Unlocking Growth: A Guide to SEFA’s Wholesale Lending Programme

For many small and medium enterprises (SMMEs) in South Africa, accessing finance through traditional channels can be challenging. Recognising this gap, the Small Enterprise Finance Agency (SEFA) offers a Wholesale Lending Programme designed to support intermediary institutions that provide funding to SMMEs. This approach allows SEFA to extend its reach and impact by partnering with organisations that understand the needs of local entrepreneurs.

If you are a registered intermediary—such as a micro-lender, non-profit organisation, or financial cooperative—looking to scale your lending activities to SMMEs, SEFA’s Wholesale Lending Programme could be the catalyst you need.

What Is SEFA’s Wholesale Lending Programme?

SEFA’s Wholesale Lending Programme provides funding to intermediary institutions, which then on-lend to qualifying SMMEs. This model enables SEFA to leverage the networks and expertise of intermediaries to reach a broader base of small businesses, particularly those in underserved areas and sectors.

The programme is tailored to support intermediaries that demonstrate a commitment to lending to SMMEs owned by youth, women, people with disabilities, and those operating in rural and township economies.

Key Benefits of the Wholesale Lending Programme

• Access to On-Lending Capital: Intermediaries receive funding at competitive rates to support their lending activities.

• Technical Assistance: SEFA provides capacity-building support to intermediaries to enhance their lending processes and risk management.

• Extended Reach: By partnering with intermediaries, SEFA can support SMMEs that may not directly qualify for or access traditional financing.

• Flexible Terms: Loan terms are structured to align with the cash flow patterns of the intermediary and its clients.

• Impact Focus: The programme prioritises lending to SMMEs that contribute to job creation, economic inclusion, and community development.

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Who Is Eligible for the Wholesale Lending Programme?

The programme is designed for intermediary institutions that meet the following criteria:

• Are registered and compliant with relevant regulatory bodies (e.g., NCR registered for micro-lenders).

• Have a proven track record of lending to SMMEs.

• Demonstrate strong governance and financial management practices.

• Align with SEFA’s mandate of supporting youth, women, people with disabilities, and businesses in rural and township areas.

  
  

What Can the Wholesale Funding Be Used For?

Funding received through the programme must be used for on-lending to qualifying SMMEs. This includes:

• Working Capital Loans: Covering day-to-day operational expenses.

• Asset Finance: Purchasing equipment, machinery, or vehicles.

• Business Expansion: Funding growth initiatives such as scaling operations or entering new markets.

• Start-Up Capital: Supporting new businesses with viable models and growth potential.

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Application Process and Document Requirements

Intermediaries applying for the Wholesale Lending Programme must undergo a thorough due diligence process to ensure they meet SEFA’s standards.

Required Documents Checklist:

1. Entity Documentation:

   • Certified copy of registration certificate (CIPC, NCR, etc.).

   • Memorandum of Incorporation (MOI) or founding documents.

   • Tax clearance certificate.

   • B-BBEE certificate or sworn affidavit.

2. Financial Documents:

   • Audited financial statements for the past 2–3 years.

   • Management accounts (not older than 6 months).

   • Cash flow projections for the next 1–2 years.

   • Portfolio report of existing loans and performance.

3. Governance and Operational Documents:

   • Proof of governance structures (board charters, committee reports).

   • Lending policies and procedures.

   • Risk management framework.

   • CVs of key management personnel.

4. Business Plan:

   • Detailed overview of the intermediary’s lending activities.

   • Target market and sectors served.

   • Strategy for on-lending and impact measurement.

   • Plan for technical assistance and capacity building (if applicable).

5. Additional Support Documents:

   • Credit policy manual.

   • Default management processes.

   • Historical performance data of loans disbursed.

   
   

Why Seek Professional Guidance?

Navigating the requirements of SEFA’s Wholesale Lending Programme can be complex. Professional advisors can help intermediaries:

• Prepare a compelling application aligned with SEFA’s objectives.

• Strengthen governance and risk management frameworks.

• Develop robust monitoring and reporting systems.

• Liaise with SEFA throughout the application and due diligence processes.

Conclusion

SEFA’s Wholesale Lending Programme is a powerful tool for extending financial inclusion to SMMEs across South Africa. By partnering with intermediaries, SEFA ensures that funding reaches entrepreneurs who need it most, driving job creation, economic growth, and transformation.

If you are an intermediary looking to amplify your impact and support SMMEs in your community, this programme could be your gateway to greater scale and sustainability.

We specialise in helping intermediaries access and manage wholesale funding opportunities. Contact us today to schedule a consultation, and let’s unlock growth together.

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