NEF Regional Office - Eastern Cape - Department of Energy · 2015. 11. 10. · National Empowerment...
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Presented by: Ms Nandipha Vena Regional Manager October 2015 NEF Regional Office - Eastern Cape
Transcript of NEF Regional Office - Eastern Cape - Department of Energy · 2015. 11. 10. · National Empowerment...
Presented by: Ms Nandipha Vena Regional Manager
October 2015
NEF Regional Office - Eastern Cape
About the NEF
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NEF Mandate …
Established by the National Empowerment Fund
Act No 105 of 1998, 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
“The National Empowerment Fund (NEF) is the catalyst of broad- based Black Economic Empowerment in South Africa.
We enable, develop, promote
and implement innovative investment and transformation solutions to advance sustainable Black economic participation.”
Mission Statement NEF
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Key Strategic Objectives …
Promote and support business ventures pioneered and run by Black people;
Promote 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 promote investments, savings and meaningful economic participation among Black people.
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Expansion
Entrepreneurship
Procurement
Franchising
Rural & Community Development
Acquisition
Some of the Funding Products?
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The National Empowerment Fund (“NEF”) was established by the National Empowerment Fund Act No 105 of 1998. 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. To accelerate the provision of funding to businesses owned by black women, the NEF has established a Fund that focuses solely on black women.
WOMEN EMPOWERMENT FUND (“WEF”)
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Finance provided from R250,000 to R75 million across all the NEF products.
In order to provide for different transactional needs, WEF uses a range of funding instruments that range from secured (senior debt) to unsecured options (equity), and/or a hybrid of the two.
Pricing is commensurate with the risk taken and the instrument used.
Application process:
Funding requirements: Minimum of 51% black female ownership. Operational involvement at the managerial and board
levels by black women. Commercial viability of the business case being
presented. Compliance with all relevant laws and regulations. Ability of the business to repay WEF funding. Creation of jobs. Geographic location of the business is also important
with the focus on rural or economically depressed areas encouraged.
Possibility of co-funding with private or public sector institutions is encouraged in larger projects.
For property transactions, at least 51% of the annual expenditure of the business to be allocated to majority black-owned businesses.
Contact details: Palesa Mzolo Acting Fund Manager 011 305 8000/8211 [email protected]
Women’s Empowerment Fund
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Fund a Woman, Fund a Nation
Objective To deliberately facilitate the participation of Black
women in the main stream of the economy Strategy
Leverage existing relationships to drive a pipeline of women lead transactions
Partner with government departments to facilitate opportunities provided by those departments
Project development of opportunities identified from deficiencies in the market highlighted in investment approval processes (e.g. Local manufacturing of beads)
Sponsor identification through women lead businesses and associations, incubator, business schools and funding competitions
NEF Funding Criteria Each application is assessed in terms of the following criteria: minimum percentage of black ownership or interest, black women empowerment, black managerial and operational involvement, commercial viability of the business, specific product criteria, job creation, geographic location of the business (rural/urban/disadvantaged areas), community involvement, compliance with all the relevant laws and regulations, return on investment, and the possibility of co-funding with another public or private sector institution.
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SME Market Failures The NEF seeks to address the following market failures: Lack of access to finance Lack of access to markets Lack of specific industry-knowledge and/or management experience Limited or no equity contribution SMEs have low bargaining power with suppliers and customers (they are price-takers) SMEs compete with well-established businesses They are often undercapitalized and have low asset base SMEs are characterised by lack of accurate and reliable information, and lack of
business-planning skills Lack of management depth – small and multifunctional, and often lack a range of
business-management skills
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Mentorship
Ongoing mentorship support across the country
Globally, 30% of start-ups fail in the first 2 years, Less than 50% survive beyond 4 years Mentors across the country to help businesses Expert advice on strategy and operations Improve the chances of the business succeeding Provided for free to NEF investees
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Franchises Funded to Date Pre-approved Franchise Agreements
