Sasfin secures millions in funding to help revive Covid-19 hit businesses

DURBAN – Banking and financial services group Sasfin announced on Wednesday that it had obtained a R390 million funding line as well as a R600 million portfolio guarantee facility (Nasira) from Dutch entrepreneurial development bank FMO to provide loans to women, youth and Covid-19 impacted businesses.

Sasfin chief executive Michael Sassoon said this innovative financial programme aimed to promote inclusive growth, job creation and sustainable development in the country. “The facility comes with technical assistance from the Frankfurt School of Finance and Management to ensure the development aims are met.”

Sasfin said it was the first bank in the world to receive the Nasira guarantee provided by the EU. FMO provided guarantees to unlock lending to these entrepreneur groups that were typically regarded as higher credit risk. By “risk-sharing” Nasira reduced the risks of lending to vulnerable and underserved parts of the population.

FMO invests in businesses, projects and financial institutions, by providing capital, knowledge and networks to support sustainable growth and empowered entrepreneurs across the developing world.

Although South Africa has eased lockdown at level 1 small, medium and micro-sized enterprises (SMMEs) in the country have been hard hit by the lockdowns necessitated by the need to curb the Covid-19 global pandemic.