“According to the World Bank, South Africa is one of the most unequal countries in the world (source: Pathways out of the polycrisis; Poverty, Prosperity and Planet Report, World Bank Group, 2024), with 10% of the population holding 80% of the wealth. SEF, a non-profit organisation, was established in 1992 to combat these socio-economic inequalities, in particular extreme poverty among women. Since then, SEF has grown and helped nearly 6 million women in 33 years. To improve their living conditions over the long term, we provide them with both financial and non-financial support. We can count on the commitment of partners, in particular BNP Paribas, which, at the end of 2024, through RCS, the local subsidiary of BNP Paribas Personal Finance, granted us a credit facility of 20 million rands (€1 million), which has enabled us to invest in the development of our support for women from the poorest communities.
Apply for a group loan to move forward together
On the financial side, we grant loans to help them set up their own small business, such as a shop. We draw on the experience of Grameen Bank, founded in 1983 in Bangladesh. Grameen Bank (the “bank of villages”) is the first bank to have granted group microloans to the poorest communities. This practice has enabled a large number of people, mostly women, to find autonomy through professional activity. This is what, in 2006, won the Nobel Peace Prize for Muhammad Yunus, its founder. With group loans as an entry point, SEF provides future women entrepreneurs with a scalable pathway. In concrete terms, five women form an eligible group to apply for a loan that they collectively guarantee as a solidarity group loan. Although they each create their own activity, their responsibility is shared. Through guidelines and field work, groups ensure that the members are credible and that they can work together efficiently.
We start by granting small loans in order for each woman to launch her project. As and when the project progresses, we may increase the amount of the loan up to 35,000 rands (€1,800). In addition, we have designed a group microloan with individual responsibility, where the entrepreneur is only responsible for her own share. Launched as part of a pilot project, this financial instrument is particularly suited to the needs of women who are developing their business at a faster pace than that of other members of their group. Finally, we grant women entrepreneurs who are more experienced individual loans of between 35,000 and 250,000 rands (€1,800 to €13,000).
This support for female entrepreneurship is reinforced by a programme to encourage women to save, to protect themselves against income fluctuations in their activity. We put them in touch with local financial institutions to open a bank account to receive their loan and save.
Also supporting women in a non-financial way
Our non-financial support, which is an essential part of SEF’s mission, is based on two programmes. The first concerns financial and business education. Our loan officer, who assesses and recommends the approval of loan applications, raises their awareness of certain essential concepts, such as bank fees. The second, our community-based Image programme, aims to reduce women’s vulnerability to both HIV and gender-based violence. Our profound motivation is to make a lasting difference in the lives of these women, their families and their communities. One of them developed a business that is now located in several cities across the country. Her husband and two sons work with her. Another created several local jobs through her vegetable growing business. Thanks to entrepreneurship, a third woman financed the higher education of her son, who is now a university graduate. It is truly a question of dignity for our beneficiaries. Each of their individual stories is a great source of pride and motivation for us.”
Interview conducted on 18 March 2025.
The Small Enterprise Foundation NPC (SEF)
SEF was founded in 1992 by John De Wit and Matome Malatji. Born in the rural province of Limpopo, the most disadvantaged in South Africa, it has become the largest microfinance institution in the country. Established in seven of the nine provinces in the country, it currently provides support for 180,000 women. Through financial and non-financial services, it helps them to overcome poverty or extreme poverty, supporting them in their entrepreneurial journey and helping them to realise their potential.
