The newly developed Small Enterprise Finance Agency (Sefa), unveiled by Economic Development Minister Ebrahim Patel, will assist SMEs in the manufacturing, agro processing, services in infrastructure development, mining services, the green economy and tourism industries.
The new agency is a result of the merger of the South African Micro Finance Apex Fund, Kula Enterprise Finance Limited and the IDC’s Small Business Levy Book. It will be a wholly-owned entity of the Industrial Development Corporation (IDC).
Businesses requiring funds of up to R3-million can apply.
According to Gerrie van Biljon, executive director of Business Partners, specialist risk finance company for SMEs in South Africa, this agency is a much-needed boost will be welcomed by the SME sector in South Africa, as these enterprises are currently struggling when it comes to support, cash flow and financing.