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uNotho Holdings, a South African mining services company, has received about $212,000 in growth debt financing from the Ignite Fund, managed by Edge Growth. The money lets the company deliver on a contract it had already won with Seriti Power.
Access to finance is a common problem for small suppliers in the mining sector. According to the International Finance Corporation (IFC), only about 5% of formal South African SMEs have access to credit.
The 2018 Mining Charter sets a target of 80% of eligible mining services spending going to South African companies, including 15% to women-owned businesses.
The funding provided meaningful support in enabling us to execute the supply and delivery of two waste trucks for Seriti Power, and we appreciate the role Edge Growth played in making the transaction possible,” says Makhosi Khoza, Founder and Managing Director, uNotho Holdings.
Led by Makhosi Khoza, uNotho offers waste management, bulk hauling, commodity transport and machinery rental to the construction, mining and industrial sectors. Khoza is a chemist with more than ten years of experience in mining. Founded in 2018, uNotho is Level 1 BBBEE-certified and operates branches in Richards Bay, North West, and Mpumalanga.
The company aims to expand its national presence within the construction and mining industries, promote sustainable practices in waste management and transportation, and achieve certification as a recognised waste treatment service provider.
The company complies with several regulations, including the International Standard of Environmental Management (ISO 14001) and the National Environmental Management Waste Act (Act 59 of 2008).
“From the outset, the process was transparent, professional and well managed. Although the transaction was quite demanding from a coordination and execution perspective, the Edge Growth team remained professional, responsive and solution-oriented throughout,” said Makhosi Khoza.
The Ignite Fund, established in 2023, is a new fund within the Edge Growth portfolio. Supported by companies like Seriti Holdings, it provides early-stage funding and development assistance to small and medium enterprises (SMEs) that don’t meet traditional funding criteria.
Edge Growth has been investing in small businesses for 17 years and managed over $148 million at the end of its last financial year.
“This transaction was unique as it required co-funding with other lenders, given the mandate limit of R3.5 million. The process presented several challenges and valuable learning opportunities, making the successful disbursement all the more rewarding,”said Khanye Nene, Deal Maker, Edge Growth.
Edge Growth supported uNotho because of its strong leadership and successful history. The funding helped buy two waste trucks for Seriti Power, with other lenders joining in due to a R3.5 million limit on the Ignite Fund. uNotho plans to use this investment to increase its capacity, foster growth in the mining sector, and create jobs.
The investment comes a couple of months after Edge Growth launched the Edge Impact Fund (EIF), a catalytic debt fund designed to provide flexible financing to established, technology-enabled businesses across South Africa and select African markets.
“At Seriti, we recognise the importance of developing sustainable local businesses and enabling capable entrepreneurs access to the funding and support they need to deliver on those opportunities. uNotho Holdings represents the exact type of enterprise we want to see growing within the mining sector,” said Nyaniso Rapiya, Inclusive Procurement and ESD Manager, Seriti.
Seriti Resources is a majority black-owned South African energy company involved in both coal and renewable energy.
The company aims to play a significant role in the country’s energy sector by supplying coal to domestic power stations and export markets, while also working on renewable projects through Seriti Green. This includes the development of large-scale wind, solar, and battery energy projects.
