New government agency to fund small businesses.

A new government agency to fund small businesses was launched in Cape Town on Monday.

The Small Enterprise Finance Agency (Sefa) would focus on small scale manufacturing, agro processing, services in infrastructure development, mining services, the green economy and tourism, said Economic Development Minister Ebrahim Patel.

It would be a wholly-owned entity of the Industrial Development Corporation (IDC).

“The rationale for the new agency is to tap into the resources of the IDC to provide a better service to small business,” Patel said at Sefa’s launch.

Sefa was formed from an merger of three public organisations, Kula Enterprises, the SA Microfinance Apex Fund and the IDC’s Small Business Levy Book.

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