Sefa approved loans worth 1.4 billion rand
South African Small Business Finance Agency (SEFA) announced that it had approved loans of 1.4 billion rand for fiscal year 2019/2020 and would have helped more than 74,000 small businesses.
Sefa’s annual report for 2019/2020 further noted that the credit book activity increased by 99% from the previous fiscal year to R703 million.
sefa approved loans of 1.4 billion rand for fiscal year 2019/2020 available via OakParkFinancial
Additionally, the report highlights the agency’s dedication to strong corporate governance with an uninterrupted audit record.
Mxolisi Matshamba, CEO of Sefa, recalls the agency’s commitment to adhere to auditing standards.
“We have had unqualified impeccable audit opinions since the creation of sefa in 2012.”
Sefa provides affordable and accessible financial products and services to SMEs in a range of sectors including services, manufacturing, agriculture, construction and green industries in South Africa.
The main objectives of the agency are to facilitate economic growth, reduce poverty and stimulate job creation through loans and credits offered to eligible SMEs.
Matshamba explains that sefa has developed its offer throughout the 2019/2020 financial year.
“In addition to giving a financial lifeline to thousands of small businesses across the country, we’re also introducing new and creative ways to expand funding. For example, during the past year, sefa launched new products such as the Blended Finance program and the Small Business Innovation Fund (SBIF). “
The Blended Finance program offers both a grant and a loan to small businesses while the SBIF focuses on supporting startups.
Future financing plans
The agency said it plans to deploy more than one billion rand in assistance programs and initiatives to help small businesses recover from the financial impact of the pandemic.
Khumbudzo Ntshavheni, Minister of Small Business Development, provides an overview of future initiatives planned in the foreword to the annual report.
“To stimulate the economic recovery following the Covid-19 pandemic for the SME sector, the department, through sefa, will present various SMEs [small and medium enterprise] – and informal and micro-enterprise programs worth R 23 billion for economic recovery and R 776 million for the response to Covid-19. These programs will include debt relief, credit guarantees and other instruments addressing different funding constraints. “
Various reports have indicated that one of the keys to economic recovery in South Africa is the growth and revival of local SMEs by stimulating job creation and economic growth.