Up to ten small, medium-sized and microenterprises (SMMEs) are getting a shot in the arm as Sasol’s enterprise and supplier development fund secures a R20-million credit guarantee facility from the Small Enterprise Finance Agency (Sefa).
The Sasol Siyakha Fund, which has invested around R130-million since its inception in 2008 to bolster the sustainability of Sasol’s black-owned suppliers, helps to improve the viability of high-risk small and medium-sized enterprises.
The fund provides qualifying loans to Sasol’s suppliers and creates an enabling environment for them to thrive.
“It is partnerships such as the one we have established with Sefa that will enable us to play a meaningful role in supporting small businesses that play a critical role in the development of our economy, create the much-needed jobs and contribute to the socioeconomic development of our communities,” Sasol executive VP for the energy business Maurice Radebe said in a statement on Monday.
The new credit facility is expected to support up to ten SMMEs with an average loan of R2-million, which would create 100 jobs, Small Business Development Minister Lindiwe Zulu said.
“It is a fact that small businesses across the globe have been negatively impacted by economic headwinds. As a result, it is discouraging for lenders to provide capital to start-ups or existing businesses,” said Zulu, adding that now was the time for entities such as Sasol Siyakha Fund, Sefa and its subsidiaries to provide critical support and services for small businesses.