The launch of Aséli Impact Capital marks a shift in how philanthropic funding is used in South Africa. Traditionally, philanthropy has been treated as a fallback for ideas that fail to attract commercial investment, leaving many viable businesses without the capital needed to scale. Aséli challenges that model by positioning philanthropy as a deliberate tool to unlock growth in sectors critical to the country’s future. Co-designed by the Anglo American Foundation, Savant and Krutham, the initiative focuses on closing the persistent funding gap facing small and medium-sized enterprises (SMEs).
South African SMEs operate in a constrained funding environment, with only about one in five successfully securing financing. This challenge is more severe in climate-tech and green economy sectors, where many businesses have proven concepts and early revenue but struggle to scale. A large portion fail to move beyond the pilot stage due to a lack of appropriate capital rather than weak fundamentals.
This gap, often referred to as the “missing middle,” affects businesses that are too advanced for grant funding but not yet suitable for traditional commercial finance. Aséli Impact Capital directly targets this segment by providing patient, flexible funding aligned with early-stage growth realities. The fund focuses on post-revenue MSMEs that have validated their solutions and are ready to expand.
Structured as a non-profit, Aséli reinvests all returns into new opportunities. This creates a compounding model where each investment supports future businesses. Typical investments range from R5 million to R40 million, aimed at enabling scale rather than early experimentation.
The model also seeks to attract additional capital from impact investors and corporate sustainability programmes. By demonstrating that these businesses can deliver both financial returns and measurable social and environmental outcomes, Aséli aims to shift how capital is deployed in the SME space.
South Africa has no shortage of viable businesses. The challenge is access to the right type of funding at the right stage. Aséli Impact Capital offers a practical approach to addressing this, positioning philanthropy as an active driver of economic growth rather than a last resort.
