SAMAF is a pro-poor developmental credit wholesale fund.
It seeks to reach out broader and deeper to the enterprising and working poor in the rural and the peri-urban settlements of South Africa.
It identifies, selects, evaluates and supports community base financial intermediaries.
The fund offers 4 products which include Savings Formalisation, Savings Mobilisation, Credit Fund and Capacity Building Fund.
The Fund is governed by the legislative environment of South Africa relevant to the Developmental Financial Institutions.
SAMAF mandate is to provide on-lending funds and supports capacity building of the Financial Intermediaries (FI’s) that are deeply rooted in the rural and the peri-urban communities, which are controlled and governed by such communities, thus contributing to the reduction of poverty and unemployment.
To be a leader in the field of Developmental Micro finance and support the development of best practice models in South Africa.
To provide Developmental Micro Finance services by going deeper and broader to the target market through a network of community based financial intermediaries.
Integrity, Transparency, Professionalism, Accountability, High Performance.
Organisations that meet requirement 1, 2, 3 and 4 below can contact SAMAF offices for assistance.
All FSC registrations are done through SAMAF. This means interested parties must contact the SAMAF Provincial Office for guidance.SAMAF Provincial Offices can be contacted for enquiries during weekdays (Monday – Friday).
Financial Services Co-operatives - FSC’s
Must be engaged in Financial Services (Savings and credit/loans).
Must have been operating at least for twelve months (as trading entity, Umgalelo, or Stokvel with members saving and loaning).
Must be involved in both savings and on-lending/credit activities.
Must be compliant with the Co-operative Act and NCA.
Compliant with the deposit taking legislation as per SAMAF regulation.
Must adhere to the Co-operative Principles and the FSC Constitution.
Must have a fully functioning committee/board.
Must have records of the FSC/Organisation.
Must have most recent bank statement, monthly contributions, monthly loan repayments and member list.
Assisting members of co-operatives in understanding their constitutions and enhancing compliance with the requirements of the Co-operatives Act No 14 of 2005.
Term Loans – R40 million
Long term loans, linked to prime and repayable over a period of up to 5 years.
Seed Capital – R10 million
Purchasing of basic equipment, certification for quality and standards in order to enhance competitiveness.
Marketing and Communications – R4 million
Outreach programmes, information brochures, website, branding, etc.
Progress on the use of funds to date
42 Co-operatives have been approved funding under the Co-operatives Fund since Nov 2010 – Oct 2011.
R26 million has been committed for Term Loans to the approved co-operatives (Nov 2010 – Oct 2011).
R1.8 million has already been committed to Technical Skills Improvement of Agricultural Co-operatives (R1.4 million spent).
R800 000 committed to Quality Improvement of Products of Co-operatives (SABS – 22 November 2011 signing an Agreement).
Approved Agricultural Co-operatives include:
Piggery Producers – slaughtering, packaging and selling to the market (local supermarkets).
Vegetable and Crop Producers – planting, packaging and selling to the market (local supermarkets).
Poultry Producers – growing, slaughtering, packaging and selling to the market (local supermarkets).
Dairy Producing – milking, packaging and market (local supermarkets).
Approved Manufacturing Co-operatives include:
Brickmaking co-operatives – producing and selling to local contractors.
School Furniture – making desks and chairs for local schools.
Bread making – baking bread and selling within communities, local supermarkets and other spaza shops.
Sewing and textile – mainly producing uniforms for schools.
Honey Production – harvesting honey directly from bees, packaging it and selling to local supermarkets.
These 42 Co-operatives are creating new jobs for approximately 674 people within their communities, over and above about 210 founding members that are also working in the co-operatives. ECDC implements proper credit guidelines in granting loans guided by the policy signed by DEDEA and ECDC.
Spatial Distribution of funded co-operatives
Economic Distribution of funded co-operatives
Consistent infighting of members – frustrating governance.
Dominant personalities within co-operatives who “bully” other members.
Government officials personally establishing co-operatives thereby contradicting the principle of “autonomy and independence” of co-operatives.
Lack of commitment of government to procuring from co-operatives on a consistent basis.
Access to mentorship activities for co-operatives remains minimal (bookkeeping, technical training and branding).
Access to governance training (Act of 2005).
Lack of understanding of the constitutions by members.
The quality of products by co-operatives remains poor.
Lack of access to auditing services results in co-operatives not complying with Section 47 of the Co-operatives Act of 2005.
What next for the ECDC
ECDC will be signing formal Memorandum of Agreement with the SABS
Quality Assessment of co-operatives products.
Training and Certification (SABS stamp on products).
Improved market access.
ECDC needs to engage Fruit & Veg, Spar, Pick ‘n Pay, Shoprite, Boxer, etc.
Supply chickens and pork meat.
ECDC to engage Dept. of Health, Education, Clothing stores, etc
Supply of school uniforms, hospital linen, pyjamas, other garments.
Government procurement sector.
These efforts are to improve access to markets whilst improving product quality for co-operatives.
ECDC will now introduce bookkeeping.
Technical Skills Training
During the month of September 2011, Fort Cox College designed and conducted training to all the 16 Agricultural Co-operatives funded by Imvaba Fund.
A total of 59 members from 16 Co-operatives were incubated at Fort Cox College for a month of September 2011 and taught Best Practice in the production of Agricultural Products.
A specific Training Module on Occupational Health and Safety was also conducted.
First Aid Training and First Aid Kits were also provided by St Johns Ambulance for the 16 Agricultural Co-operatives.
All the co-operatives were also trained in Nursery Management, Farm Business Management, Bookkeeping and Record Keeping.
Ideal housing structures for chickens (roof, ventilation, lighting, drinkers, feeding space and feeding basins).
Management of the day old chicks.
Biosecurity Programme for the poultry farm.
House Preparation and Management.
Feeding Management (Starter, Grower, Finisher and Post finisher).
Health and Disease Management Programme (causes, prevention and treatment).
Health and safety issues in broiler production.
Crop and Vegetable Production
Nutrient and Climatic Requirements.
Planting and Fertilisers.
Weed control, Pest and Diseases.
Irrigation/ Water Requirements.
Ideal housing structures for pigs (Walls, Floors, Drainage, Roof, Ventilation, Light, Drinkers and Feeding space and feeding basins).
Types of Pens for Pigs (Furrow Pens, Boar pens, Mating Pens, Dry Sow Pens and Gilt Pens/ Growing Pens).
Improved Modern Breeds (Selection of Sows, Selection of Boars and Mating).