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Development Finance

The purpose of the Chief  Directorate is to  ensure that smallholder producers have access to finance and that they form part of the mainstream economy. This is achieved through The Micro Agricultural Financial Institutions of South Africa (MAFISA) scheme

 

The  MAFISA scheme

1          What is MAFISA?

MAFISA  provides financial services to smallholder producers in the agriculture, forestry and fisheries sector. The objective of the scheme is to address the financial services needs of smallholder producers in the  sector. Services provided through the scheme include production loans, facilitation of saving mobilization and capacity building for member owned financial institutions (intermediaries).

MAFISA products and services are accessed through a range of institutions accredited by the Department of Agriculture, Forestry and Fisheries (DAFF) to serve as retail intermediaries.

2.1       The purpose of the loan

• Purchase of production inputs (fertilizers, seeds, pesticides etc.);
• Purchase of small equipments and implements such as (Knapsack spray, birds drinkers and feeders, wheel barrow, spades etc);
• Purchase of breeding livestock, medication, feed, branding material etc.

2.2       Savings mobilization

• Encourage MAFISA targeted clients to save in order to accumulate wealth and assets which could be used as collateral in future.

2.3       Capacity building of member owned financial institutions

• Capacitate the member owned financial institutions in order  to enable them to  serve as intermediaries disbursing MAFISA loans for purposes of increasing the level of outreach

3          How to apply

• Contact your local participating intermediary or local agricultural extension officer for application forms;
• Complete the application form (with assistance from the local Agricultural Extension Officer if necessary);
• Attach required documents (e.g. Identity Document, proof of access to land (for more see application form);
• Submit the application form to local accredited intermediary.

4          Eligibility criteria

• Be a South African citizen with a valid South African Identity Document;
• Be from historically disadvantaged groups;
• Enterprise must show ability to repay the loan;
• Be of the age of 21 and above ( between 18 and 20 there is a need for parental/guardian consent);
• Gross non farm income to be not more than R20 000 per month;
• Turnover of the enterprise not to be more than the SARS tax threshold;
• Enterprise  should be agriculture, forestry or fisheries related;
• Positive credit history.

5          Terms and conditions

• Maximum loan size is R500 000 per person;
• Interest rate charged is 8% per annum compound;
• Loans below R25 000 do not  require security;
• Repayment term is tied to income cycle of the enterprise;
• Loans are  available for individuals and groups;
• All applicants must meet MAFISA loan requirements to be considered.  

6          Contact details

            For more information contact the MAFISA at 012 319 7263 / 6825 / 7216
            PortiaMahl@daff.gov.za
            ElizabethKh@daff.gov.za