A strategic investment in Custom Capital Finance (CCF) has been announced by Summit Africa, a leading black-owned and managed impact investment manager backed by 27four, which marks a significant milestone in advancing financial inclusion and supporting small, medium, and micro-sized enterprises (SMMEs) across South Africa.
The investment, finalised in December 2022, grants Summit Africa a 51% shareholding in CCF, positioning the company for accelerated growth and expanded impact. Through this partnership, CCF gains access to increased debt finance via a R2 billion RMB Notes Program, enabling the company to extend its innovative financial solutions to a broader base of SMMEs over the next five years. This infusion of capital addresses the persistent challenge of limited access to finance for SMMEs, a critical barrier to economic growth and job creation in the region.
Summit Africa’s involvement extends beyond capital, providing CCF with strategic expertise in areas such as software and systems development, product innovation, and governance. The Summit Value Add team is actively assisting Custom Capital Finance in implementing robust risk management and governance frameworks aligned with international standards, including the IFC performance standards and King IV Combined Assurance.
The impact of this investment is far-reaching. CCF’s projected growth is expected to directly create 10-15 new jobs, with the potential to indirectly generate nearly 3,900 additional jobs through the SMMEs it supports. Furthermore, the partnership has transformed CCF’s ownership structure, making it 51% black-owned and significantly enhancing diversity and inclusion within its workforce and board.
This collaboration underscores Summit Africa’s commitment to fostering economic transformation, job creation, and inclusive growth, reinforcing its role as a catalyst for sustainable development in South Africa’s financial sector.
For more information about Summit Africa or Custom Capital Finance, please contact Media Relations Summit Africa using info@summitafrica.co.za or read here.