Tembeka Social Investment Co. Ltd; is a South African social investment company that seeks to promote sustainable development in poor communities by initiating and acting in a chain of Financial Solidarity. It was created in August 1966 by 3 Enterprise Development NGO’s and INAISE member SIDI, at first to act as a guarantee fund for leverage of funds from local banks and other financial institutions; in 2002, Tembeka became a second-tier wholesale financial institution, as a technical and market study indicated that there was a need for such relevant services to be provided in a more flexible way, sensitive to the needs and imperatives of the South African market.
Today, and for a wide range of service providers and sectors in both rural and urban south Africa, Tembeka perceives itself as both initiator and actor in the chain of financial solidarity, and remains committed to sustainably developing the microfinance market by addressing the demands of many people struggling to access relevant and affordable finance. The organization is able to effectively link investors and service providers and final users (clients), with a view to contribute to bringing sustainable and affordable development microfinance to where it is needed most in South Africa.
Tembeka’s activities center on identifying and mobilizing investors (including institutions, corporate social investors and individuals who subscribe Tembeka ‘s vision) and identifying relevant service-providers (organizations and establishing financial partnerships by providing these organizations with wholesale financial facilities, guarantee for leverage purposes and equity investments) to create financial relationships and bring development microfinance to poor communities. Tembeka is a partner of SIDI, CASOFRA, MAIN and the I Support Africa Foundation.
Tembeka is in the process of registering a trust, called Tembeka Business Development Trust. This non-profit organization will operate alongside Tembeka Social Investment and will focus on providing non-financial support to current and potential clients and will also work in the creation of additional financial institutions.