Small Enterprise Foundation (South Africa)

Data provided through SEF-ZAF

Gross Loan Portfolio USD, 2011: 19.4 million

Number of active borrowers 2011: 87,273

Average loan balance per borrower USD, 2011: 222.8

Deposits USD, 2011: —

Assets USD, 2011: 20.5 million

Number of depositors 2011: —

Mission:

To work aggressively towards the elimination of poverty by reaching the poor and very poor with a range of financial services to enable them to realise their potential.

Background and Main Challenges:

The Small Enterprise Foundation is a non-profit NGO which began operations in 1992. The aim of SEF is to work towards elimination fo poverty and unemployment. This is accomplished through two programs, the Micro-Credit program(MCP) and Tshomisano Credit program. MCP focuses on existing, but ... Read more

Address:

P.O. Box 212

Tzaneen

850

South Africa

Phone:

27 15 307 5837

Fax:

27 15 307 2977

Email:

info [at] sef [dot] co [dot] za

Website:

www.sef.co.za

Main Funding Sources:

Loans

Products and Services:

Loans

Products:

SEF employs a group-based lending methodology patterned after the Grameen Bank of Bangladesh. Potential members form themselves into groups of five, which are rigorously tested before they are officially recognized. Upon recognition groups are eligible to apply for loans, which they ... Read more

Services Provided:

Education

Looking for (Investment Types):

Loans in Local Currency

Capacity-Building Grants

Donations

Guarantees

% Operations Comprised by MF:

91 - 100

Date established:

Jan 1 1991

FYE:

30-Jun

Current Legal Status:

NGO

Regulated:

yes

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Other target market:	1
Women	2
Clients living in rural areas	3
Int msg targetmothertext c	Very poor people
+ Development goals (ranked by importance)
Poverty reduction	1
Increased access to financial services	2
Development of start-up enterprises	3
Growth of existing businesses	4
Employment generation	5
Gender equality and women's empowerment	6
Health improvement	7
+ Poverty targets
Very poor clients	1
Poor clients	1
+ Governance
Has a formal board committee that monitors social performance
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises	1
+ Savings products offered
+ Compulsory insurance products required
+ Voluntary insurance products offered
+ Other financial products and services offered
No cost credit life insurance
+ Non-financial services offered
+ Enterprise services offered
Business development services	1
+ Education services offered
Financial literacy education	1
Other education services offered:	1
Int ps nonfinsvcedothertext c	Education on HIV/AIDs
+ Health services offered
+ Women's empowerment services offered
Leadership training for women	1
Women's rights education/gender issues training	1
+ Products and services targeting the poor
Products and services specifically designed to target the poor:	Our loan product is designed specifically for the poor and very poor and our process for facilitating savings is also specifically designed for the poor and very poor
+ Social responsibility to clients
+ Client protection principles in use
The loan approval process requires evaluation of borrower repayment capacity and loan affordability. Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.
Internal audits check household debt exposure, lending practices that violate procedures including unauthorized re-financing, multiple borrowers or co-signers per household, and other practices that could increase indebtedness.
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale, including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products, third party fees, and whether these can change over time.
Staff is trained to communicate effectively with all customers, ensuring that they understand the product, the terms of the contract, their rights and obligations. Communications techniques address literacy limitations (e.g. reading contracts out loud, materials in local languages).
The organization's corporate culture values and rewards high standards of ethical behavior and customer service.
A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively used. (Suggestion boxes alone are generally not considered adequate.)
Customers know how their information will be used. Staff explains how data will be used and seeks permission for use.
+ Cost of services to clients
Declining balance interest method
+ Social responsibility to staff
+ Human resources
Benefits (medical insurance, pension contribution)
Protection at work (safety, anti-harassment)
Equality (anti-discrimination, equal pay for men and women with equivalent skill levels)
Equal opportunity employer with specific focus on previously disadvantaged groups.
+ Basis of staff incentives related to social performance
Client retention/drop-out rate
Portfolio quality
+ Social responsibility to the environment
+ Poverty measurement tools in use
Grameen Progress out of Poverty Index (PPI)
Participatory wealth ranking (PWR)	1
Set of SEF defined impact measures

Partnerships

Current
Name	Relationship
AMFISA	Network Affiliation
Hivos-Triodos Fund	Funding
INAFI	Network Affiliation
Oikocredit	Funding
Triodos Fair Share Fund	Funding
Triodos-Doen Foundation	Funding

MFI Report