools than in the past. In the current economic context, KTE provides a much needed small business development vehicle, while also generating income to sustain the grant-making portion of Kagiso Trust in the longer term.
Kagiso Educational Television (KETV)
Kagiso Leadership School (KLS)
National Small Scale Industries of Southern Africa (NSSISA)
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Kagiso-Cowi Consulting