Through our Thembani International Guarantee Fund we offer finance between R50 000 and R10 million to SMEs operating in South Africa, Southern Africa and/or in countries where Absa operates.

Enterprise Development Centres

We have enterprise development centres located throughout South Africa waiting to support you.

Enterprise Development Centre

Access to markets

Our virtual marketplace, the Procurement Portal, connects SMEs, suppliers and corporate buyers.

Procurement Portal

Qualifying criteria
  • Your business should be BBBEE with minimum 51% black ownership.
  • Your business should have operations in South Africa and within Southern Africa and/or countries where Absa has operations.
  • Entrepreneurs should have the skills and or expertise relevant to business and/or the industry/sector or be linked to an enterprise development support structure like Absa’s Enterprise Development Centres or Shanduka Black Umbrellas.
  • You should have a researched business plan.
  • You should demonstrate profitability via historical financials and/or a realistic cash flow forecast.
  • You should have evidence of revenue stream.
  • Main transactional account to be held with Absa. No split banking is allowed
Features
  • Loan amounts  - minimum R50 000 and maximum guarantee amount R10 million (at 50% guarantee maximum loan amount will be R20 million)
  • The preferred term of loan should be a maximum of 5 years 
  • Interest rate is prime linked; which will be risk based lending
  • Corporate and government contracts can be financed at different fee structures (3%)
  • Open to certain approved industry/sectors (Terms and conditions apply)
  • Structure the payments of the loan directly to suppliers
  • Initiation fee that the client has to pay to Thembani:
    • 2,8% fee for 1st year (0,5% initiation fee paid prior to disbursement and 1,5% per annum guarantee invoice upfront before disbursement. While the 1,5% is payable upfront where cash-flow is not accommodating, arrangements can be made to have the 1,5% paid in four instalments at the beginning of each quarter)
    • 2,3% for every year thereafter 
  • Repeat loans and increases in facilities are allowed during the term of the facility
  • AVAF/CAF - that are necessary for production of goods or provision of service to happen. Yellow goods will also be covered. These movable assets must be used for the business operation.
Excluded from the Thembani International Guarentee Fund
  • All trusts, public companies, individuals and Section 21 Companies 
  • The acquisition of commercial and residential property finance*
  • No split banking is allowed
  • Production; manufacturing and sales of all “sin products” are excluded (i.e. alcohol and tobacco, etc) where the production or service is the core business  

* Commercial and residential property finance including affordable housing finance; incremental housing finance; and working capital required to modify, upgrade or renovate in order to make the asset productive and profitable.

How to get it

Complete the application form and bring it to your nearest Absa branch, along with the supporting documentation listed on the last page of the form.

Alternative Funding application form (85kb)

Need more help?

Let one of our consultants assist you.

Contact your relationship executive.

Call Absa Business Banking on:

0860 040 302

Email us at:

ED@absa.co.za