- A unit of the NEF established with a mandate to increase the participation of black people in early-stage projects.
Aligned to national Government policy.
Seeks competitive opportunity for the South African economy and the inclusion of black participation in opportunities at the outset of projects, as opposed to doing so during equity closure.
SPF's sector focus is informed by the government's strategies on industrial development through the dti's National Industrial Policy Framework, the corresponding Industrial Policy Action Plans [IPAP] as well as the current government economic growth strategy, the New Growth Path. The sectors identified based on the IPAP and the New Growth Path and are listed as follows:
- Business Process Outsourcing [Call centres, data storage centres and termination centres];
- Mining, Mineral Processing and Mineral Beneficiation;
- Renewable Energy and Biofuels [solar, biomass, hydro, co-gen and wind];
- Pharmaceuticals and Chemicals
- Forestry, Pulp and Paper;
- Infrastructure [telcoms, healthcare, roads, rail airports, dams and water];
- Tourism [hotels, resorts, tourism attractions and leisure];
The list above is a guideline, and SPF will evaluate each project based on its economic merit and ability to deliver on the Development Mandate.
In the quest to expedite BB-BEE participation not only in small and medium enterprises and existing businesses through acquisition of equity interest in well established businesses but also participation in new sector industries which have been built from the ground, the NEF established the Strategic Projects Fund (SPF).
The SPF 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.
It all began with a simple strategic question; “How is the NEF going to secure the participation and empowerment of black people in strategic sector projects that are at an early stage?” This required NEF to develop a fund that would become a pioneer in providing Venture Capital Finance that would seek to provide seed capital for feasibility studies.