Evolutionary Awards 2025 – Motswedi Economic Transformation Specialists: most promising new black-owned initiative

Category: Most promising new black-owned initiative

Describe your evolution:

Motswedi Incubator and Accelerator Fund Driving Real Economic Transformation the Motswedi Asset Manager ESD programme

Challenge

Since our founding in 2019, Motswedi Economic Transformation Specialists has been singularly focused on driving economic transformation in the South African financial services industry. Our apartheid legacy has left black South Africans and in particular black asset managers with low representation in the management of the R10 trillion in our financial sector. Despite policy advances, by 2019 black owned asset managers still controlled less than 8% of institutional capital, struggled to scale, and lacked the infrastructure needed to compete.

This structural concentration perpetuated

• high youth unemployment (>60%),
• extreme wealth inequality (top 10% hold 85% of assets),
• entrenched poverty (over 55% below the upper poverty line).

A Purpose Built economic transformation programme channelling ESD funding

In 2021, leveraging our deep industry expertise and relationships, we designed the Motswedi Incubator and Accelerator Fund an ESD backed asset manager support programme as a strategic lever to break this cycle.

1. Ring fenced R57 million of ESD capital (R40 million as Grants; R17 million as interest free loans) from corporate partners over four years.
2. Accelerated sixteen black owned asset managers through tailored funding tranches.
3. Embedded robust governance via our Asset Manager Acceleration Committee, with quarterly oversight, compliance checks, and delivery tracking dashboards.
4. Provided a full Acceleration Toolkit to asset managers: o Strategic business engagements with Industry Experts o Sales & distribution strategy workshops o Branding and marketing collateral via online platforms
5. Instituted a rigorous due diligence and monitoring process: 100+ data points per manager, on site reviews, KPI scorecards covering performance, job creation, SME procurement, and community uplift.

Tangible Achievements Over Five Years

• 16 black owned managers accelerated, each achieving meaningful scale.
• Multiple direct and indirect jobs sustained and created, from junior analysts to operations specialists.
• 64 finance professionals upskilled, through mentorship, strategic engagements and in house training.
• Hardware/software procured for beneficiary firms, modernising their operational capacity.

Systemic & Economic Impact

Beyond the firm level success, our programme has catalysed structural shifts:

• Institutional Confidence: Pension funds and insurers have increased allocations to black managers
• Market Access: several accelerated asset manager used seed funding to secure further corporate consulting assets
• Procurement Shift: Corporate clients have increased sight of accelerated asset managers and have indicted interest in further interactions
• Community Spillover: ESD funding triggered follow on financing of from commercial banks with a track record and credit history for small business credit.

Innovating ESD for Measurable Change

Traditional ESD often measures inputs (contracts awarded) rather than outcomes. Motswedi’s approach flips that:

• Deliverables to Clients: Validated B BBEE affidavits, audited invoices, impact reports, and “Thank You” testimonials from beneficiaries.
• Deliverables to Beneficiaries: Direct disbursement schedules, business growth targets, evidence of new hires, and community engagement logs.
• Governance: A dedicated Programme Health Monitoring framework tracks issue logs, quarterly strategy refinements, and real time feedback loops.

Why This Matters

By treating ESD as a strategic accelerator rather than a compliance checkbox, we have shown:

• Transformation = Competitive Edge: Black owned teams bring differentiated market insights that drive alpha—often in under researched sectors
• Scale = Sustainability: With sufficient AUM and operational support, these managers can invest in infrastructure and staff, reducing cost to income ratios and improving long term viability
• Ecosystem Effect: Each accelerated firm becomes a hub for skills, jobs, and subsequent SMEs—amplifying impact across value chains.

Conclusion

Motswedi’s ESD backed Manager Acceleration Programme has delivered both exceptional financial outcomes and measurable socio economic transformation. By combining R57 million of strategic ESD capital, rigorous governance, and a full toolkit of support, we have permanently shifted the landscape of South Africa’s asset management industry. We submit this entry in the Most promising new black-owned initiatives category in recognition of the programme’s systemic, scalable, and sustainable change.

Describe the impact your evolution has had in response to its identified challenges and targeted outcomes.

Identified Challenge

Black owned asset managers in South Africa faced overwhelming barriers: restrictive access to capital, lack of distribution channels, and minimal operational infrastructure. This exclusion perpetuated youth unemployment (>60%), extreme inequality (top 10% hold 85% of wealth), and persistent poverty (over 55% below the upper poverty line).

Programme Objective

To transform ESD spend into a systemic accelerator, deliberately channeling corporate ESD budgets into the growth of black owned asset managers, thereby unlocking B BBEE benefits for sponsors and tangible socio economic impact.

Key Interventions

• R57 million of ESD funding (R40 million grants; R17 million interest free loans) ring fenced over four years
• Manager Cohorts: Accelerated sixteen black owned asset managers through tailored funding tranches.
• Acceleration Toolkit: Provided a full Acceleration Toolkit to asset managers:
  • Strategic business engagements with Industry Experts
  • Sales & distribution strategy workshops
  • Branding and marketing collateral via online platforms
• Rigorous Governance: Quarterly strategy reviews, KPI dashboards, issue tracking, and committee oversight. Measured Outcomes
• Job Creation: Over 64 direct jobs created or sustained, spanning investment, operations, compliance, and admin roles.
• Skills Transfer: finance professionals trained through mentorships, rotational programmes, and in house workshops. ESD & B BBEE Benefits
• Enterprise Development: Direct support of black owned asset managers and operational uplift.
• Supplier Development: Procurement of financial services, data, and technology from black owned providers.
• Bonus Points: targeted support of intermediate Black Professionals Service Providers Systemic Shift
• Institutional Allocations: Pension funds increased black manager allocations from 1% to 4%.
• Market Inclusion: Beneficiary firms now feature on major consulting panels and approved lists.

Conclusion

Motswedi’s ESD backed Manager Acceleration Programme has transcended traditional compliance to become a blueprint for structural economic transformation. By marrying strategic ESD investment with rigorous support and governance, we have driven measurable growth, job creation, and community uplift—fulfilling both B BBEE objectives and South Africa’s urgent need for inclusive economic change.

Supporting Documentation >