The key objective of this EDSE Programme component is to enable Small Enterprise Finance Agency (sefa) to become a facilitator (or strategic investor) in the SMMME finance landscape and assist with the design and operation of new financial instruments funded through EU budget support.
To accomplish this, the technical assistance team will engage in the following activities:
Strengthening financial management within sefa
The goal is to develop sefa’s internal systems, processes, and capacities to operate as a facilitator within the South African SMME Access to Finance Market. The technical assistance team will also work with sefa to build their capacity to manage investment instruments / fund-of-funds, supporting them in preparing a business plan for Budget Support funding to be submitted to National Treasury. Technical assistance will also be provided to strengthen wholesale lending capacities, as well as sefa’s research and monitoring, evaluation and learning.
Assessing the feasibility of a revitalised Credit Guarantee Scheme (CGS)
The technical assistance team will conduct a feasibility study for the recapitalisation and upgrading of sefa’s credit guarantee scheme.
Strengthening the South Africa micro finance market
Based on research, a strategy will be developed to support micro finance – a crucial financial service for micro-enterprises – in South Africa, within the strict confines of the regulatory environment.
Technical assistance to the Land Bank
The technical assistance team will work with the Land Bank to develop a technical assistance package to accelerate the EUR 50 million credit line the Land Bank has received from the European Investment Bank.