SMALL ENTERPRISE FINANCE AGENCY                                                 

Small Enterprise Finance Agency abbreviated, as SEFA is a state-owned company (SOC), established in 2012 resulting from a merger of Khula Enterprise, South African Micro Apex Fund (SAMAF) and small business activities of the Industrial Development Corporation (IDC). SEFA is mandated to address the challenges faced by Small, Medium and Micro-sized Enterprises (SMMEs) such as access to financial support. Moreover, SEFA is targeting sustainable SMMEs and cooperatives that are unable to attract commercial credit because applicants are blacklisted, lack security or there is no initial cash flow.

Product offering 

Small Enterprise Finance Agency’s products range between R50, 000.00 and R5, 000 000.00 and the repayment of the loan duration is up to the maximum of 60 months depending on the credit option and in order to apply, the applicant must be a South African citizen or a permanent resident. There are a lot of products offered by SEFA but the financial assistance that is directed to the agricultural sector is in relation to the following:

  • Agro-processing
  • Cash crop contract farming
  • Start-up loans
    • Start-up capital is the financial assistance needed to start a new business. This loan ensures that the enterprise has enough capital to start the business up until the business is sustainable. The repayment duration of this type of loan is up to 5 years (60 months).
  • Working capital facilities
    • Working capital is money used to run the daily activities of the business. Entrepreneurs can use this money to finance overhead costs while waiting for cash receipts. This facility provides the business with immediate access to cash. The repayment duration is up to 12 months.
  • Asset finance
    • This type of finance is used to purchase new and used moveable assets such as machinery and equipment. Assets purchased through this funding must have a serial number because they can be used by SEFA as a security for the loan. The loan repayment term is up to a maximum of 5 years (60 months).
  • Term loans 
    • This type of loan offer businesses cash to buy other forms of moveable assets that cannot be identified by serial numbers like equipment and machinery, such assets includes office furniture, fittings etc. Businesses can purchase fixed assets like equipment that is used in the production processes. The repayment of the term loan ranges between 12 months and 60 months.
  • Revolving loans
    • Revolving loans are used for operating purposes and the amount varies from month to month depending on the cash flow needs of the applicant. This service is provided to existing established businesses with a credit record that is satisfactory. The maximum repayment duration is 12 months.
  • The land reform empowerment facility (LREF) 
    • This is a broad-based black economic empowerment fund capitalised by the Department of Agriculture, Land Reform and Rural Development and is supported by the European Union. The grants under the land reform empowerment facility are as follows:
  • Mortgage loan facility 
    • This is a financing facility that enables the target market to buy and own land for agricultural production purposes, under the following criteria:
    • The maximum loan value of R15 million per project
    • Maximum loan of R1 million per black person participating in the project
    • The loan repayment period must not exceed 12 years.
  • Equity share scheme 
    • An equity share scheme is a business arrangement in which both land reform beneficiaries and private sector partners buy equity in the form of shares in a land-based agricultural enterprise.
    • Maximum loan of R1m per person participating in the venture; and loan repayment period must not exceed 12 years.
  • Production loans 
    • For the purchase of agricultural inputs such as fertilizer, seeds for land reform projects.
    • Available for both crop and livestock enterprises.
    • Repayable within 12 to 18 months (depending on the length of the production cycle).
    • Loan amount of R500 000 per enterprise production cycle.
    • Own contribution of 10 % (of the total funding required) may be required.
  • Agricultural asset finance  
    • For the purchase of agricultural machinery and equipment.
    • Lending threshold of R800 000 per farmer.
    • The repayment period must be within the useful lifespan of a financed asset to a max of 5 years.
    •  A registered bond over financed assets can be used as collateral.


The Amavulandlela Scheme is designed solely for entrepreneurs with disabilities. Entrepreneurs who can apply must have at least 51% ownership. The scheme will offer entrepreneurs with disabilities the standard credit facilities ranging from R50 000 up to R5 million at a preferential fixed interest rate of 7% per annum. Repayment terms for facilities will be up to 60 months. The actual loan duration will be subject to the projected cash flows of the business. Normal SEFA loan administration fees will apply.

Application criteria 

  • The disabilities will have to be verified. 
  • The entrepreneur will have to be operationally involved in the daily running of the business.
  • Funding will be granted to businesses that seek to expand and meritorious start-ups, or to fulfil orders or contracts. 
  • Financing applications must have economic merit (financially sustainable & technically feasible).


  • Labour brokers. 
  • Manufacturing and selling of ammunition. 
  • Tobacco, liquor, gambling and sex trade.
  • Non-profit organisations.
  • Political organisations.
  • Persons under debt review. 
  • Un-rehabilitated insolvent shareholders and/or directors of applying entities.
  • Primary agriculture (except cash crops and the applicant must have an off-take agreement).
  • Speculative property development.

Contact details

Location Physical address Contact number
Cape Town 9th floor, FNB Building, 2 Long Street Tel: 021 418 0126
Saldanha Bay Tonyn Street Tel: 022 714 1713
George 1st Floor Beacon Place, 124 Meade Street  Tel: 044 874 4770











Alternatively, you can visit: