Introducing sefa …Umsunduzi Business day – May 2015

Corporate Profile

Established April 2012 (merged entity)

Corporate Type State-owned Company registered in terms of the Companies Act

Shareholding 100% owned by IDC

Reporting Economic Development Department

Funding Government & IDC

Objective Development of sustainable Small Medium and Micro Enterprises and Co-operative Enterprises

Activities Provision of finance

Geographic mandate

South Africa

Finance Provided funding of R1bn to SMMEs in FY2014

Governance Follows normal company policy and procedures

Values Kuyasheshwa!; Passion for development; Integrity; Transparency; Innovation

Strategic & Operational Principles

Focus of SMMEs

Market Failure

Catalytic or unlocking latent potential

Transformative

Partnership

Distribution model

Portfolio of Products

DIRECT LENDING

• Working Capital Facilities

• Asset Finance

• Term Loans

• Revolving Loans

• Bridging Loans

• Short-term Trade Finance

SECTOR-SPECIFIC

FINANCING PRODUCTS

• Land Reform - Land Reform Empowerment Facility for emerging black farmers.

• Tourism: iKwezi Tourism Facility (sefa /Tourism Enterprise Partnership (TEP))

• Sugar Farming: sefa/ Hulett Sugar (THS) Facility

• Mining: sefa Anglo-American Mining Fund

• Youth: sefa/Awethu Youth Fund

CREDIT GUARANTEE

SCHEME

• Designed to indemnify commercial banks and suppliers who extend credit to SMME.

• Supplier Credit Guarantee programme is in its pilot phase.

• funding from R50k up to R5 m million

MICRO-FINANCE

• sefa has partnered with 13 MFIs nationally

• small scale finance – between R500 and R50k

CO-OPERATIVE FINANCIAL

INSTITUTIONS (CFIs)

• sefa has partnered with 10 CFIs in across the country

• facilities from R500 up to R50k

Geographic footprint

Funding requirements …

• are owned by South African citizens and permanent residents

• are legally registered fixed physical address

• are within the required contractual capacity

• operate in South Africa

• have a written proposal or business plan that meets the requirements of sefa’s loan application criteria

• demonstrate the character and ability to repay the loan

• have provided personal and/or credit references (if available)

• have the majority shareholder as the owner manager of the business

• where available, can provide relevant securities/ collateral

• have a valid tax clearance certificate

Funding exclusions

• Manufacturing and selling of ammunition

• Tobacco, liquor, gambling and sex trade

• Political organisations

• Persons under debt review

• Un-rehabilitated insolvent shareholders and/or directors of applying entities

• Primary agriculture (except cash crops and the applicant should have an off take agreement)

• Speculative property development

 

2011/12 2012/13 2013/14

ex-Khula and ex- samaf sefa sefa

Approvals R211 million R440 million R1, 065 billion

Disbursements R143 million R198 million R549 million

Loan book performance

Job facilitated & SMMEs funded

Jobs Facilitated SMMEs Funded0

10000

20000

30000

40000

50000

60000

19853

28362

46402 4640749101

51926

2012/13 2013/14 2014/15 (Dec)

Support to Target Groups

2012/13 2013/14 2014/15 (Dec)

R216 m

R429 mR416m

Businesses funded in Rural / Priority Areas

2012/13 2013/14 2014/15 (Dec)

R82 m

R157 m

R207m

Youth-owned Businesses funded

2012/13 2013/14 2014/15 (Dec)

R390 m

R599 mR636m

Black owned businesses funded

2012/13 2013/14 2014/15 (Dec)

R199m

R362m R328m

Women-owned businesses funded

sefa Provincial Support to SMMEs (Dec’ 14)

Province SMME's Disbursed Amount

Eastern Cape 7239 R 73 676 729Free State 366 R 97 910 847Gauteng 273 R 210 132 316Kwazulu Natal 557 R 84 774 704Limpopo 19798 R 111 036 827Mpumalanga 14063 R 72 329 613Northern Cape 19 R 6 390 976Northwest 9409 R 54 697 003Western Cape 202 R 179 596 929Total 51926 R 890 545 943

Success Stories

• SinMon trading is a construction company based in Durban, KwaZulu Natal. The business is 100% women owned by Mrs Nokulunga Mkhize. In 2014 Mrs Mkhize approached sefa for funding for her start- up business in order to commence with the project of constructing low cost houses that her business had been awarded. The business received funding of R4,545,100.00 from sefa in 2014. Through this project the business has far created 40 job opportunities.

• Sasapi was funded for R2,068,400 for expansion of its manufacturing plant. The business manufactures shoes for Futura Shoes or as they are known Bata Toughees. They are based in Hammarsdale. The business created 120 jobs.

• Abaphumeleli, a construction company, was funded for R4,8 million for construction of low cost houses in Newcastle. This business created 100 jobs.

Success Stories (Contd….)

• Heidi Barkhuizen, which is a sweets/nuts supplier to retailers, was funded for R476, 473. The company is based in Stanger. 28 jobs were created.

• RRK Trading was funded to start up a “Build It” at Umkomaas, South Coast. The business was funded for R2 million. 14 jobs were created.

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Pilot initiative to increase access to Finance

• Pilot initiatives is aimed at establishing a new generations intermediaries

− Reduce to cost of credit, especially to micro enterprises− Provide sefa with scale to reach thousands of enterprises− Technical capability and expertise to provide post investment support to

SMMEs

• Fresh Produce Markets− Majority of informal traders buy fresh produce from municipal markets− 18 municipal Fresh Products markets in SA and 30-40% of buyers is informal

traders− Pilot programme initiated with Durban and Mangaung Fresh Produce Markets− Short credit facilities with a 20% interest rate cap

• Supplier Credit Programme− Indemnifying suppliers of input goods to SMMEs against possible default by

SMME− Short term trade credit facilities (30 day, zero interest)− Pilot initiative – Construction and Steel Sector

• Mobile Micro Enterprise Finance− Technology platform to extend credit via online application server and credit

scoring− Focus on youth entrepreneurship

• Structured Enterprise Finance Solutions− Promote enterprise development and encourage supply chain reform and

business linkages with large corporates− Aligned with the BBBEE codes

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Strategic partnerships

sefa Contact Details

• sefa National Call Centre : 012 748 9600

• 031-368 3485• E-mail:

helpline@sefa.org.za

• www.sefa.org.za

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