Co-operatives

Co-Operatives

A co-operative is an autonomous association of persons united voluntarily to meet their common, social or cultural needs and aspirations through a jointly owned and democratically controlled enterprise and operated on co-operative principles.

Co-operatives enterprises form part of the social economy which contribute towards job creation and creation of common community wealth. It is on this basis that sefa promotes and facilitates the development of co-operatives enterprises by providing accessible funding to these entities and most importantly invest in community projects with huge social impact like in the waste recycling sector, agriculture etc.

sefa provides funding mainly to two types of co-operatives – Co-operatives Financial Institutions (CFIs) and enterprising co-operatives.

Co-Operatives Financials Institutions

These are deposit-taking co-operatives owned by a minimum of 200 or more members. They comprise co-operative banks registered in terms of the Co-operatives Banks Act and financial co-operatives regulated through an Exemption Notice issued in terms of the Banks Act. The financial co-operatives are regulated by Co-operatives Development Agency (CBDA) whilst the co-operative banks are regulated South African Reserve Bank (SARB).

These types of co-operatives provide savings and credit facilities to their members.

To qualify for funding at sefa, the CFI must be/have:

Maximum funding: Based on CBDA/SARB external credit threshold e.g. 15% of the total assets.

Maximum loan term: 5 years

Interest Rate: Prime plus

Enterprising Co-Operatives

These are non-deposit taking co-operatives owned by a minimum of five (5) individual members. These types of co-operatives offer its members various types of services except for savings and loans.

To qualify for funding at sefa, the CFI must be/have:

Maximum funding: R5 m per co-operative.

Maximum loan term: 5 years

Interest Rate: Prime plus