New Secha Capital fund looks to close SA’s SME growth gap
The fund, Secha Capital Impact Fund II, is aimed at scaling small and medium-sized businesses in South Africa’s real economy, with a focus on sectors such as agriculture, manufacturing, energy and consumer goods.
Beyond capital, the model centres on embedding operational talent directly into portfolio companies. Through its operator-investor approach, Secha places professionals within businesses to support execution across sales, operations and strategy, addressing what it identifies as a key constraint to growth.
The model has been expanded to include a chief executive operator-Investor track, designed to transition experienced professionals into leadership roles within portfolio companies.
According to Secha Capital, the fund is already 40% deployed across eight businesses spanning manufacturing, energy technology, agriculture and consumer sectors. These include companies involved in electronics manufacturing, energy optimisation, controlled-environment farming and supply chain technology.
The portfolio has collectively created more than 1,000 jobs to date, reflecting the fund’s focus on employment and operational scaling rather than early-stage venture funding.
E Squared Investments said the partnership aligns with its focus on supporting businesses that can contribute to job creation and economic development, particularly in a constrained operating environment for SMEs.
The fund’s approach reflects a broader shift in investment strategies targeting small businesses, where access to capital alone is increasingly seen as insufficient without the operational capacity to execute growth.
Secha Capital is targeting a final close of around R650m for the fund by July 2026.