The Automotive Industry Transformation Fund (AITF) has approved a R20m blended funding transaction to support the expansion of Fumani Holdings into an OEM-approved dealership for Isuzu Motors South Africa.
The funding package is structured across five targeted facilities addressing immediate and long-term needs, covering:
- vehicle inventory;
- working capital;
- workshop tools and machinery;
- premises; and
- establishment costs.
This blended approach ensures the adequate capitalisation while preserving ownership control.
The transaction marks a significant milestone in advancing transformation within South Africa’s automotive retail sector, enabling a 100% black-owned and youth-owned business to enter the formal dealership network.
Structured as a debt-funded blended facility with no equity dilution, the funding is designed to support the establishment and operationalisation of a new Isuzu Fumani dealership in Westonaria, Gauteng.
Founded in 2011, Fumani Holdings leadership and founders are Sechaba Sephiri and Bafana Mathebula. The Westonaria dealership, acquired from My Ride Motors, was non-operational at the time of purchase, with no goodwill or stock value. Funding will therefore be directed towards recapitalisation, inventory acquisition and operational readiness.
Isuzu Motors South Africa (IMSAf) has formally licensed and championed Fumani to operate the dealership.
“We are excited about the opportunity to grow, create jobs and contribute meaningfully to the automotive sector,” said Alastair Hodgson, department executive for dealer development at IMSAf.
Commenting on the transaction, Tshepo Rapudi, AITF’s chief investment officer, said the deal reflects the fund’s core mandate of enabling meaningful participation in the automotive sector.
“By supporting Fumani Holdings’ transition into an OEM-approved dealership, we are not only enabling sustainable enterprise growth, but also advancing transformation where it matters most — at ownership and market access level,” added Rapudi.
Sechaba Sephiri, the founder and MD who is a seasoned entrepreneur with more than a decade of experience building and scaling ventures across automotive, equipment and industrial sectors, said the milestone marks a significant step in the company’s growth journey:
“This transaction represents a deliberate step in our evolution as a business. Over the past decade, we have built strong capabilities in vehicle supply, particularly within the public sector, and this transition into an OEM-approved dealership allows us to move further up the value chain and participate more meaningfully in automotive retail.”
Bafana Mathebula, who has more than 15 years of experience across automotive and related sectors, said: “This transaction gives us the platform to operationalise a fully-fledged dealership and execute within a more structured and competitive retail environment.”
The project will retain 18 existing jobs while creating a further 10 new positions, bringing total employment to 28. It is expected to generate an estimated R115m in annual turnover and unlock about R578m in market access over the next five years.
Motoring Staff
www.businessday.co.za
