REWRITING THE ECONOMIC REALITY OF SOUTH AFRICA’S AT RISK COMMUNITIES
The Caban Community Investment Company (CIC) concept stems from the very real and urgent need to create opportunities for those who, most often due to situations that they cannot control, are not able to follow through with their dreams of being an entrepreneur who in turn create job opportunities.
Over the past two years we have attracted a number of suitable partners. StrandHanson have partnered with us with the Atlantis Dream Team and Qei Holdings, a partnership we are now strengthening.
At present we already have three CIC’s registered as special purpose vehicles:
Qinisanani Investments in Khayelitsha;
Qei Holdings in Atlantis in the Western Cape and;
Mgcawu Holdings in Upington in the Northern Cape.
This business model is not a CSI programme, rather we believe in creating sustainable solutions for communities utilising proper business principles. The creation of a CIC facilitates this process. It works as follows:
A public unlisted company is formed. Shares in this are held by Caban Investments, local public benefit organisations, investors and the broader community;
Caban Investments provide all the services required to get the company operational
A community engagement process is undertaken where Caban works closely with the local community leadership structures to create a shortlist of potential entrepreneurs and select those suitable for incubation;
The capital raising then begins through which the public unlisted company acquires shares in local business utilising the Caban Entrepreneurship Programme model;
The services to the incubated businesses are provided by local entrepreneurs who themselves join the incubation programme. Caban Investments mentors these entrepreneurs with a view to them being able to fully manage the secondary intake of the incubator.
The company is formed with a clear mandate to assist a particular community or focus group and the public benefit organisations selected as shareholders are high impact organisations that have a direct upliftment mandate for a particular community. Through the profits of this vehicle, public benefit organisations become self-sustainable, new business are created and funded and communities are uplifted.
Due to the similar requirements of all the Caban Community Investment Companies, it was decided to form Caban CIC (Pty) Ltd as the controlling company. Through Caban CIC the objectives of all three special purpose vehicles and future development is this category will be developed.