2017 VTSD ECONOMIC FORUM CONTRIBUTION TO VTSD DEVELOPMENT BY SEFA
sefa Profile Founded April 2012 [merged entity – Khula, samaf & IDC’s SME Activities] Legal Entity State-Owned Company [Government Agency] Reporting Shareholding Department of Small Business Development [DSBD] Shareholding 100% Subsidiary of the IDC Funding IDC Mandate Development of SMMEs & Co-operative Enterprises through the provision of finance Corporate Governance Received unqualified (clean) audit report since establishment Functions Provision of development finance Geographic mandate South Africa Values Kuyasheshwa!; Passion for development; Integrity; Transparency; Innovation
Funding Model 3
Direct Lending focus Direct funding to SMMEs & Co-ops up to R5m Outcomes Type of business phases and financing instruments • Address market failure • Start-ups Job creation • • Expansions • Increase number of SMMEs - participants • Acquisitions • Black-owned SMMEs • Women-owned SMMEs • Asset finance Rural development • • Term loans Youth-owned SMMEs • • Working capital loans • SMMEs owned by people with disabilities Productive industrial sectors • Economic merit & sustainability
W e fund enterprises that… Loan criteria In granting loan financing to qualifying businesses, the applicant must be a South African citizen and permanent resident be a legally registered with fixed physical address be within the required contractual capacity be registered and 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 be a majority shareholder as the owner manager of the business provide, relevant securities / collateral (where available) have a valid Tax Clearance Certificate
What makes sefa different? Differentiation High tolerance for risk in exchange for high developmental impact Provision of capital and/or interest moratorium up to 12 Months 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 targeted groups Own contribution dependent on entrepreneurs financial ability
Impact 2013 – 2017 BOKONE BOPHIRIMA (Direct Lending) 57 R86.4m R64.1m Number of Total funding approvals Funds disbursed businesses financed 2 105 92% R38.1m Jobs of disbursements to black- VTSD Contribution facilitated owned businesses R22.1m R16.6m disbursed to businesses with women ownership of more disbursed to youth-owned businesses than 50% 7
c Operational footprint sefa offices & co-locations Thohoyandou c Tzaneen c c Co-location partners Polokwane c Bushbuckridge Mokopane c Jane Firse Tshwane c c c Nelspruit Malelane Diepsloot Emalahleni c Mahikeng Rustenburg Centurion c c c Johannesburg c c Ekurhuleni Vryburg Soweto Secunda Kuruman Klerksdorp c Kimberley c Pietermaritzburg Durban Bloemfontein Upington c c Springbok De Aar\ c Mthatha c c c Vredenburg Saldanha East London sefa offices Worcester c Cape Town c Port Elizabeth c c Stellenbosch c sefa co-locations George Khayelitsha Wynberg To reduce sefa ’s cost structure, further co-locations options are being considered
Regional Success Stories 9
Entrepreneur’s Credo I do not choose to be a common man. It is my right to be uncommon…if I can I seek opportunity…not security. I want to take the calculated risk; to dream and to build. To fail and to succeed. I will never cower before any master. Nor bend to any threat. It is my heritage to stand proud and unafraid; to think and act for myself, to enjoy the benefits of my creations and to face the World boldly and say this I have done. I am an Entrepreneur 10
sefa fa Contact Deta tails HEAD OFFICE Centurion Eco-Fusion 5, Block D, 1004 T eak Close, Witch-Hazel Avenue, Eco Park, Centurion, 0157 T el: (012) 748 9600 | E-mail: helpline@sefa.org.za www.sefa.org.za 32B Heystek Street Sunetco Building Rustenburg (014) 592 6391
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