FORUS is staking 1M MahalaX in a fund to underwrite investment into a productive enterprise using a revenue-based finance model. The production fund is a medium-term investment that attracts a higher coupon than the prudential fund and carries higher risk.
FORUS and the African Wealth fund will offer completion guarantees for procurement finance where appropriate. The revenue-based financing generates a 3% platform administration fee. This fee is split between the African Wealth Fund (2%) which covers the cost of servicing the bond coupon, and FORUS Digital (1%) which covers the operational platform cost of providing the finance.
All productive lending is deployed and returns collected on the FORUS Digital platform. Funds are deployed using digital cash and smart contracts that ensure that the funds are used in the intended manner.
The fund will invest in a wide range of sectors. These include: Merchant Working Capital Finance, Debt Consolidation, Covid19 Business Rescue, Agri, Education, Arts & Entertainment, Cooperatives and Hospitality.