South African President Cyril Ramaphosa has launched a fund headed by some of the country's best business people to promote small- and medium-enterprises (SMEs) and the employment. 

The SA SME Fund aims to invest in SMEs with turnover between R20 million ($1.40 million) and R500 million ($35.23 million) and will support 10 significant black businesses, 200 SMEs, and 5 black entrepreneurs over the next five years. Just like other VC funding initiatives, the Fund will also help mentor these businesses. 

Part of the fund's objective is to create employment as South Africa's most recent unemployment figures were 27.7%, while the economy is set to grow at under 2%. The SME sector is globally seen as the growth vehicle for both economic activity and job creation. 

The SA SME Fund came out the CEO Initiative, which was set up by heads of major businesses to “address some of the most pressing challenges to the country’s economic growth” especially in the SME sector.

The ZAR1.4 billion funds ($95 million) is made up of pledges from South African businesses and already R725 million ($50 million) has been committed.