Nedbank Launches USD 550 K Indalo Fund

Finance institution Nedbank announced the launch of the R10-million (USD 550 K) Indalo Fund at the Indalo Inclusive Symposium at the Council for Scientific and Industrial Research in Pretoria. The Indalo Fund is designed to change the way entrepreneurs are funded, creating a pipeline of viable businesses that will be ready to attract high-ticket investment.

According to Poovi Pillay, executive head of Nedbank’s corporate social responsibility, the Indalo Fund builds on the successful relationship between Indalo Inclusive and Nedbank, which resulted in the formation of 215 firms with an average income of R5.9 million each.

The current Indalopreneur programme covers four phases, each at its own grant level. The new Indalo Fund will come into play only in the Indaloaccel phase. In terms of the new funding principles, enterprises receive 50% of the R250 000 Indaloaccel grant at the outset if they commit to creating a minimum of five full-time jobs at the minimum wage. They will also have to reach a number of targets relating to their environmental, social and economic impact. Those enterprises that exceed their targets by 100% within 12 months are rewarded with the payment of the remaining 50% of the grant. Those that achieve only 50% above the job-creation target will receive only half of the remaining 50%.