The EPPF believes that social and economic stability is a key dependency for pension funds to function optimally and be able to pay benefits to members. Key to this is job creation which is a catalyst for economic growth.

South African Small Medium Enterprises (SMEs) represent most businesses and employ most of our workforce. It is in this context that the EPPF is proud to announce the launch of a debt fund designed for SMEs. The South African SME Debt Fund will be managed by Sanlam Investments, following its appointment as the external fund manager.  The debt fund seeks to help SMEs with high growth potential and stable business strategies through loans priced at a maximum interest rate of prime with an equity upside to yield a further 5% return. The loans can be repaid within a maximum period of 60 months. The EPPF committed R350 million to the investment pool while Sanlam made a co-investment of R50 million. 

“The EPPF recognises that it operates within an environment with many social challenges. We believe the EPPF has a role to play in social and economic transformation in the country. In line with the EPPF’s purpose to help prepare our members – and the South African economy at large – for a better financial future, we are pleased to launch this debt fund to assist SMEs,” explains Shafeeq Abrahams, Chief Executive and Principal Officer at the EPPF. 

The debt fund will prioritise businesses that have been in existence for at least three years and have shown signs of profitability before the COVID-19 pandemic. It will prioritise businesses in the manufacturing and agro-processing sectors, among other criteria. 

For more information about the SA SME Debt Fund, e-mail: institutional@sanlaminvestments.com