NORTHERN BUSINESS REVIEW Page 7
Small and medium businesses will receive aid following the launch of the National Empowerment Fund (NEF) on Wednesday 6 July. NEF Board of Trustees chairman, Ronnie Ntuli, said the launch of the fund provides a solution to the private sector to speed up B-BBEE solutions to black enterprises. Private entities will make their enterprise development (ED) contributions to the NEF’s Enterprise Development Fund, which in turn will be used to cofinance the NEF’s investments in enterprise development beneficiaries. “The objective is to facilitate the development, sustainability and financial and operational independence of the beneficiaries,” NEF CEO, Philisiwe Buthelezi, said. As per Code 600 of the Codes of Good Practice, Broad-Based Black Economic Empowerment companies should contribute three percent of its net profit after tax (NPAT) in order to collect the maximum 15 points on ED.