Rural and Community Development Fund
Rural and Community Development Fund was designed to promote sustainable change in social and economic relations and supporting the goals of growth and development in the rural economy, through financing of sustainable enterprises. This would be achieved through the mobilisation of rural communities in legal entities or cooperatives, in order to participate in the broader economic activities and realise 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.

 

 Sectors funded:  
  • Agro Processing and Manufacturing
  • Eco-Tourism
  • Forestry and Fisheries
  • Commercial Property
  • Aqua and Marine Culture

  • Non - Farm Activities (rural based)
 
 
 
 



The key criteria of this product are:

  • Projects must be financially sustainable

  • BEE applicants should be actively involved in the day-to-day operations of the business

  • Technical partners should be actively involved in the day-to-day operations of the business

  • The NEF will invest using debt, equity and quasi-equity instruments

  • Minimum black ownership of 25.1% is a requirement

  • Joint ventures between black and non-black partners to support skills transfer

  • The business should be able to repay NEF’s investment

  • The business must have a clear value-add with a sustainable business case

  • The NEF will exit from the investment in 5 to 10 years

  • The NEF reserves the right to oblige applicants to participate in the NEF mentorship programme

Rural and Community Development Fund offers the following financing products:

  1.  Acquisition
  2.  New Venture Capital
  3.  Expansion Capital


Site Map    l    Disclaimer