Short Story

Government spends just over R600 Billion a year to procure services from businesses and enact its mandate. It is the biggest buyer of anything in South Africa. In line with understanding its power, it has made a conscious effort to try stimulate the growth of small businesses, by committing 30% of its total spend to small businesses. This means a total of R200 Billion of its spending is earmarked for emergent small businesses. 

The problem with this though, is that most small businesses do not have the capital to execute on the jobs and then receive payments 7 to 60 days after completing the job. This is a major contributing factor to delays in service delivery for the citizens of the country. 

Entrepreneurs who do get these contracts are forced to give up to 25% of the contract away to shark businesses that are their only option for financing.

On one side, how do you make the workings of government efficient and at the same time allow them to play a critical role in the development of small businesses?

We feel this is where a people owned funding mechanism comes in. You contribute to this campaign, we then use the proceeds to pay for the needs of entrepreneurs who have contracts with government (& the private sector) and they then pay us 6% of the value of their purchase orders once they receive their payment.

e.g. Tshepo just received a contract with Mpumalanga government to deliver 20000 pencils for R20 000.

The cost to manufacture these for him is R10 000. We, as the people, extend him this R10 000 and he agrees to pay us this back as well as 6% of the invoice value (R20 000 * 6% = R1200). He takes 3 weeks to manufacture & deliver these pencils. Mpumalanga agrees to pay him 30 days from Statement (or after delivery) so he pays us back R11 200 almost 60 days from the time we advanced the capital. He now has R8 800 in profit. He can now use this to finance his next purchase himself or he can come back to us for more funding. The ultimate objective is to allow entrepreneurs to become self reliant and to allow them to grow their businesses by worrying less about cash flow (and exhorbitant finance costs) to execute on projects.

We have validated this model with hundreds of businesses over the last 3 years and we are continuously looking for ways to expand help even more entrepreneurs each day.


  1. You contribute to this campaign (minimum R100; Maximum R100 000).
  2. 10% of your contribution is deducted from the fund to cover administrative costs.
  3. You will be required to send us your FICA documents (ID copy, proof of address, banking details) as we are a FICA accountable institution.
  4. At the end of each month, your money is put to work as described in the example. We expect it to do about 6 purchase orders with your money in a year (from disbursement to entrepreneur; to receiving payment back takes 45 days to 60 days on average).
  5. At the end of 12 months from the time you contributed, we then pay you back your original capital as well as a return based on the fund’s performance over the past 12 months. On six purchase orders per year we expect this to be anywhere from 110% to 124%. Put another way, at the end of 12 months we expect to pay you around R110 to R124 for every R100 you put in today. We will communicate with you how the fund has performed against the target. Payouts are prepared at the end of the month you invested and paid out shortly after.
  6. The entire payment process will be managed by The People’s Fund and Audited by SnB Chartered Accountants & Auditors ( Practice Number 966205)


NB!! First & foremost, we need to declare that this does not constitute financial advise in anyway and that we have made our projections based on historical yields. Investing in a fund where we will be funding small businesses is risky and you should only commit money you are willing to lose.

We have made a table of returns to show what your payback would look like after 12 months depending on the return achieved.

 Contribution payback after 12 months Return
 R  100,00  R  110,00 10%
 R  100,00  R  112,00 12%
 R  100,00  R  116,00 16%
 R  100,00  R  124,00 24%
 R  1000,00  R  1160,00 16%

NB: There is a handling fee associated with the payment gateway you choose to use.

Direct Bank Transfer 0%

i-Pay Instant EFT 3%

The crowdfunding campaign is currently paused. We are only accepting private investors at the moment (investments above R100,000.00). The returns structure is slightly different for private investors and we do not have a fixed period.

Fill out the form below and if you would like to invest and we will get back to you as soon as the crowdfunding campaign is back up. For amounts from R100,000.00 and above, we’ll get in touch as soon as we receive your details.

Purchase Order & Contract Financing

by The People's Fund

  • R10,000,000.00

    Funding Goal
  • R4,541,840.21

    Funds Raised
  • 0

    Days to go
  • Target Date

    Campaign End Method
Raised Percent :
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, South Africa

The People's Fund

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