Small Enterprise Fund

A total of R20 million has been committed to the Small Enterprise Fund (SEF) for investment in self-employed women groupings.

Old Mutual’s Masisizane Fund and the SEF have created a R20m development finance initiative.
The target market for the fund is households earning below the poverty line and self-employed women amongst the poorest of the poor.

SEF achieves its mission by granting micro credit to fund self-employment opportunities with the aim of permanent job creation. SEF has two programs currently in operation, namely the Tšhomisano Credit Programme (TCP) and Microcredit Programme (MCP) initiatives. TCP is aimed at the poorest households and individuals who do not yet run a business. MCP is targeted at the mid micro credit market, which includes individuals who are already running a micro business with a maximum of six months experience.
SEF conducts thorough research to identify the poorest households and after in-depth training, organises women into groups of five. The women collectively get a loan and then also vouch for each other when it comes to repayment and growing the business.
The loans are limited to a minimum R500, maximum R12 000 and will be repaid over a period of 4, 6 or10 months, or 8 or 12 fortnights.
Interest rates charged are according to the maxima stipulated in the National Credit Act.
SEF also encourages and helps the women open savings accounts with either Nedbank or Postbank.

Self employed groups of five, with each member guaranteeing the others’ repayments.
100% women owned.
Targets households earning below the poverty line.
This fund serves households in the Eastern Cape only (Centani, Nquma and Namacqua).
No loans will be provided to fixed property arrangements and/or ventures that are (in the view of the fund managers) socially undesirable or irresponsible such as business with primary interests in tobacco, gambling, the sex industry and gaming.