BBQ (Black Business Quarterly) Page 5
The National Empowerment Fund (NEF) was established by the National Empowerment Fund Act No 105 of 1998, with the aim of promoting and facilitating the participation of blacks in the economy.
The NEF is seen as a driver and a thought leader in this regard, through its provision of financial and non-financial support to black businesses, as well as by promoting a culture of savings and investment among blacks.
Funding from R250 000 to R75-million The NEF is an agency of the department of trade and industry. Accordingly, its funding mandate is directed by the Codes of Good Practice on broad-based black economic empowerment, as well as by the Industrial Policy Action Plan. The NEF provides business loans from R250 000 to R75-million across a range of sectors, for start-up, expansion and equity acquisition purposes. A key requirement for NEF funding is for the investees to be directly involved in the operations of their businesses.