Introducing sefa
Corporate Profile Established Corporate Type Shareholding Reporting Funding Objective Activities Geographic mandate Finance Governance Values April 2012 (merged entity) State-owned Company registered in terms of the Companies Act 100% owned by IDC Economic Development Department Government & IDC Development of sustainable Small Medium and Micro Enterprises and Co-operative Enterprises Provision of finance South Africa Provided funding of R1bn to SMMEs in FY2014 Follows normal company policy and procedures 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 SECTOR-SPECIFIC FINANCING PRODUCTS MICRO-FINANCE CO-OPERATIVE FINANCIAL INSTITUTIONS (CFIs) CREDIT GUARANTEE SCHEME Working Capital Facilities Asset Finance Term Loans Revolving Loans Bridging Loans Short-term Trade Finance Land Reform - Land Reform Empowerment Facility for emerging black farmers. Tourism: ikwezi Tourism Facility (sefa /Tourism Enterprise Partnership (TEP)) sefa has partnered with 13 MFIs nationally sefa has partnered with 10 CFIs in across the country Designed to indemnify commercial banks and suppliers who extend credit to SMME. Supplier Credit Guarantee programme is in its pilot phase. Sugar Farming: sefa/ Hulett Sugar (THS) Facility funding from R50k up to R5 m million Mining: sefa Anglo- American Mining Fund Youth: sefa/awethu Youth Fund small scale finance between R500 and R50k 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
Loan book performance 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
Job facilitated & SMMEs funded 60000 50000 2012/13 2013/14 2014/15 (Dec) 49101 46402 46407 51926 40000 30000 28362 20000 19853 10000 0 Jobs Facilitated SMMEs Funded
Support to Target Groups Youth-owned Businesses funded Women-owned businesses funded R157 m R207m R362m R328m R82 m R199m 2012/13 2013/14 2014/15 (Dec) 2012/13 2013/14 2014/15 (Dec) Businesses funded in Rural / Priority Areas Black owned businesses funded R429 m R416m R599 m R636m R216 m R390 m 2012/13 2013/14 2014/15 (Dec) 2012/13 2013/14 2014/15 (Dec)
sefa Provincial Support to SMMEs (Dec 14) Province SMME's Disbursed Amount Eastern Cape 7239 R 73 676 729 Free State 366 R 97 910 847 Gauteng 273 R 210 132 316 Kwazulu Natal 557 R 84 774 704 Limpopo 19798 R 111 036 827 Mpumalanga 14063 R 72 329 613 Northern Cape 19 R 6 390 976 Northwest 9409 R 54 697 003 Western Cape 202 R 179 596 929 Total 51926 R 890 545 943
Success Stories Sive Audio Visual (Pty) Ltd, t/a Sive itech is a ICT company owned by Mr Sonwabo Mdwaba. The company was issued with a purchase order by City of Joburg to install and commission electrical installation of four (4) data centres, two (2) in Braamfontein and two (2) in Roodepoort. sefa funded the company for a bridging loan amounting to R4, 5 million. The facility was approved and taken up in September 2013 and it was repaid in February 2014. The company employs 10 young people and it continues to get jobs from both the government and private sector. Towards the end of February 2014 the company approached sefa for a R200,000 loan. This was granted. It is currently underway and the payment is due in May 2014.
Success Stories (Contd.) Thumuhle Trading t/a Engen Jabavu, owned by a young couple (Mr and Mrs Sithole) was funded to operate a currently defunct Engen petrol service station based in Jabavu, Soweto. The company funded for R3, 6 million to purchase the petrol station. The site will consist of four operations, Forecourt, Quickshop, Corner Bakery and Car Wash. This business will employ 29 young individuals (male and female), who were previously unemployed. Piefma Trading and Projects cc, owned by Mr. M. P. Makama. He received his pension payout and decided to invest it in a Timber City Franchise in Soshanguve. The total cost was R1, 831 million. sefa funded the business for R836,00 and the balance was financed by through other sources. The business employs 30 people. The company is currently experiencing cash flow crunch and sefa is helping out the company through assistance of our mentorship and SAICA to (i) improve its cash flow to return to normality (ii) maintain the 30 jobs that have been created as a result of the company s existence.
Success Stories (Contd.) Nambitha Eatery cc, owned by Khulani Vilakazi. Nambitha Eatery is the best known and established restaurant in Soweto and has achieved wide spread acclaims for its excellent variety of food and ambience. Not only in Soweto but from all over Johannesburg it has become one of the popular eating places. sefa is proud to pronounce that we funded this establishment with an amount of R1, 7 million. This was facilitate the expansion programme at this establishment when Mr Vilakazi realised that he needed to do something to capture the world cup crowd in 2010.This facility created about 40 jobs. NOTE: It is important to note that sefa is building a sustainable business relationship with this businesses to help them grow. So it is not a case of we give you a loan, you pay us and off we go. Once we fund you, we want you to do very well in your business and pay us back without stress and know that you have a caring and professional finance partner in sefa.
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 16
Strategic partnerships Project Managem ent (Construct ion Sector) www.tusk css.co.za Business Plan Development Co-location www.seda.org. za Bookkeeping and Secretarial Services www.saica.c o.za Bookkeep ing and Secretaria l Services www.saic a.co.za Business Support SMME Financing www.idc.co.z a www.nyda.g ov.za 17
sefa Contact Details sefa National Call Centre : 012 748 9600 E-mail: helpline@sefa.org.za www.sefa.org.za 18