Progress on the Establishment of the Enterprise Development Fund - Portfolio Committee (14 February 2018) 1

Enterprise Development Fund The Enterprise and Supplier Development (“ESD”) aims to create business linkages between small and large businesses in South Africa. sefa, in partnership with the big corporates (in specific industries), has a development strategy for empowering Suppliers by offering business skills, technical skills, funding and access to markets Plans to partner with technical experts, strategic industry bodies and sister DFIs for provision of non-financial support to SMMEs. Plans to partner with technical experts, strategic industry bodies and sister DFIs for provision of non-financial support to SMMEs. Through the Department of Small Business Development(“DSBD”), sefa has sourced €30million for on-lending and €5million for technical assistance to promote SME growth and create employment. The Enterprise Development Fund management by sefa is logical and appropriate as sefa is an agency of government created for that purpose.

Enterprise Development Fund Cognisance of the budget constraint and need to increase economic activity and address the triple challenge of poverty, inequality and unemployment through public and private partnerships. sefa’s under utilised national lending infrastructure and government responsibility to optimise available resources and build on lessons learned. sefa’s partnership track record through multiple instruments which SMMEs’ require over their development cycle. Ability to implement mandates as per capital allocated by donors and other partners, for example, the Land Reform Empowerment Facility. Strong governance and risk framework resulting in clean audits over the five year history. Promote integrated service delivery model between sefa and SEDA aimed at offering seamless nonfinancial and financial support to SMMES Nationally.

Way Forward sefa is awaiting approval of BBB-EE facilitator status by DTI to enable the establishment of the fund. Without the facilitator status sefa cannot progress further. Through the office of DG, sefa has requested DTI to expedite the process.