THE SMALL ENTERPRISE FOUNDATION NPC
Status: Investment in contracting phaseWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our prospective customer?
The Small Enterprise Foundation (SEF) is a South African non-profit microfinance institution founded in 1992 and headquartered in Limpopo. SEF is the country’s leading microfinance institution (MFI) focused on providing financial services to underserved women in rural areas. Its clients are primarily low-income women entrepreneurs who access credit through a group-lending model that emphasizes trust, financial literacy, and community engagement.
What is our funding objective?
FMO proposes a senior, unsecured, amortizing term loan of USD 4 million equivalent in ZAR to SEF, funded through the MASSIF facility. The proceeds will be used to expand SEF’s microenterprise loan book, specifically targeting women-owned businesses in rural South Africa.
Why do we want to fund this investment?
FMO’s funding supports SEF’s mission to empower women entrepreneurs in underserved rural areas, directly contributing to SDGs 5 (Gender Equality), 8 (Decent Work and Economic Growth), and 10 (Reduced Inequalities). The transaction addresses a local currency financing gap and supports SEF’s recovery from a post-COVID downturn. FMO’s long-standing relationship with SEF since 2015 and its catalytic role in providing stable, mission-aligned capital reinforce the additionality of this investment. The facility is 100% Reducing Inequalities (RI) labelled.
What is the Environmental and Social categorization rationale?
This is an E&S Category C investment. As an indirect investment in a microfinance institution, the environmental and social (E&S) risks are considered low. SEF’s operations focus on small-scale lending to women in rural areas, with limited exposure to sectors with significant E&S risks. The main E&S topics relevant to SEF’s portfolio include client protection, financial literacy, and responsible lending practices. SEF is subject to FMO’s Client Protection Principles (CPP) assessment, and no IFC Performance Standards are triggered. The investment will be monitored through SEF’s Environmental and Social Management System (ESMS), and no significant adverse impacts are expected.
More investments
| Date | Total FMO financing |
|---|---|
| 11/5/2021 | ZAR 50.00 MLN |
| 12/22/2022 | EUR 0.05 MLN |
| 11/24/2022 | ZAR 30.00 MLN |
| 8/8/2018 | EUR 0.06 MLN |
| 1/21/2021 | ZAR 30.00 MLN |
- Website customer/investment
- https://www.sef.co.za/
- Region
- Africa
- Country
- South Africa
- Sector
- Financial Institutions
- Publication date
- 7/17/2025
- Deadline for feedback
- 8/16/2025
- Total FMO financing
- USD 4.00 MLN
- Funding
- MASSIF
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C