Mxolisi Matshamba Highlights How SEFA Aims To Nurture The Growth Of SMMEs In South Africa
Mxolisi Matshamba Highlights How SEFA Aims To Nurture The Growth Of SMMEs In South Africa. In a address at the GEC+Africa Global Entrepreneurship Congress, Mxolisi Matshamba, CEO of the Small Enterprise Finance Agency (sefa), highlighted the pivotal role the agency plays in fostering small and medium-sized enterprises (SMMEs) across South Africa. SEFA has a national presence, with its head office located in Centurion, Gauteng. It operates as a development finance institution (DFI) to foster the establishment, development and growth of SMMEs and cooperatives, and to contribute towards poverty alleviation, job creation and economic growth.
Bridging Financial Gaps: Matshamba emphasized sefa’s significant mandate of providing access to finance to SMMEs. Despite being a comparatively small agency in terms of balance sheet, sefa’s focus is monumental. They primarily target township-based and rural enterprises but also extend support to ventures eyeing the urban landscape.
Financial Outreach: Last year alone, sefa disbursed finance to approximately 78,000 SMMEs, highlighting its tangible impact on the economy. Their financial products range from direct lending to partnerships with commercial banks through credit guarantees. This approach ensures broader access to capital while mitigating moral hazards associated with direct state lending.
Microfinance Initiatives: Recognizing the needs of the most vulnerable, sefa engages in microfinance interventions tailored to rural communities. By collaborating with intermediaries, such as local financial institutions, sefa facilitates access to capital for rural entrepreneurs, particularly women engaged in small-scale trading and artisanal activities.
Crowdfunding and Trade Credit Guarantees: Matshamba unveiled sefa’s forthcoming collaboration with the private sector to introduce crowdfunding initiatives, recognizing the fiscal constraints faced by traditional financing avenues. Additionally, sefa’s innovative trade credit guarantee program supports small manufacturers by ensuring access to crucial inputs on credit terms, thereby alleviating cash flow constraints.
The Small Enterprise Finance Agency (SOC) Limited (sefa) provides financial products and services to qualifying SMMEs and cooperatives within the following sectors:
- Services (including retail and wholesale trades and tourism)
- Manufacturing (including agro-processing)
- Agriculture (specifically land reform beneficiaries and contract-farming activities)
- Construction (small construction contractors)
- Mining (specifically small scale miners)
- Green industries (renewable energy, waste and recycling management)
