sefa Engaging Women in Oil and Energy Forum

Tembakazi Koali

Regional Manager: KZN

18 July 2014

PMB: Botanic Gardens

Background / Who we are

• sefa was established on 1st

April 2012

• Merger of South African

Micro Apex Fund (samaf),

Khula Enterprise Finance

Limited and the small

business activities of IDC

• Established as a subsidiary of

the IDC under the IDC Act

Strategic Intent

• Mandate: provide access to finance for

survivalist, micro, small and medium businesses

throughout South Africa

• Addresses triple challenges of job creation,

poverty and inequality through enterprise

development

• sefa executes its mission through a hybrid of

wholesale and retail lending products and

services

• Supports start-ups, expansion and

acquisition of existing small business

• Development Financial Institution with a

higher appetite for risk – do not compete

with commercial lenders

Role of sefa / sefa’s Mission

To be the leading catalyst for the

development of sustainable

Survivalist, Micro, Small and

Medium enterprises through the

provision of finance

Mission

Development of SMMEs throughout South Africa by:

• Providing finance to SMMEs on a wholesale and direct basis

• Providing business support services and capacity building

• Creating strategic partnerships for sustainable SMME development and support

• Monitoring the effectiveness and impact of finance provision and capacity development in the SMME sector

Strategic Objectives

• Increase access and provision of finance to small businesses and thereby contribute towards job creation

• Develop and implement a national footprint for effective product and service delivery

• Build an effective and efficient sefa that is a sustainable performance driven organisation

• Build a learning organisation

• Build a sefa that meets all legislative, regulatory and good governance requirements (compliance)

• Build a strong and effective sefa brand emphasizing accessibility to SMMEs

sefa’s target market consists of survivalist, micro, small and

medium businesses as defined in Schedule 1 of the National

Small Business Act of 1996 (as amended in 2004) with

specific focus on:

• Services (including retailing, wholesaling and tourism);

• Manufacturing (including agro-processing);

• Agriculture (specifically land reform beneficiaries and

micro-farming activities);

• Construction (small construction contractors);

• Mining (specifically small miners).

TARGETED GROUPS

• 30% youth-owned enterprises.

• 45% priority rural provinces.

• 40% women-owned businesses.

• 70% black-owned businesses.

• 2% People Living with Disabilities

sefa’s Target Market

Segment Loan Thresholds

Survivalists and

microenterprises

R500 and R50k

Small enterprises R50k to R1m

Medium enterprises R1m to R5m

Direct Lending

8

Product Description

Bridging Loans For businesses which do not have sufficient capital to fulfill their tenders or orders. The

loan duration is maximum 12 months

Revolving

Credit

This advance is available to established sefa’s clients with satisfactory credit records to

facilitate short-term capital requirements for the delivery of existing customer contracts

or orders

Asset Finance

Provision of finance for the acquisition of a fixed assets for use in the operation or

expansion of the business, with each advance repayable monthly on an amortized basis

including interest. The loan duration is for the economic useful life of the asset, not

exceeding 60 months

Term Loans This is an advance with a fixed tenure of between 1 and 5 years. The advance is generally

amortized in equal monthly (or quarterly) installments of principal and interest over the

life of the term loan. The purpose of the loan is to finance longer term working capital

requirements, specific capital acquisition and/or business expansion projects. The loan

duration is a minimum of 12 months, a maximum of 60 months.

Products and Services - Non Financial Services

10

Product Description

Post-loan Business

Support Programme

This service is only provided to SMMEs that have

benefitted from facilities provided by sefa and its

financing partners as a risk mitigating intervention

(e.g. sefa provides a mentor to a small business to

assist with specific aspects of running the

business)

Institutional

Strengthening

Aimed at providing institutional strengthening and

technical assistance to Financial Intermediaries

(e.g. funding provided to an intermediary to assist

it in improving its systems)

• Applicants must be South African citizens or

controlling interest (>50%) of the business enterprise

must be held by SA citizens

• The financed operations must be conducted within

the borders of South Africa,

• If sefa finances transactions that take place outside its

borders or of an export nature sefa must be satisfied

that the proceeds will be remitted to RSA

• The Enterprise(s) must be compliant with generally

accepted corporate governance practices appropriate

to the client’s legal status.

• The project must demonstrate ability to create new

jobs and/or sustain existing ones

• The business must be owner-managed

Eligibility Criteria

What makes sefa different

• Provision of capital and/or interest moratorium (Payment

Holiday) up to 12 Months

• High appetite for risk in exchange for high development

impact

• Financing SMMEs including start up businesses that are often

perceived as high risk

• Addressing the financing gap for loans below R500k

• Provision of pre and post loan business support

• Provision of funding to entrepreneurs with adverse credit

records provided they can demonstrate active remedy of

their indebtedness

• Lending not solely based on security backing – long term

sustainability potential

• Specific focus on youth owned businesses

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Key Strategic Focus

Measure 2013/14 2014/15 2015/16 2016/17 2017/18

Approvals R815.0m R1 072.7m R1 297.8m R1 500.0m R1 760.0m

Disbursements R737.5m R955.3m R1 166.5m R1 354.0m R1 579.0m

Jobs 18 311 22 489 27 508 33 204 38 909

SMMEs 15 129 18 832 22 702 28 428 34 156

STEP 1: Business Plan selection. If the client doesn’t have a business plan the website automatically refers him\her to SEDA for business plan development

STEP 2: If client has business plan, client is asked to upload it and thereafter; STEP 3: Capture all relevant application details.

STEP 4: If successfully submitted client will get confirmation via SMS and Email. Application fully automated and the process already kicked of inside sefa business system.

sefa Contact Details

•KZN Regional Office:

031 368 3485

•sefa National Call

Centre : 086000 7332

•E-mail: helpline@sefa.org.za

•www.sefa.org.za