Loans For Poverty stricken Community in NORTHERN CAPE
Kaxu Solar One announces 15 Million ZAR loan program for small businesses in the Khai Ma Community,Northern Cape, South Africa …April 12, 2016.
Kaxu Solar one, the solar plant located in Northen Cape, has reached an agreement with the Small Enterprise Finance Agency (SEFA) to launch a loan program to support small businesses with a capital base of ZAR 15 million. This initiative is part of the socioeconomic and enterprise development program (SEED+ program) that Kaxu Solar One is running in the Khai Ma community (providing support to Pofadder,Pella, Onseepkans and Witbank) as part of its Economic Development Obligations (EDO) under the Renewable Energy Idependent Power Producer Procurement Program (REIPPPP) and represents an important milestone in fostering economic development for isolated communities.
Kaxu Solar One has enrolled more than one hundred small businesses in the SEED+ Program in its first year of existence. This fund aims to improve the situation of lack of access to financial institutions for local businesses, which is currently, among others constraining their growth.
SEFA is a state owned enterprise that provides wholesale and retail loans products in order to develop small businesses. It provides lending facilities to intermediaries for lending to micro, small and medium sized businesses. SEFA also has a direct lending division that processes loans up to ZAR 5 million for start-up finance, asset finance, working capital, term loans and bridging finance for small and medium sized businesses.
The Fund will be managed by Siza Capital, a microfinance institution that supports livelihood improvement among the poor and low- income communities in South Africa, with the required experience and knowledge for lending to SMEs. Kaxu Solar One will launch training and mentoring programs that will support the management capabilities of the beneficiaries.
The SEED+ programme focuses its efforts in six different areas: access to funding, business training, promotion of local businesses through institutions and organizations on the economic development side, education, infrastructure and social protection.
About Kaxu Solar One
KaXu Solar One is a solar power plant in South Africa, based 30 km north-east of Pofadder in the Northern Cape. Kaxu Solar One is owned by Atlantica Yield, Industrial Development Corporation (IDC) and Kaxu Community Trust. Established in 1940, the IDC is a national development finance institution set up to promote economic growth and industrial development. They are owned by the South African government under the supervision of the Economic Development Department. IDC promotes entrepreneurship through the building of competitive industries and enterprises based on sound business principles.
Atlantica Yield is the corporate brand for Abengoa Yield plc, a total return company that owns a diversified portfolio of contracted renewable energy, power generation, electric transmission and water assets in North & South America, and certain markets in EMEA (www.atlanticayield.com).
Kaxu General Manager