Debswana, Namdeb and De Beers Consolidated Mines (DBCM) operate investment funds in Botswana, Namibia and South Africa.
These funds facilitate enterprise development, employment, economic diversification and alternative livelihoods that last post-mining.
Each of the funds is operated as a separate business with its own corporate governance structures. They also submit accounts and annual reports on performance to their respective shareholders.
In addition to investing capital, the funds provide the companies they invest in with advice and mentoring. This includes skills development relating to project and personnel management, finance techniques and business procedures.
The provision of skills development is vital to avoid the high failure rate typically associated with small businesses. It has helped build a portfolio of investments in line with international norms of small and medium business sustainability.
Peo Venture Capital
Peo (“seed”) is a 50/50 joint venture between Debswana and De Beers Botswana. It was founded in 1997 to support the development of citizen owned businesses.
The mission of Peo is directly aligned with the national development strategy of citizen empowerment, sustainable development and skills transfer. Financial assistance for new and existing businesses is provided in the form of debt (loan) and equity finance, with Peo taking a maximum stake of 49% in each new business.
Since its inception, Peo has assisted in the establishment of 58 businesses and has invested a total of P32.6 million (US$5.3 million). It has created employment for many hundreds of Batswana. About 80% of businesses in the Peo portfolio are profitable.
Peo funds businesses in all sectors based on their commercial viability, management ability, business risk and contribution to national development goals. About 10% of applications are successful.
Oshipe Development Fund
Oshipe Development Fund (Oshipe) is a wholly owned subsidiary of Namdeb. Its mission is to promote and facilitate sustainable business development and growth of small and medium-sized enterprises through the provision of financial assistance and business support.
Preference is given to SMEs owned partly or wholly by previously disadvantaged Namibians. Oshipe screens investment opportunities based on commercial and technical viability, growth potential and opportunities for inclusion within the Namdeb supply chain.
Oshipe occupies a shareholding of between 26-49% in the invested company and is represented on the Board throughout its investment.
Oshipe ends its involvement when the business is self-sustainable, adequate skills transfer has taken place and managers have proven they are capable of operating the business independently of external support. This ideally takes place within five years.