Letsema, a 100% black-owned management consulting firm at the heart of a diversified investment group, has received undisclosed funding from the Vumela Fund.
The investment will be utilised to grow Letsema, furthering its positive economic and social impact in South Africa
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Derek Thomas, CEO of Letsema Consulting & Advisory explains that the investment has brought about a partnership with the Vumela Fund and Edge Growth.
“In partnering with Edge Growth and the Vumela Fund, Letsema will be able to take advantage of very real market opportunities and scale appropriately to enable us to continue delivering real value to our partners and clients. We are grateful to the Vumela Fund for trusting us and feel privileged to be working with Edge Growth, the leading ESD fund manager in South Africa.
The Vumela funding is expected to unlock operating cash flow over the term of the investment.
This will enable Letsema to focus on organic growth and allow them the opportunity to pursue larger projects, training up young professionals whilst delivering quality engagements to its clients.
A catalyst for positive social change
Founded in 1996, Letsema provides a wide range of management consulting and advisory services to the public and private sector in the country.
Letsema’s three divisions; consulting, investments, and foundation work closely with high-impact programmes to promote positive change in their respective sectors. Letsema is a supplier to First National Bank (FNB).
The Vumela Fund was established in 2009 by FNB Business Banking and Edge Growth to help alleviate poverty in South Africa by creating jobs through supporting the growth of SMEs. FNB is committed to procuring from and supporting majority black-owned SMEs.
Vumela Fund currently has R588-million under management, from FirstRand and the Jobs Fund, and to date has deployed R280M to more than 20 early-stage businesses, creating almost 2000 permanent jobs.
Heather Lowe, SME Development Head at FNB comments on Vumela’s investment in Letsema.
“The Vumela fund continues to be an important vehicle through which FNB expresses its determination towards ensuring the sustainable growth of SMEs. With Letsema being a supplier to FNB, this deal illustrates yet again how our SME development strategy has been able to catalyse funding, market access opportunities, and business development support. We look forward to the continued growth of Letsema and its continued contributions towards job creation and economic growth.”
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Featured image: Derek Thomas, CEO of Letsema Consulting & Advisory (Supplied)
