On 13 August 2026, the Small Enterprise Development and Finance Agency (SEDFA), through its subsidiary, the Khula Credit Guarantee Scheme (KCG), and First National Bank (FNB) visited the R8.934 million Makgoba Trust agricultural project in Magoebaskloof Tzaneen. The visit demonstrated how public-private partnerships can unlock access to finance and support the growth of emerging agricultural enterprises.
Guarantees that unlock finance
The visit highlighted the impact of KCG’s partial credit guarantee, which enabled FNB to provide the financing required for Makgoba Trust to develop and expand its agricultural operations. Through its partnership with FNB Agriculture, KCG has facilitated guarantees with a total value of R121.004 million.
The Makgoba Dieplaagte Trust project is a practical example of how KCG’s credit guarantee model can address one of the main barriers facing small and emerging enterprises: limited collateral and difficulty accessing conventional finance.
By sharing a portion of the lending risk with participating financial institutions, KCG enables lenders to extend finance to viable enterprises that may otherwise struggle to secure funding.
In this case, KCG’s guarantee helped create the conditions for FNB to provide the required capital, demonstrating how public-sector support can mobilise private-sector investment for productive enterprise growth.
“Credit guarantees are not simply about reducing risk for lenders; they are about unlocking opportunities for viable enterprises that have the potential to contribute to economic growth and job creation,” said Mr Letlatsa Lehana, Head of Department: Khula Credit Guarantee (SOC) Ltd.
A model for agricultural enterprise development
The partnership between SEDFA, KCG, FNB, Makgoba Trust and ZZ2 demonstrates the value of collaboration between government, financial institutions and the private sector in supporting agricultural development.
FNB provided the financing, while ZZ2, a leading agricultural enterprise, serves as the commercial partner by providing market access and operational support that strengthen the project’s sustainability and growth prospects.
The Makgoba Trust project produces high-quality agricultural products, including avocados, and has access to international markets, including Europe. It also creates opportunities for Trust beneficiaries and contributes to broader participation in the agricultural value chain.
SEDFA views partnerships of this nature as critical to expanding access to finance for MSMEs and cooperatives, particularly enterprises operating in productive sectors such as agriculture.
Leveraging public and private sector resources
The Makgoba Trust project illustrates KCG’s broader role in using public resources to mobilise significantly greater levels of private-sector finance.
This approach supports SEDFA’s mandate to expand access to finance, promote enterprise development and enable MSMEs to participate meaningfully in the economy.
The visit allowed stakeholders to see first-hand how the KCG model works in practice, and how coordinated support can translate into productive investment, enterprise growth and new opportunities for communities.
