Mergence invests in local business

MATHATISI SEBUSI

MASERU – Basotho businesses in the agriculture, technology, property, infrastructure, renewable energy and education sectors stand to gain funding amounting to a minimum of M25 million and a maximum of M60 million per project.

This comes after Mergence Capital Lesotho announced investment in Basotho owned companies that are able to provide desired financial returns for its investors, have reasonable and positive social impact and are also able to manage undesirable levels of risk.

Mergence Lesotho Managing Director, Semoli Mokhanoi, has noted that businesses in other sectors will also be considered for funding provided they meet the set criteria.

He said Basotho businesses that are interested in getting funding should submit suitable bankable business ideas that can be considered for funding that ranges between M25 million to M60 million, adding that they anticipate to grow their Lesotho investment to M1 billion within five years.

“Our preferred investment size is a minimum of M25 million and a maximum of M60 million per project. We could however consider proposals outside of these parameters if we see relevant potential.

With the strong pipeline that we have in Lesotho, we anticipate that we will be able to grow our Lesotho investments to M1 billion over the next three to five years.

In order to achieve our goal, we invite Basotho-owned companies to share with us bankable business ideas that we can consider for funding. Businesses that we could consider should be able to provide desired financial returns for our investors, have a reasonable and positive social impact and also be able to manage undesirable levels of risk,” Mokhanoi said.

He noted that their primary focus is in the agriculture, technology, property, infrastructure, renewable energy and education sectors, also pointing out that investment in other sectors will considered based on the commercial and social impact merits.

Mergence Investment Managers Lesotho (Pty) was licensed to operate as an investment manager in Lesotho a year ago. In 2015, the company was appointed as the private equity manager for the Pubic Officers Defined Contribution Pension Fund (PODCPF).

Mokhanoi said to date, they have successfully deployed in M320 millions of investment in Lesotho, have created more than 2 300 jobs and impacted the lives of Basotho. He said this has made a further positive contribution to the economy in terms of revenue collections, attracting investors in Lesotho, participating in the creation of new industries.

He said as an impact investor, Mergence has pioneered in many areas before including in South Africa to create a debt fund in the renewable energy sector and are the first fund manager to invest in medical cannabis.