Restitution Financing

The Restitution Financing Programme uses a mechanism where  beneficiaries of Apartheid,  partner with those who were dishonoured by Apartheid, to specifically address the resultant economic suffering.

Our first project  has supported candidates in qualifying for loans from financial institutions by securing financing to pay the  interest on a commercial loan, as an act of restitution.  The Restitution Foundation secures the financing and offers mentorship to partners, while the beneficiary is responsible for the monthly repayment of the capital to the financial institution. The guidelines for the restitution financing process include:

  • Restitution Foundation raises funds for Restitution Financing Project (donors receive Section 18A tax benefits).
  • The development of a partnership agreement between the Restitution Foundation and the financial institution.
  • The advertisement of the restitution financing project in the community through the media and the selection of short listed candidates.
  • The appointment of an interview panel and interviews with shortlisted candidates.
  • The selection of beneficiaries and the assistance with their loan applications.
  • The introduction of the beneficiaries to the financial institution, who provides loans to the beneficiaries.
  • The Restitution Foundation pays the monthly interest of the loan to the financial institution and the beneficiary repays the capital of the loan in monthly installments.
  • The Restitution Foundation links the beneficiaries with suitable mentors able to assist in developing the partner’s business skills.
  • After the repayment of the loan the beneficiary is encouraged to participate in other restitution financing programmes to assist future beneficiaries.
  • Advocacy for the mobilization of financial institutions to do restitution at their own cost.

 

______________________________________________________________________________________________

 

  • The Restitution Foundation has developed models of restitution financing for Enterprise Development and  Housing and is currently developing models built on the same principles for Education, Agriculture and Health.

 

______________________________________________________________________________________________

 

  • Simon Mabulawa was the 1st recipient of the Restitution Foundation’s restitution financing process .