This fund would embody NEF’s truest sense of achieving its developmental finance objectives, most importantly securing the participation of black people.
To date that question is being answered and the NEF through SPF takes a leading role and has become the face of BB-BEE in future strategic companies. Established in 2008 as a division within the NEF, the SPF’s mandate is to play a central role in early stage projects by identifying, initiating, scoping and developing projects that are in sectors identified by government as key drivers to South Africa’s economic growth. These projects will be taken through 6-stages of project development.
The phases being the following: Scoping and Concept Study; Pre-Feasibility Study; Bankable Feasibility Study; Financial Closure; Construction Phase; and Technical Completion.
Strategic Projects Fund - Development and Economic Impact
- Creation of new manufacturing and industrial capacity
- Creation of new jobs as opposed replacement capital finance
- Investment of new fixed capital into economically depressed areas or poverty nodes
- Creation of an inclusive economy by increasing black South African participation in early-stage projects
- Increase RSA export-earning potential and reduce import dependency
- Increase co-investment and linkages with foreign direct investors