The synergy between the Small Enterprise Finance Agency (sefa) and the private sector are underestimated and under-utilised and could further be exploited to the benefit of small and medium sized enterprises and co-operatives through strategic partnerships' says sefa Chief Executive Officer, Thakhani Makhuvha.

"We have Enterprise Development (ED) partnerships with a few large industrial players, such as Hulamin & South32 Aluminium Beneficiation Initiative and RCL Foods Sugar Cane Farmer Support, but we believe that such strategic partnerships can be developed further in order to assist entrepreneurs, not only in the development of their own small and medium sized businesses and informal trading start-ups, but also to assist employees facing retrenchments in the current economic downturn who already have specific industrial skills."
sefa was established in 2012 and is a wholly owned subsidiary of the Industrial Development Corporation. The agency operates as a Development Finance Institution (DFI) to assist in the establishment, development and growth of SMMEs and Cooperatives, which it believes will contribute to reduction of poverty and increase in job opportunities.

"Together we can do more. One of South Africa's biggest challenges at the moment is employment creation. Employment opportunities in the short-to-medium term will most certainly be created from within the small and medium sized business sector (SMMEs). South Africa has the entrepreneurial spirit, and there are many great initiatives that need some start-up financial assistance to flourish. So I call on engineers and industrialists to knock on sefa's door to partner with us in the development of sustainable SMMEs and Cooperatives, and the job creation that these small enterprises can achieve" said Makhuvha.

sefa is targeting qualifying business ventures to fund within the retail and wholesale trade, services (including tourism, information technology, engineering, transport, logistics, finance and business) manufacturing, agricultural (cash crop contract farming and agro processing), construction, mining and quarrying, green industries (renewable energy, waste and recycling).

About sefa
sefa has a network of branches in major cities throughout South Africa and has recently embarked upon a process of partnering with intermediaries, local municipalities and business chambers  around the country in order to increase outreach, particularly in the outlying rural areas.

In the 2014/15 financial year, sefa facilitated and provided access to finance to 68,724 SMMEs and Cooperatives through its direct and wholesale lending channels, which led to the creation and sustainability of over 60,000 jobs. Makhuvha said "During the last financial year our total project approvals exceeded R1 billion and we achieved a growth of 39% in our approval of financing activities in the Direct Lending Portfolio."

What sefa Offers
sefa offers access to finance via its Direct Lending and Wholesale Lending Portfolios to SMMEs and Cooperatives at competitive interest rates. Loans can include:
ï Asset finance;
ï Bridging Loans;
ï Revolving Loans; and
ï Term Loans.

All of these loans have repayment periods of up to five years. For further information on qualifying criteria, go to: www.sefa.org.za

Our Successes
Direct Lending Portfolio:
Sinmon Trading: black woman entrepreneur building company, Kwa-Zulu Natal ñ sefa approved R4.7 million. It employs 50 employees including sub-contractors.

Meqheleng Waste Management (MWM):
black-owned waste management company, Ficksburg, Free State ñ sefa approved R493, 000. Employs 10 youngsters from the local community.

Wholesale Lending Portfolio:
Phakamani Foundation: registered non-profit, public benefit organisation specialising in empowering women from previously disadvantaged backgrounds through an integrated programme of group lending and basic skills training. sefa approved a R22 million on-lending facility to fund more than 10,000 micro enterprises who support about 50,000 family members.

Anglo Khula Mining Fund:
A fund that invests in viable SMEs involved in small-scale mining and related activities. It is a R200 million joint venture between sefa and Anglo American. The funded SMEs employ 1,650 people.

The Future
"I am convinced that SMMEs and Cooperatives development is the way forward intervention that will alleviate poverty through job creation. sefa is at the forefront of financing such developments. We ensure that access to finance is given to suitably qualified applicants with as less red tape and hoops to jump through as possible. We are a young institution that is a catalyst in the development and success of SMMEs nationally."

"Partnerships with large business enterprises will enhance the development of customised and sector specific solutions for small enterprise initiatives. sefa is a hands-on organisation, we engage with our clients whenever needed to ensure their sustainability success. Our philosophy is that ëWe can make a difference' "concluded Makhuvha.