South African Futures Trust lauds resilience shown by small businesses amid pandemic

The South African Futures Trust, established last year with a 1 billion-round donation from the Oppenheimer Generations Foundation, has been a beacon of hope for small businesses navigating the challenges brought about by the COVID-19 crisis. Today, almost 10,000 small and medium-sized enterprises (SMMEs) have been supported by the fund, with close to 100,000 employees benefiting from direct financial assistance. Jonathan Oppenheimer, the co-founder of the South African Futures Trust, sat down with CNBC Africa to provide insights into the workings of the fund and its future plans. One of the key strengths of the South African Futures Trust has been its ability to efficiently deliver financial support to those in need. By collaborating with partner banks like Absa, FNB, Standard Bank, and Investec, the fund was able to streamline the process of disbursing loans, demonstrating agility and effectiveness in reaching a significant number of SMMEs in a short period of time. Despite receiving over 40,000 applications for support, the fund successfully selected and assisted nearly 10,000 businesses before the initial funding was exhausted. The selection criteria were predominantly left to the partner banks, who leveraged their knowledge of the clients to identify those most likely to benefit and survive in the challenging economic landscape. What emerged from this initiative was the resilience and fortitude of the SMME community, showcasing a lower default rate than anticipated and highlighting the tenacity of South African entrepreneurs. While the support provided by the fund was initially intended for short-term relief during the onset of the pandemic, the success and feedback from the first phase have paved the way for a more sustainable and impactful future. Looking ahead, the South African Futures Trust is gearing up for 'Version 2.0,' a strategic evolution that will focus on continued support, growth, and development of the SMME sector. By reinvesting returned funds from the first phase into innovative projects and partnerships, the trust aims to foster a thriving ecosystem for small businesses in South Africa. With a lifespan reaching until 2040, the fund has set ambitious goals to become a leading force in SMME development and job creation within the country. Jonathan Oppenheimer envisions the South African Futures Trust as the go-to entity for small business support, with a goal of generating hundreds of thousands of jobs and making a substantial impact on the local economy. As the fund embarks on its journey towards long-term sustainability and growth, the vision is clear: to catalyze a transformation in the SMME landscape, fueling prosperity and resilience for generations to come.