National Empowerment Fund (NEF)
The NEF is, a part of the government’s development mandate to encourage black participation in business and entrepreneurship. It helps to assist black entrepreneurs in achieving funding. This fund aims to assist black youth, women and men, communities and businesses to achieve sustainable success.
Types of NEF Funding
The NEF has four main channels of funding that consist of subdivisions. These are:
1. iMbewu Fund:
- This consists of subdivision is entrepreneur finance, procurement finance and franchise finance.
- This fund supports black entrepreneurs who are starting up a new business or expanding an existing one.
- This contribution takes the form of offering debt counselling, quasi-equity and equity finance products.
- The funds contribution ranges from R250 000 to a maximum of R10 million
2. uMnotho Fund:
- This NEF funding has subdivisions in finance, new venture finance, expansion capital, capital markets, and liquidity and warehousing.
- This fund is available to black entrepreneurs who manage or own businesses, new ventures, expanding existing business. It is also available to black entrepreneurs who want to buy a share of equity in black and white owned businesses.
- The contributions from this fund range from R2 million to R75 million.
3. Rural and Community Development Fund:
- This NEF fund has subdivisions in acquisition, new venture capital, expansion capital and start-up/green categories.
- The creation of this government fund is to promote sustainable change in social and economic relations along with supporting and developing the rural economy by financing sustainable enterprises and co-operatives.
- This NEF funding ranges from R1 million to R50 million.
3. Strategic Projects:
- This NEF fund has subdivisions of empowerment objectives.
- The aim of the government fund is to increase black participation in early-stage projects.
- These projects need to have economic merit and the ability to deliver on the government’s development mandate.
How Can You Apply for NEF Funding?
NEF funding is available for start-up and existing businesses. It will conduct the following processes when evaluating your business:
- It will conduct a, self-needs analysis to determine how the NEF funding can assist your businesses needs and which offer is best suited.
- You will need to provide an application form and a comprehensive proposal with evidence that supports the commercial viability and financial position of your business.
- After you’ve submitted your application to the NEF, it will assess your information for final approval and receiving of funds.
- The NEF website offers the following checklist to ensure you include everything needed when applying for funding.
- You’ll need to meet all the requirements or your application won’t be successfully considered.
- This process can take up to six weeks.
- If your application is successful, it could take up to three to four months to receive NEF funding.
Contact Details for NEF Funding
- For more information about the NEF fund, visit www.nefcorp.co.za.
- Email general enquiries to email@example.com
- Or call the following numbers +27 (0)11 305 8000 or 0861 843 633 (call centre).