Edge Growth is pleased to announce that the Edge Action Fund has awarded a debt loan investment to Engen Belfast, a wholly black-women-owned company that is bringing jobs and income to the small town of Belfast in Mpumalanga.
“The investment in Engen Belfast 1 Stop was a landmark investment for the Edge Action Fund and The Engen Convoy Fund. This investment shows our commitment to giving black-owned businesses a fighting chance in the market by backing their potential with funding support,” says Mooketsi Diseko, Edge Growth lead deal maker.
Nosiphiwo Ligwa, Gugu Ngcongo and Sibongile Dube are the new partners in Engen Belfast 1 Stop, a petrol forecourt along the N4 highway between Gauteng and Mbombela. The filling station has a Truck Stop, Wimpy, Corner Bakery and convenience store.
In 2011 Ms Ligwa and Ms Ngcongo started Siphigugu Trading 96 (Pty) Ltd for the purposes of investing in and running a filling station, the fulfilment of a long-held dream. Their opportunity finally came in 2013 when Engen Prakmat was put on the market. The ladies took a huge step and quit their secure corporate jobs, securing the purchase using their own pensions and the help of an investment partner.
Using their theoretical knowledge on the management of a forecourt and Engen’s systems from their tenure as employees in the petroleum corporate, they quickly grasped the skills needed to turn their knowledge into successful service station management. Tackling each challenge with grit and the sheer will to win, they turned the business around and carved a place for themselves in the Stanger community in KwaZulu Natal.
In 2018 the entrepreneurs got wind of an Engen 1 Stop site for sale in Belfast and decided to pursue the opportunity to run one of Engen’s key retail sites along the N4 highway. Having paid the last instalment to their founding loan for the Prakmat site in December 2018, they were in a favourable position to add a second Engen forecourt to their portfolio.
They approached Edge Growth for a loan in 2019. As model candidates for ESD support from the Engen Convoy Fund, the deal achieves key strategic transformation objectives of Engen and is second to none as a brilliant case study for true support through the Convoy Fund.
“The fact that the site funded is an Engen 1 Stop makes it all the more special as this shows commitment to achieve transformation goals, even on large sites, which are mostly undiversified when it comes to ownership. The entrepreneurial skill of the partners – who have over 15 years of industry-related experience – is unquestionable. The filling station is running successfully on a great location with ample growth potential,” says Diseko.
The new filling station has 92 employees whose jobs will be sustained through the loan. Staff come from the surrounding disadvantaged communities and Edge Growth anticipates an increase in job creation with future growth of the site.
The Edge Growth Action Fund is proud to back this 100% black women-owned business, which has already improved on fuel sales figures and shop revenues. Engen Belfast 1 Stop is on the map when it comes to economic growth.
The Edge Action Fund was established in 2011 and is Edge Growth’s in-house enterprise and supplier development fund, providing effective ESD solutions, maximizing socio-economic impact through responsible investment and ensuring B-BBEE code compliance. Our funding is tailored to individual entrepreneurs and comes with support mechanisms, such as specialised mentorship and access to markets through corporate supply chains, propelling entrepreneurs to next level growth and scalability.
Edge Growth is a leading SME and Venture Fund Manager, specialising in developing small businesses and creating jobs and real transformation by connecting corporates and entrepreneurs, growing SMEs by addressing their key constraints: Access to finance, markets and skills. Our offering consists of three services areas, designed to achieve maximum IMPACT:
ESD Strategy for corporates & building SMEs in their value chain
Investing in and growing SMEs through fund management
Scaling businesses to full potential through accelerator programmes
If you would like more information, please contact Linda Erasmus at +27 10 001 3715 or email at lerasmus@edgegrowth.com.
