Kasi Prime Butchery — Funding Strategy
The total startup capital requirement of R1,850,000 will be funded through a combination of founder equity and development finance. The funding structure is designed to minimise interest costs while leveraging the development finance institutions that are specifically mandated to support black-owned businesses…
Section 13 · Business Plan
Funding Strategy
The total startup capital requirement of R1,850,000 will be funded through a combination of founder equity and development finance. The funding structure is designed to minimise interest costs while leveraging the development finance institutions that are specifically mandated to support black-owned businesses…
Structured to establish the flagship store and working capital for the first phase of township expansion.
Startup Funding (Store 1)
The total startup capital requirement of R1,850,000 will be funded through a combination of founder equity and development finance. The funding structure is designed to minimise interest costs while leveraging the development finance institutions that are specifically mandated to support black-owned businesses in underserved communities.
| Source | Amount | % of Total | Terms |
| Founder’s Equity | R650,000 | 35% | Personal savings and family investment |
| SEFA Loan | R700,000 | 38% | Direct lending facility, prime + 2%, 5-year term |
| NEF/IDC Grant/Loan | R500,000 | 27% | Concessionary terms for township enterprise |
| TOTAL | R1,850,000 | 100% | — |
Available Funding Sources
provides direct lending and credit guarantees to qualifying small
businesses. Township retail businesses with strong business plans and
demonstrated market demand are well within SEFA’s mandate. Loan amounts
of R50,000 to R5 million are available.
Fund provides equity and loan financing to black-owned businesses. The
fund specifically targets businesses in underserved communities and can
provide up to R75 million in larger stages of growth.
offers financing for agro-processing and food retail businesses, with
particular emphasis on job creation in previously disadvantaged
areas.
Township and Rural Entrepreneurship Programme (TREP) provides both grant
funding and business development support for township enterprises.
Expansion Funding (Stores 2–5)
Expansion will be funded primarily through retained earnings supplemented by commercial bank loans. By the time Store 2 opens in Year 3, Store 1 will have generated sufficient retained earnings to fund approximately 40–50% of the R1,600,000 required per store. The balance will come from a commercial bank facility secured against the operating business and its assets. As the chain grows, the business becomes increasingly bankable, enabling access to larger facilities at better rates.
| Store | Retained Earnings | Debt Finance | Total Investment |
| Store 2 (Year 3) | R700,000 | R900,000 | R1,600,000 |
| Store 3 (Year 4) | R800,000 | R800,000 | R1,600,000 |
| Store 4 (Year 4) | R600,000 | R1,000,000 | R1,600,000 |
| Store 5 (Year 5) | R900,000 | R700,000 | R1,600,000 |
| TOTAL (Stores 2–5) | R3,000,000 | R3,400,000 | R6,400,000 |
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