R75m boost for SME logistics finance in Bellville

Freddy Magoro | imag e supplied

Quest, established in 2012 and registered with the National Credit Regulator, provides rent-to-own finance for trucks and trailers, together with asset management, maintenance and insurance. Almost half of its client base (48%) comprises black-owned enterprises.

Closing the SME funding gap

The transaction highlights the role of private credit in bridging South Africa’s SME finance gap, estimated at R350bn, as traditional lenders remain hesitant to back small businesses.

“SMEs account for 91% of formalised businesses in South Africa, yet remain underfunded. This is where private credit players can step in,” said Freddy Magoro, CIO of Creation Capital.

Supporting growth in logistics

The deal comes as South Africa’s transport bottlenecks continue to weigh on the economy, with an estimated R1bn lost daily due to inefficiencies. Quest’s clients operate in last-mile and short-distance logistics, a segment critical to improving supply chain capacity.

Jobs and inclusion

Quest’s funding model enables small transport operators to access vehicles and services needed to grow their businesses. The investment is expected to unlock benefits such as job creation and wider financial inclusion.

Quest CEO Charl Lehmann said the partnership with Creation Capital would support expansion into new markets and strengthen its ability to serve more SMEs.