NEF: Fund to boost black entrepreneurs
for those of us who may not know what (NEF) is about, the National Empowerment Fund (NEF) is a government agency set up to provide
capital (Financial start up assistance) for black economic empowerment transactions.
Established through legislation, the NEF is said to be 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. I thought it nice to share their information on this page. More after the cut...
According to SA.Info website; The NEF Trust operates under the umbrella of the Department of Trade and Industry
(DTI) and is governed by a board of trustees which is chaired by the
director-general
of the DTI.
It has as its strategic objectives:
- 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.
The NEF's mandate and funding are in line with national growth and industrial
objectives which aim to increase South Africa's competitiveness and support for co-
operatives and small businesses.
As the debate concerning what constitutes meaningful and sustainable BB-BEE
evolves, the NEF says it anticipates future funding and investment requirements to
help black individuals, communities and businesses achieve each element of the
Codes of Good
Practice on B-BBEE.
These include a focus on preferential procurement, broadening the reach of black
equity ownership, transformation in management and staff and preventing the dilution
of black shareholding.
Empowerment dividend
The 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 funds
SME 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 familiarized 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 NEF
Credit: SAinfo reporter, incorporating information from the National Empowerment Fund
Reviewed: 22 April 2013
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