Black economic empowerment
NEF: Fund to boost black entrepreneursThe National Empowerment Fund (NEF) is a government agency set up to provide capital for black economic empowerment transactions. Established via legislation, the NEF is a driver and a thought-leader in promoting and facilitating black economic participation through the provision of financial and non- financial support to black empowered businesses, as well as by promoting a culture of savings and investment among black people.
- Download: The National Empowerment Fund Act No 105 of 1998 and the Broad-Based Black Economic Empowerment Act No. 53 of 2003 [PDF]
- promotion and support of business ventures pioneered and run by black people;
- promotion of the understanding of equity ownership among black people;
- provide black people with direct and indirect opportunities to acquire share interests in state-owned and private business enterprises;
- encourage and promotion of investments, savings and meaningful economic participation among black people.
- Download: The Codes of Good Practice [PDF]
Empowerment dividendThe agency's main investment areas are construction, information and communication technology and media, and food and agro-processing. The impact of the NEF is not driven only by financial terms, but by the "empowerment dividend". This is made up of criteria such as:
- Broad-based black economic empowerment (ownership, management control, employment equity, skills)
- Black women empowerment
- Job creation
- Growth sectors
- Geographic spread
- Investment return
- Transactions concluded
Focused fundsSME and rural and community development The iMbewu Fund supports black entrepreneurs wishing to start new businesses as well support existing black-owned enterprises with expansion capital. The Fund supports these entities by offering debt, quasi-equity and equity finance products. Funding threshold: R250 000 to R10-million. The NEF Rural and Community Development Fund provides investment from R1-million to R50-million to commercially viable projects that seek to economically benefit communities in rural and peri-urban areas. Sectors to be funded include: primary and secondary agriculture; agro-processing; manufacturing; tourism; agro-forestry; retail property development; aqua and marine culture; small-scale mining; renewal energy. Corporate finance and venture capital The NEF uMnotho Fund is designed to improve access to BEE capital. It provides investment debt and equity solutions from R2-million to R75-million, focusing mainly on providing capital to finance acquisitions, expansions and new ventures. Strategic projects fund is focused on increasing the inclusion of black people in early-stage projects. While sectors are those identified as important drivers of growth by the government, each project will be judged on economic merit and ability to deliver on the development mandate.
How do I apply for funding?Whether a start-up or an exisiting business, applicants must fill in an application form once they have familiarised themselves with the NEF requirements and products. The application serves as a screening document, after which you may be requested to draw up a comprehensive business plan.
Contact the NEFNational Empowerment Fund Reviewed: 22 April 2013
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