The National Empowerment Fund (NEF’s) role is to support Broad-Based Black Economic Empowerment (BB-BEE)
The National Empowerment Fund (NEF) assists individuals, communities and businesses achieve success through their funding programs. Established by the National Empowerment Fund Act No 105 of 1998 (NEF Act), the National Empowerment Fund (the NEF) is a driver and thought-leader in promoting and facilitating black economic participation by providing financial and non-financial support to black empowered businesses, and by promoting a culture of savings and investment among black people. The fund provides business loans from R250 000 to R75 million across all industry sectors, for start-ups, expansion and equity acquisition purposes. NEF funding is currently obtainable from four funds. These are:
iMbewu Fund through the National Empowerment Fund
This Fund is designed to assist black entrepreneurs who want to start new businesses and existing businesses with expansion capital. The Fund offers debt, quasi-equity and equity finance products with the funding threshold ranging from a minimum of R250 000 to a maximum of R10 million. Funding is delivered in the form of Entrepreneurship Finance, Procurement Finance and Franchise Finance products.
This Fund is designed to improve access to BEE capital. Funding ranges from R2 million to R50 million and is divided into five products: Acquisition Finance, New Venture Finance, Expansion Capital, Capital Markets, and Liquidity and Warehousing.
Rural and Community Development Fund through the National Empowerment Fund
This fund was designed to promote sustainable change in social and economic relations and to support the growth and development in the rural economy, by financing sustainable enterprises. This would be achieved through the mobilization of rural communities in legal entities or cooperatives, in order to realize the economic transformation goals in rural South Africa. The fund has three products: Acquisition Finance, Expansion Capital and Project Finance (New Venture/Start-up/Greenfields) with the funding threshold ranging from a minimum of R1 million to R50 million.
The Strategic Project Fund (SPF) through the National Empowerment Fund
The Strategic Project Fund is at the centre of NEF’s investment strategy when it comes to securing the participation of black people in early stage projects. Its core function is to provide Venture Capital Finance aimed at developing South Africa’s new and strategic industrial capacity within strategic sectors identified by government as key drivers to economic growth.
Why use DTC…
At DTC we understand the complexities of the various funding agencies (guage this by downloading the NEF’s application form below) and the unique application criteria for each. We have assisted thousands of entrepreneurs through the application process to access funding for businesses, and we can assist you with the same.
Contact us for more information on funding through the National Empowerment Funding.
NEF’s Application Form: National Empowerment Fund (NEF) Funding Application Form