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Services2018-10-24T17:34:41+00:00

You can access our 60 years combined experience in the following ways

Capital Raising and Value Adding Services

Expansion Project Capital Raising

Uzenzele generates value for its clients through advisory and capital raising services for expanding manufacturing and related business by appropriately analysing your funding options and translating your operating business into a document which can be well understood by financial institutions – a bankable plan.

Uzenzele looks at structured finance solutions combining traditional sources of finance through debt and equity with non-traditional sources such as grants and incentives.

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A Trusted Advisor

Becoming Bankable

Business and financial modelling, planning

At Uzenzele, we believe that every plan must have a result and support the business growth. Our business plans are built for each client and are developed for particular financiers suited to your businesses needs.

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Becoming Bankable

Debt & Equity finance

Uzenzele works with a wide network of specialist bankers and dealmakers to make your capital raise a reality.

Debt is sourced from commercial, non-traditional financiers and development finance institutions from the appropriate financier who has appetite to finance your growth.

Equity is sourced through Uzenzele’s relationships with High Networth Individuals, venture capitalists, institutional private equity investors and commercial financiers with appetite to take on equity to help you raise the necessary debt for your growth.

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Trusted Advisor

Becoming Bankable

Fund Your Business – Entrepreneur Magazine (Aug 2016)

The South African government has a range of cash and tax incentives through various departments and institutions which Uzenzele assists its clients to prepare applications for and facilitate the process to claim or drawdown.

During 2016/17 a total of 1 549 enterprises were approved across all the Incentive Development and Administration Division (IDAD) incentives at the Department of Trade and Industry (DTI), totalling an amount of R12.8 billion and attracting an estimated R39.4 billion. This excludes cash and tax incentives through other institutions such as SARS, The IDC and various others.

These incentives and grants are by nature long term strategic financial solutions and are not for short term cash flow requirements. Incentives and grants incentivise growing businesses to grown faster and more sustainably and require that the business is able to match funding between 10% to 80% with that of the granting institution.

The allocation of these funds are to businesses that are able to show viability in their growth and bankability – whilst they are for both startups and expansion phased businesses, startups must show the probability of the return on the investment i.e. economic activity, job creation and tax incomes, for the investment of the relevant institutions fiscal budget into your business.

 

Uzenzele focuses on a set core of incentives through the various institutions including but not limited to;

Black Industrialist Scheme

Black Industrialists are eligible for up to R50million in grant funding on a cost sharing basis with the DTI. This fund is available to majority owned and managed black manufacturers.

 

Agro Processing Support Scheme

APSS provides up to R20mil in grant funding on a cost sharing basis to eligible agro-processors. Agro-processing refers to the value added post harvest of agricultural raw material. This fund is not applicable to the growing of the raw crop or animal.

 

Uzenzele’s Export Trade Show Funding service

Provision of an annual administration service to manufacturers and traders of SA produce to apply to the Export Marketing and Investment Assistance Scheme with the DTI providing up to 6 opportunities to promote and exhibit in foreign markets.

 

Green Tourism Incentive Programme

Up to R1mil granted on a cost sharing basis for tourism related business to “Go-Green”, businesses turnover must not exceed R45mil per annum to qualify.

 

Critical Infrastructure Programme

An incentive of up to R50mil in grant funding on a cost sharing basis for large scale local infrastructure projects in water & energy alleviation, rail, road, bridges, bulk water etc.

 

Strategic Partnership Programme

A cost sharing incentive for corporates to support their supplier development initiatives of up to R45-million with applicants required to have proven revenue of R100mil per annum for at least 2 consecutive years.

 

Capital Projects Feasibility Programme

We support early stage (post pre-feasibility) projects outside of South Africa access the Capital Projects Feasibility Programme incentive through the DTI which provides up to R8mil is cash rebates for feasibility studies on large capital intensive projects where South African goods and services will be utilise in the bankable feasibility and implementation stages.

 

. Innovation – Research and Development

Innovation, Research and Development is funding through various cash and tax incentives with a bias to financing innovation in industry vs. information technology.

Most innovation projects are finances post a proof of concept.

 

 

 

 

. Infrastructure finance

Uzenzele promotes the sourcing of capital for large scale infrastructure projects in South Africa, Angola, Mozambique, Tanzania, DRC, Kenya and Uganda through its large network of local and international technical and financial partners.

Uzenzele specifically looks at financing post Bankable Feasible Study Phase with project sizes in excess of $10million.

 

. Africa Focus

Uzenzele provides access to development finance for growth, expansion and exit opportunities for well established and profitable businesses in 6 African territories allowing international players to partner with strong local partners in their pursuit to participate in the growth of the African continent.

Countries of interest:

  • Angola,
  • Mozambique,
  • Tanzania,
  • DRC,
  • Kenya,

1.7.1. Feasibility study finance

We support early stage (post pre-feasibility) projects outside of South AFrica access the Capital Projects Feasibility Program incentive through the DTI which provides up to R8mil is cash rebates for feasibility studies on large capital intensive projects where South African goods and services will be utilise in the bankable feasibility and implementation stages.

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1.7.2. Mergers and Acquisitions

Local Africans have build well established, profitable businesses over decades and even over generations.

These family style businesses are looking at their next growth path and are looking for financial and technical skill to go to the next phase.

Uzenzele matches these businesses with relevant international funders and technical skills through its networks.

Supplier Development Programmes and capitalisation of SMEs

Uzenzele provides an outsourced “Access to Finance” arm to supplier development & localisation programmes and incubators by:

  • Educating procurement professionals on financial options and requirements to effectively identify strategic SD commodity line items and/or suppliers that will be bankable
  • Capacitating SD & localization programs to bridge the SME funding gap through
    • Rigorous eligibility and matching processes,
    • Development of bankability documentation,
    • Management of the capital raising process.
    • Facilitation between financiers and SMEs until draw-down of funds
  • Applying for the Strategic Partnership Programme at the DTI and with the Jobs Fund at the DBSA, for funding to support relevant corporate ESD programmes.

 

 

 

 

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Value Added services

 

UH has partnered with well established partner firms to provide value added services in the capital raising application process including:

1.9.1. Compliance

In our experience one of the single hurdles to fundraising is compliance and therefore searched for a nationally represented expert to assist our clients.

Our compliance partners have a professional and qualified team who enable you to focus on your core business by assisting you to make sense of the country’s stringent laws, and ensure that your business policies and practices are aligned accordingly to allow you to access economic opportunities and expand your business sustainably.

These services include:

  1. BEE Advisory & implementation Services

Our partners provide specialist structuring advice to ensure legal and tax compliance for transforming or transformed businesses.

We have found that even 100% Black Owned businesses are not fully compliant which can jeopardise their ability to raise development finance.

We work closely with our compliance partner to provide a holistic solution for BEE transactions including financing of the transaction where possible.

  1. Labour relations

When raising finance, many financial institutions look at the labour compliance of the business seeking finance. Our partners guide and assist businesses in a practical and supportive way with regard to the required processes and procedures to ensure labour legislation compliance and to minimise the risk to which the business is exposed when employing staff.

The experienced labour relations consultants deal comprehensively on your behalf with the relevant labour legislation and most common pitfalls that businesses encounter.

With the new national minimum wage envisaged by our government, businesses will have to ensure that employment policies and procedures are sound as some employees and unions might see this as an opportunity to exploit the situation. Employers that fail to comply with the necessary legislation risk getting caught up in unnecessary legal action and disputes.

  1. PAIA & POPI Act

Access to information and the protection of certain types of information in South Africa are mainly regulated by the Promotion of Access to Information Act (PAIA) and the Protection of Personal Information Act (POPI).

  1. Corporate Governance & Business Administration

With the introduction of the new Companies Act for public companies it basically means that there are more stringent requirements regarding accountability and transparency and that businesses are impacted in different ways.

The Act encourages enhanced standards of corporate governance whereby minimum accounting standards have been set for company annual reports, with firmer provisions governing directors’ conduct and liability.

1.9.2 Energy efficiency

The growth of any industrial business includes higher electricity consumption eroding profitability – with the concerns of electricity price increases, managing this risk is important to any sound financial plan.

In line with our mission to providing a comprehensive solution to capital raising, in 2016 Uzenzele partnered with the leading EPC in South Africa for solar PV installations with over 30 MWp of commissioned, providing complete turnkey solutions with tier 1 equipment and 5 year workmanship guarantees.

1.9.3. Treasury Functions

Adding value to our clients by providing a best practice corporate treasury service and to help them manage the effect that exchange and interest rates have on their business.

Uzenzele has partnered with an experienced and knowledgeable team of treasury specialists whose aim it is to thoroughly understand the financial risk within the framework of the client’s business model and the effect of FOREX on the business’ capital raising and expansion project implementation.

  • Obtains competitive exchange rates through our collective bargaining power and dedicated specialist dealing expertise;
  • Is independent and objective advice and transacting will be ensured as there is neither conflict of interest nor allegiance to any financial institution – we work with all banks;
  • Provides tailor-made hedging strategies that focus on the client’s treasury risks; and
  • Provides clients with Exposure / Transaction / Cash flow Reports as and when required to assist with the monitoring and decision making required in the management of your risks.

1.9.4 Recruitment and Human Resource services

A major component of any bankable business is the strength of the team. Uzenzele has identified key areas of human resource planning and recruitment as a challenge for many SMEs looking to grow and expand.

Our partners provide solutions in:

Human Resource strategy consulting

Human capital roadmap planning

Learnerships and Training

Recruitment and Headhunting

U.Intel Services

Uzenzele Intelligence (U.Intel) was established to provide consulting and training services to address the need for specialist interventions, an outsourced function for access to finance in the supplier development ecosystem and the education of the role-players in the ecosystem (SMEs, financial institutions, business development practioners and procurement), to address the lack of access to capital to SMEs within public and private supply chains.

U.Intel provides market intelligence services to the public and private sector including;

Market due diligence

Feasibility studies and reports

Sector-based research

U.Intel provides financial intelligence services to the public and private sector including;

Financial due diligence

Financial modelling

Valuations

Business valuations

Property and tangible assets

Intellectual property and tech assets

93% of SMEs don’t know where or how to access finance, this puts procurement and SCM at risk with many local SME contracts being unfulfilled. Furthermore, many SMEs lack the equity contributions and security needed for capital to be raised.

Education of the role-players in the ecosystem (SMEs, financial institution’s, business development practioners and procurement) is critical to address the lack of access to capital for SMEs within public and private supply chains.

Procurement and SCM

With the emphasis on supplier development in public and private supply chains, a better understanding of the SMEs capital raising landscape and requirements is necessary to ensure a structured solution.

U.Intel’s training will unpack incentives (grants), development finance, venture capital and private equity mandate examples to assist procurement in their supplier development and localisation requirements ensuring capitalisation and quality supply.

Who should attend:

  • Procurement executives
  • Commodity buyers
  • Supplier development executives
  • Business development executives

2.3.2. Financial Institutions and Financiers

Many SMEs lack the equity contributions and security needed for transactions to conclude and convert at credit committee and these SMEs look to financial institutions for answers on how to bridge the gap.

Most dealmakers have a limited understanding of the instruments and mechanisms available to provide a blended financial structure for SME transactions.

U.Intels training will unpack incentives (grants), development finance, venture capital and private equity mandate examples to assist dealmakers help their clients increase bankability and farm prospective clients for larger ticket sizes.

Who should attend:

  • Dealmakers
  • Investment bankers
  • Credit committee members
  • Investment committee members
  • Marketing & business development executives
  • Family office investment executives

2.3.3. SME Bankability Training and Coaching

 

Whilst our bankable training programmes will provide SMEs the fundamentals on bankability requirements and where to access finance for their type and stage of business, depending on the maturity of the business, its team dynamics and their capital raising ambitions, coaching over a short or long period of time assists SMEs to be accountable to an action plan of becoming investment ready and bankable.

This is often a longer process (3 to 24 months). Without regular accountability and guidance, SMEs who could be financed and scaled often are unable to secure finance and fail.

Bankability must be built into a business. Our coaches and business mentors focus SMEs in this journey.

 

Who should attend:

  • SME executives from pre-commercialisation to advances businesses
  • Financial executives
  • Incubator managers
  • Coaches
  • Accountants and business advisors