Khula Enterprise Finance

Khula Enterprise Finance

Established in 1996, Khula Enterprise is an institution that is dedicated to the development and sustainability of small business in South Africa. It is a finance institution that operates in the public and private sectors. 

What does Khula Enterprise do?

The institution essentially supplies funding to small business ventures.

The primary aim is to bridge the funding gap in the SME market that is not addressed by commercial financial institutions.

In the South African market, there are many SME opportunities. Quite often, the main hindrance to these enterprises getting off the ground is due to a lack of funding. Where traditional landing institutions can’t help, Khula Enterprise Finance is there.

What is the Khula Land Reform Empowerment facility (LREF)?

This facility is a Black Economic Empowerment Fund that is administered by Khula.

It is a financing facility through which Khula lends money to commercial banks and other agricultural lenders for on-lending to Land Reform beneficiaries.

What facilities are provided?

Mortgage Loan: 

  • This loan enables the target market to buy and own land for agricultural production purposes.
  • The maximum finance per project amounts to R10 million.
  • The maximum loan per black person participating is R800 000.
  • Loan periods do not exceed 20 years.
  • To qualify for this loan, the business venture must be commercially viable.
  • Funding is provided to South African citizens only.
  • The business venture must be a registered legal entity.

Equity Share Scheme:

With this facility, land reform beneficiaries and private sector partners buy equity in the form of shares in a land-based agricultural enterprise.

To find out more about Khula Enterprise Finance, send an email to:

Visit their website here:

Categories: Loans