Funding For Cooperatives

Funding For Cooperatives

Are you looking for funding for your cooperative? Well SEFA (Small Enterprise Finance Agency) offers to fund cooperatives. This is an institution that was created as a result of the merging of South African Micro Apex Fund, Khula Enterprise Finance Ltd, and the small business activities of IDC.

SEFA‘s objective is to foster the establishment, survival, and growth of SMMEs and contribute towards poverty alleviation and job creation.

Sefa offers business funding in the form of a loan. The loan ranges from R50 000 to 5 000 000, this capital is meant to boost cooperatives that don’t have enough capital to finance its operations and is payable over a period of 5 years

Different cooperative financing as offered by sofa :

  • ​Start-loans: Loans offered through Direct-Lending to survivalist non-financial co-operatives for working capital, e.g. for small orders from government departments, municipalities and the private sector.
  • Business Loans: Loans offered through Direct Lending to all types of co-operatives for funding enterprise projects e.g. purchasing machinery and working capital.
  • On-lending loans: Loans provided through Wholesale Lending to Financial Co-operatives and Co-operative Banks to on-lend to their members.
  • Institutional Strengthening: SEFA provides the following institutional strengthening support; R500 000 grant for Financial Co-operatives start-ups aimed at subsiding operational costs. Mentorship is also provided to non-Financial Cooperatives. This is an indirect expenditure as it is paid directly to the Mentor.


  • Involved in enterprise activities;
  • Valid CIPC Registration Certificate;
  • Certified Constitution ;
  • Valid Tax Clearance Certificate;
  • Valid NCR certificate in the case of a secondary co-operative applying for business loans for the purpose of on-lending to CFIs;
  • Secondary Co-operative applying for business loans to have been in operation for at least three (3) months;
  • Secondary Co-operatives to have loan policies in place;
  • Primary enterprising co-operative to have been in operation for at least six (6) months;/li>
  • Minimum membership of 5 people;
  • Must have been in operations for at least six (6) months;
  • Have a fully functioning board;
  • 3-5 year Business Plan with financial projections;
  • Secondary co-operatives to provide a pipeline of potential clients (CFIs) upon application;
  • Proof of residence of the board members; and
  • Any other documents are that sofa may require.
See also  How to Earn Money Every time Tenderpreneurs Make Money

Leave a Reply

Your email address will not be published. Required fields are marked *