National Empowerment Fund Requirements
About National Empowerment Fund (NEF)
The vision of the National Empowerment Fund (NEF) is to become the leading provider of innovative transformation solutions for an economically inclusive South Africa.
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.
In pursuit of its mandate, the NEF provides financial and non-financial support. Financial support is comprised of the provision of innovative financing products to black-empowered businesses via five funds: the uMnotho, iMbewu, Rural and Community Development, Strategic Projects, and Women Empowerment Funds. Non-Financial support provided includes the following services: Pre-Investment Support; Post-Investment Support; Turnaround, Workouts, and Restructures; and Socio-Economic Development and Asset Management.
Overseeing Department/Entity
The Type of Businesses that Can Apply for The #Nef
NEF funding is available for a wide range of different business ideas and opportunities. This includes:
- Food and beverage
- Tourism and entertainment
- Retail
- Property
- Financial services
- Energy
- Construction and materials
- Agro-processing
- Manufacturing
- Motor industry
- Transportation
- Textile industry
- Media
Funding Criteria
As long as you run a compliant business that meets the set requirements, any South African business owner can apply for funding.
Each application for funding is assessed in terms of the following criteria:
- The commercial viability of the business case is presented
- The business must comply with all relevant laws and regulations
- There must be operational involvement at the managerial and board levels by black people
- A minimum percentage of black ownership or interest of 50.1% is a requirement
- The business must be able to repay NEF funding
- The business must create a reasonable number of jobs
- The geographic location of the business is also important with the focus on rural or economically depressed areas encouraged
- Meaningful Black women participation is viewed more favorably
- Rural and Community Development Projects must have meaningful participation by communities
- The possibility of co-funding with private or public sector institutions is encouraged in larger projects.
