Barry Streek
An offer to NGOs for shares in an unlisted investment company has been oversubscribed before it was formally launched.
It was initially intended to raise R1- million for the Ditikeni Investment Company, which is aimed at helping the NGOs to achieve a measure of financial sustainability, but commitments of more than R1-million have already been made and the offer will be extended.
It is hoped the offer will be formally opened on September 1 this year and it will close at the end of December.
Ditikeni is a Tshivenda word meaning “sustainability”, or literally, “something to lean on”.
NGOs at a meeting on February 15 this year gave a mandate to a steering committee of 11 representatives to pursue the idea.
The participating NGOs are now finalising a prospectus for the new company, which will hopefully be registered by the end of August.
Each NGO may only invest a maximum of R100 000 for itself, but it can invest another R100 000 on behalf of its affilliates.
The company’s first board of directors will be announced when the prospectus is registered and the share offer is opened, but company secretary Dasi Moodley said it will have NGO representatives as well as members from the financial sector.
Ditikeni will be an investment holding company which will seek long-term holding investments in companies showing evidence of social responsibility.
The NGOs have agreed on guidelines to ensure that the company’s investments reflect the values of the NGO community.
African Harvest Capital, a subsidiary of the listed African Harvest, has been appointed to manage Ditikeni on a success fee basis and will appoint one director to its board.
The NGOs represented on the board are the Community Research and Planning Organisations, the Association for Rural Advancement, the Centre for the Study of Violence and Reconciliation, the Labour Education Research Information Service, the Social Change Assistance Trust, the Trust for Christian Outreach and Education and the Workers Education Project.
An additional 18 NGOs have made commitments to Ditikeni.
The Dutch funding agency Inter-Church Organisation for Development Co-ordination facilitated the establishment of the company, but will not be directly involved in Ditikeni’s operations.