How we operate

KTE will provide finance of between R500 000 and R3 million to carefully selected small and medium-sized businesses. Due to the excessive demand for KTE’s services (in part due to the excellent reputation Kagiso Trust has developed over the years both the grassroots and democratically-elected government arenas), a stringent selection process is applied. KTE’s commitment to the long term development of the South African economy and its people has necessitated that certain sectors are prioritized for investment.

KTE favours investment in the following sectors (service providers and intellectual property companies):

• education (private schools, training aids and training material, training through mass media, niche training programmes)
• information technology (software design and integration, e-commerce, cd rom application, networking)
• telecommunication
• tourism
  

Areas which KTE will not consider for investment are: mining and mining exploration, property, alcohol, tobacco, hotels and gambling businesses, construction, clothing and textiles, franchises, transportation, environmentally unfriendly products and processes, retail outlets and armaments/security companies.

The selection process

KTE professionals conduct initial discussions with a prospective business partner after receipt of a thorough, acceptable business plan. Depending upon the outcome of this discussion, the small or medium-sized business may be referred to better suited financing bodies, or asked to submit to a KTE due diligence process. After a careful assessment of the viability of the business from a variety of financial, economic and social perspectives, the business will be subjected to a battery of questions from the KTE Investment Committee. Based upon the issues raised by the Committee, further information may be requested or a decision may be rendered. The entire selection process takes approximately six weeks to complete, another reason why high potential enterprises are pursuing KTE as an investment partner.