Umthombo Springs Business Plan — Transformation & Community

62% at incorporation; protected through both funding rounds by anti-dilution provisions on the community trust

Transformation & Community

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Element	Commitment
Black ownership	62% at incorporation; protected through both funding rounds by anti-dilution provisions on the community trust
Community trust	Nkanyezi Community Trust holds 14% at incorporation on behalf of catchment communities, vendor-financed and repaid from distributions
Employment	68 permanent positions at Year 5, recruited with priority from the Underberg and Himeville district
Skills	Operator, laboratory and maintenance training programmes; two artisan apprenticeships per annum from Year 3
Local procurement	Catchment management, transport, security and services contracted locally where capacity exists
Community benefit	Trust distributions directed to education, water access and enterprise support in the catchment communities

Figure 10. Organisation at Year 5 — 68 permanent positions.

NoteThe community trust's economics deserve to be stated plainly to its beneficiaries

The trust holds 14% on vendor-financed terms, repaid from distributions. Two consequences follow that should be communicated rather than left implicit. First, distributions: the Company is loss-making through Year 3 and is a growth business thereafter, so meaningful cash distributions are unlikely within the plan horizon and the vendor financing will not be repaid from them in that period. Second, dilution: absent the promised anti-dilution funding, the trust’s stake falls from 14% to roughly 4.3% through the two rounds. Section 16 quantifies what protecting it actually costs. The commitment is genuine and the structure is standard, but trustees should understand both the timing and the mechanism.