2017 VTSD ECONOMIC FORUM CONTRIBUTION TO VTSD DEVELOPMENT BY SEFA - - PowerPoint PPT Presentation

CONTRIBUTION TO VTSD DEVELOPMENT BY SEFA

2017 VTSD ECONOMIC FORUM

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

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Type of business phases and financing instruments

• Start-ups
• Expansions
• Acquisitions
• Asset finance
• Term loans
• Working capital loans

Direct Lending focus

Outcomes

• Address market failure
• Job creation
• Increase number of SMMEs - participants
• Black-owned SMMEs
• Women-owned SMMEs
• Rural development
• Youth-owned SMMEs
• SMMEs owned by people with disabilities
• Productive industrial sectors

Economic merit & sustainability Direct funding to SMMEs & Co-ops up to R5m

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

Loan criteria

We fund enterprises that…

• 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

Differentiation

What makes sefa different?

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R86.4m

Total funding approvals

R64.1m

Funds disbursed

57

Number of businesses financed

2 105

Jobs facilitated

92%

• f disbursements to black-
• wned businesses

R22.1m

disbursed to businesses with women ownership of more than 50%

R16.6m

disbursed to youth-owned businesses

Impact 2013 – 2017 BOKONE BOPHIRIMA (Direct Lending)

R38.1m

VTSD Contribution

Operational footprint

Johannesburg Polokwane Nelspruit Soweto Durban Pietermaritzburg Mthatha Cape Town George Upington Kimberley Mahikeng Bloemfontein Port Elizabeth East London Centurion Rustenburg Saldanha Tshwane Ekurhuleni

c c c c c c c c c c c sefa offices sefa co-locations

Klerksdorp

c

Vryburg

c

Co-location partners

Khayelitsha Wynberg

c

Stellenbosch

c

Vredenburg

c

Worcester

c To reduce sefa’s cost structure, further co-locations options are being considered

Thohoyandou

c

Mokopane

c

Jane Firse

c

Tzaneen

c

Kuruman

c

De Aar\

c

Springbok

c

Bushbuckridge

c

Secunda

c

Emalahleni

c

Malelane

c

Diepsloot

sefa offices & co-locations

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Regional Success Stories

I do not choose to be a common man. It is my right to be uncommon…if I can I seek

• pportunity…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

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Entrepreneur’s Credo

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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