FUND GOVERNANCE AND ADMINISTRATION

​

As part of the governance and administration of the EC EDF and its constituent fund products, four committees have been positioned with oversight in the areas of governance, funding application assessment, adjudication and approvals, administrative management; product development, and due diligence. The four committees are the Fund Governance and Operational Committee; the Product Development and Review ad hoc Committee; the Due Diligence ad hoc Committee, and the Funding Approval Committee. The Fund Governance and Operational Committee is the primary governance structure, with the other 3 committees playing a supportive role in the EC EDF's fund management and governance functions.

​

​

​

Committees:

​

• Fund Governance and Operations Committee (FGOC): This committee was formed to oversee how the ECDC's (and by extension the EC EDF’s) fund management function operates. The FGOC is the higher administration and governance body on all matters related to the EC EDF.

• Fund Approval Committee (FAC): The FAC is a committee that provides support functions to the FGOC.  These functions encompass funding allocations, risk assessment, adjudicating funding applications and reviewing of funding assessments and due diligence.

• Product Development and Review Ad Hoc Committee (PDARAC): The PDARAC serves as one of the 3 committees that act in support of the Primary governance and administration committee, FGOC. It serves on an ad hoc basis, with oversight over the development and review of funding products under the umbrella of the EDF.

• Due Diligence Ad Hoc Committee (DDAC): The DDAC is an ad hoc committee that serves as a support committee for the assessment of funding applications. It includes input from a list of recognised industry specialists on applications that are deemed to be complex in nature, so as to require additional expertise.

​

​

​

​

 

​

​

​

​

​

​

​

​

​

​

​

 

 

 

 

Funding Exclusions

​​

• Social and public infrastructure; including sports, arts, and culture infrastructure without any clear definable economic and developmental impact.

• Grant funding except when incurred for investigation of an area of opportunity or potential relating to a specific project or sector; or for purpose of establishing specific strategic capabilities for pursuing an identified economic opportunity.

• Applications from entities and individuals who in terms of the applicable regulatory framework, are prohibited from accessing funding from the state e.g., employees, political office bearers, etc.

• Existing debt settlement applications where the required support or intervention is directed at paying off an existing debt.

• Business funding applications which generally qualify for funding from the commercial banks.

• In relation to equity investments and pure loans, business/commercial initiatives whose funding, governance and legal framework presents an unacceptable risk for funding or holding of equity – either due to the risky nature of the legal persona; foreign equity holding, or other considerations.

• Applications relating to businesses or involving individuals who have been proven to have defrauded the state; black-listed by the state or have been recipients of earlier support that has not been effectively utilised or accounted for.

• Apart from resource leverage interventions, the fund shall not be open to funding of public- or economic infrastructure that has been mandated to other public entities or government institutions.

• Funding for such leverage interventions, if considered, should not exceed 20% of the total required investment.

• In the event of a deserving investment that requires funding support exceeding the 20% threshold; such funding shall require special approval by the EXMA for funding and investment based on the submissions made by the Fund Manager and supported by the Chief Investment Officer.

• The Fund will prioritise initiatives that are less likely to obtain funding from commercial banks or related institutions.

• Apart from resource leverage interventions, the fund shall not be open to funding of public- or economic infrastructure that has been mandated to other public entities or government institutions.

  • Funding for such leverage interventions should not exceed 20% of the total required investment. In the event of a deserving investment that requires funding support exceeding the 20% threshold; such funding shall require special approval by the EXMA for funding and investment based on the submissions made by the Fund Manager and supported by the Chief Investment Officer.

  • In the event of a deserving investment that requires funding support exceeding the 20% threshold; such funding shall require special approval by the EXMA for funding and investment based on the submissions made by the Fund Manager and supported by the Chief Investment Officer.

​