national empowerment fund business plan template

Everything You Need to Know About NEF Funding

Mar 13, 2023

Table of Contents

Introduction To The National Empowerment Fund

The National Empowerment Fund (NEF) may be the right funder for you if your business venture has the potential to make a positive impact on the local economy, creates jobs and endeavours to increase the economic participation of black people, women, youth and other previously disenfranchised groups.

The fund is designed to facilitate and promote black economic participation. Founded in post-apartheid South Africa in 1998, the funder provides financial and non-financial support to black entrepreneurs and groups in support of Broad-Based BEE (B-BBEE) in terms of government legislation.

Find Out More About B-BBEE  

How The Nef Supports Smes

The NEF is a major part of the government’s effort to support SMEs in the country. The fund offers a wide variety of financing products which target businesses across all industries.

Businesses can apply for funding for startup, expansion and equity acquisition purposes. This is offered in a combination of debt, equity and quasi-equity. Non-financial support is also made available in the form of funding advice, business planning and “general assistance to help ensure that applications are of sufficient quality to complete all steps in the application process”. Successful NEF candidates can also access post-investment support.

What Goes Into Applying For Development Funding

Before applying for development funding such as NEF funding it’s important that business owners do their research and prepare for what can be an extensive process. Your business must be able to meet the fund’s strict criteria, deal with the heavy paperwork, and handle the long processing times. 

A lack of knowledge and time are some of the key challenges that businesses applying for government funding need to be prepared for, said Zahra Rawjee, director of operations and business development, in a previous interview with SME South Africa . Her company helps entrepreneurs access development funding from the NEF and other government funders.

“Entrepreneurs [who own and manage their own businesses] are good at what they do. While they are masters of their craft, they often have limited knowledge of how or where to access finance from.

“If this knowledge and skill set does reside within the business, capacity constraints exist as these initiatives require a substantial amount of time to see through to conclusion, which will require the business to redirect resources that should be focused on sales and customer service.

Financial and B-BBEE compliance are often also lacking, says Rawjee, including annual financial statements, management accounts and tax clearance.

“Record keeping is essential if you would like to access developmental finance in the future. You need to ensure that you have a strong bookkeeping administrative system, accountants that would ensure you remain tax compliant and provide you with regular management accounts and annual financial statements,” she says.

Finally, business owners also have to manage expectations, she adds.

“The timeframe of decision-making to undertake an expansion project by the client often results in unrealistic expectations.”

Access the full article: The Consulting Firm That’s Helping Black Industrialists Secure Millions In Funding  

The Type Of Businesses That Can Apply For The Nef

NEF funding is available for a wide range of different business ideas and opportunities. This includes:

• Food and beverage
• Tourism and entertainment
• Financial services
• Construction and materials
• Agro-processing
• Manufacturing
• Motor industry
• Transportation
• Textile industry

Funding Criteria

As long as you run a compliant business that meets the set requirements, any South African business owner can apply for funding. 

Each application for funding is assessed in terms of the following criteria:

• Commercial viability of the business case being presented
• The business must comply with all relevant laws and regulations
• There must be operational involvement at the managerial and board levels by black people
• Minimum percentage of black ownership or interest of 50.1% is a requirement
• The business must be able to repay NEF funding
• The business must create a reasonable number of jobs
• Geographic location of the business is also important with the focus on rural or economically depressed areas encouraged
• Meaningful black women participation is viewed more favourably
• Rural and Community Development Projects must have meaningful participation by communities
• Possibility of co-funding with private or public sector institutions is encouraged in larger projects.

Funding Amounts

The NEF provides business loans ranging from R250 000 to R75-million.

Non- Financial Support Available

The following non-support is provided by the NEF. 

• Pre-investment Unit (PIU) – support for entrepreneurs through the application process.

The PIU’s primary functions are to:

• Information on NEF funding & non-funding solutions
• Provide guidance in drawing up funding applications
• Identify applications which meet the NEF’s funding criteria
• Keep clients informed on the progress of their applications
• Advise applicants on qualifying criteria and application process
• Post-investment unit – support to mitigate against business failure.

The unit is responsible for:

• Regular portfolio monitoring
• Regular collections management and credit control
• Mini restructure of distressed investments
• Turnaround and rescue of highly distressed investments
• Legal and workouts
• Active board seats on larger investments
• Mentorship and technical assistance
• Valuations of investee companies
• Impairments of investments; bad debt write off
• Legal Compliance
• Portfolio Management
• Portfolio Risk Management
• Additional funding on existing investments
• Exits on matured investments
• Knowledge Management
• IT system development
• To provide a superior customer relationship management channel for all NEF’s Investees

Funding Approval Process

According to the NEF, the process period is 3 to 4 months on receipt of the application up to the disbursement stage. It includes the following key steps:

• Screening of funding application form
• Submission to investment committee
• Due diligence process
• Resubmission of final report
• Legal process and procedures
• Disbursement

Nef Funding Products

NEF funding is currently obtainable from the following 9 funds:

Women Empowerment Fund (WEF)

The NEF Women Empowerment Fund allocates funding in the form of a loan or debt equity to qualifying black – women owned businesses across all industries for startups, expansion or equity acquisition purposes. 

The funding starts from R250 000 to R75 million. 

The funding requirements for this fund are as follows:

• Minimum of 51% black female ownership.
• Operational involvement at the managerial and board levels by black women.
• Commercial viability of the business case being presented.
• Compliance with all relevant laws and regulations.
• Ability of the business to repay WEF funding.
• Creation of jobs.
• Geographic location of the business is also important with the focus on rural or economically depressed areas encouraged.
• For property transactions, at least 51% of the annual expenditure of the business to be allocated to majority black-owned businesses

Where to Access Funding For Women-Owned Businesses in South Africa [UPDATED] ( https://smesouthafrica.co.za/where-to-access-funding-for-women-owned-businesses-in-south-africa/ )

iMbewu Fund

This fund is designed to support black entrepreneurs requiring startup capital or existing black-owned enterprises in need of expansion capital. 

The key requirements of this product are:

• BEE applicants should be actively involved in the day-to-day management of the business
• Minimum black ownership of 50.1% is a requirement
• Business and/or industry experience by black entrepreneurs is also considered
• The NEF reserves the right to oblige applicants to participate in the NEF mentorship programme where there is lack of business and/or Industry experience
• The business should be able to repay NEF’s investment
• Funding Instruments include term-loans, shares and other structures with ordinary share characteristics
• NEF funding is charged at prime linked interest rates
• Business must have a clear value-add with a sound business case
• Maximum NEF funding is R10 million
• The NEF will exit from the investment in 5 to 7 years

Procurement finance  

The Procurement Finance product assists black-owned SMEs that have secured tenders or contracts with financing to complete them. Funding instruments for this fund include terms loans, bridging finance, asset finance and revolving facilities. NEF funding is generally limited to R10 million for this product.

The key criteria of this product are:

• There must be active participation by black individuals in the operations of the business
• Minimum black ownership of 50.1% is required
• Industry knowledge by management or there must be clear transfer of skills through relevant partnerships
• Funding instruments include term-loans, bridging finance, asset finance, revolving facilities and debt finance
• NEF will fund both the acquisition of assets and the working capital requirements of the business
• The NEF reserves the right to oblige applicant to participate in the NEF mentorship programme
• NEF will support contracts awarded by reputable entities
• NEF does not generally support subcontracts especially those awarded by agents and entities that have a weak financial position and lacking track record
• The contract must be commercially viable and generate sufficient profits and cash flow to repay NEF’s loan

Franchise finance 

This product provides financing for entrepreneurs interested in acquiring a franchise business or looking for expansion capital. 

The key criteria of Franchise finance are:

• The NEF prefers to fund well established franchise concepts
• Active management involvement by BEE parties is required
• Minimum BEE shareholding of 50.1% is a requirement
• NEF funding of franchises is through a loan instrument with the term matching the duration of the franchise license, however, up to a maximum term of 7 years
• BEE party must have been pre-approved by the franchisor before approaching NEF
• NEF funding generally limited to R10 million
• NEF will fund SME; using mainly debt

uMnotho Fund

This Fund is designed to improve access to BEE capital.

uMnotho Fund has the following products:

• Acquisition Finance,
• Project Finance,
• Expansion Finance,
• Capital Markets Fund,
• Liquidity and Warehousing

These products provide capital to black-owned and managed enterprises; black entrepreneurs who are buying equity shares in established black and white owned enterprises; starting new ventures; expanding existing businesses and BEE businesses that are or wish to be listed on the JSE.

• Acquisition finance 
• BEE applicants seeking to fund equity purchases of between R2 million and R75 million in existing businesses
• Focus on medium to large companies
• Focus on partnerships with existing management teams and other equity investors
• Minimum BEE ownership of 25.1% post NEF investment
• Active BEE management participation
• Active BEE involvement in investee companies
• BEE Financial contribution determined on case-by-case basis
• Investment instruments can include a combination of debt, equity and mezzanine finance
• The NEF reserves the right to oblige applicants to participate in the NEF mentorship programme
• Typical investment horizon of 4 to 7 years
• Security to include personal guarantee
• Project Finance

This product provides capital of R5 million to R25 million per project for BEE parties seeking to participate in medium-sized greenfields projects with total funding requests of between R10 million and R200 million.

• Minimum 25.1% BEE shareholding
• Investment instruments can include a combination of debt, equity and mezzanine finance in support of BEE
• BEE-specific financial contribution assessed on a case-by-case basis
• NEF exposure to the project generally not to exceed 50% of total project costs
• Proven management experience within consortium
• Debt funding raised from the market to match equity funding provided by NEF and other project sponsors
• The NEF investment horizon is 5 to 10 years
• Security to include personal guarantees
• Expansion Finance

The NEF will provide funding of R5 million to R75 million to entities that are already black-empowered, but seek expansion capital to grow the business.

• BEE shareholding should be minimum of 50.1%
• Pricing based on instrument, risk matrix, security package, etc.
• Security to include personal guarantee and security over business assets
• Capital Markets Fund

This product invests in BEE enterprises, particularly those owned by black women, that seek to list on the JSE or its junior AltX market. The uMnotho Fund will also help listed BEE companies to raise additional capital for expansion.

All other key features are similar to those of the Acquisition Finance product.

This product assists BEE shareholders who need to sell a portion or all of their shares while keeping the shareholding black (https://www.westerncape.gov.za/text/2013/March/nef-presentation.pdf).

All other key features are similar to the Acquisition Finance Fund.

Strategic Projects Fund (SPF)

The SPF fund works to ensure the participation of black people in early stage projects. The fund provides venture capital finance to develop industrial capacity in strategic sectors identified by the government as key drivers to economic growth.

SPF targets the following priority sectors: 

• Agriculture
• Business Process Outsourcing [Call centres, data storage centres and termination centres]
• Mining, Mineral Processing and Mineral Beneficiation
• Automobiles
• Renewable Energy and Biofuels [solar, biomass, hydro, co-gen and wind]
• Pharmaceuticals and Chemicals
• Forestry, Pulp and Paper
• Infrastructure [telecoms, healthcare, roads, rail airports, dams and water]
• Tourism [hotels, resorts, tourism attractions and leisure]

Rural, Township and Community Development Fund

The aim of the Rural, Township and Community Development Fund is to provide funding to aspiring rural entrepreneurs, cooperatives and community groupings. The fund also seeks to facilitate skills transfer. 

The sectors funded are as follows:

• Agro Processing and Manufacturing
• Eco-Tourism
• Forestry and Fisheries
• Commercial Property
• Aqua and Marine Culture
• Non – Farm Activities (rural based)
• 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 must have a clear value-add with a sustainable business case
• The NEF will exit from the investment in 5 to 10 years

Arts and Culture Venture Capital

The fund is designed to promote and develop the arts and culture sector by providing affordable loans to start and/or expand small businesses.

All compliance requirements listed below must be submitted:

• Compliance Requirements
• Completed NEF application form;
• Business plan and projected Income Statement, Balance Sheet and Cash Flow Statement for the duration of the funding period;
• Cash flow projections indicating how the loan will be repaid over the term and the loan duration;
• Registration documents as a legal entity;
• Valid tax clearance certificate;
• Minimum of 50.1% shareholding by black South African citizens as defined in the B-BBEE Act who are resident within the borders of South Africa;
• In need of start-up or expansion capital;
• Require loan from Arts and Culture Venture Capital Fund of not less than R250,000 and not more than R5 million; However applicants are welcome to apply for normal NEF funding above R5 million;
• Loan repayment should be within twenty four (24) months;
• Own contribution of 5% or more towards the project;
• Audited/reviewed financial statements for the past three years along with management accounts not older than three months ONLY for businesses that have been in operation;
• A minimum of three (3) months must be provided between the closing date of the advert and the actual date when the first disbursement on the loan is required to allow enough time for the project;
• Financing any asset such as equipment or infrastructure must be for the purpose of start-ups or expansion with existing contracts or orders;
• Social impact in the form of job creation and economic empowerment by indicating how many job opportunities will be created; Employment numbers must be stated by race, gender,disability,etc. for the project to be funded;
• Applicants should be actively involved in the day-to-day operations of the business. If applicant is employed full time, he/she may be required to resign from his/her employment and provide the Fund manager with proof of resignation;
• Necessary skills, experience or with the potential skill appropriate for the enterprise to succeed;
• Have a profit motive and clearly indicate how the loan will be repaid;
• Applicant’s projections must show growth prospect in order to be self-sustainable in future; and
• Brief profile and financial strength to settle projected receipts when due of the applicant’s customer(s) or sponsor(s)

Tourism Transformation Fund (TTF)

The TTF is a dedicated capital investment mechanism that was developed in collaboration with the National Empowerment Fund (NEF) to drive transformation in the tourism sector in a more direct and impactful manner. It aims to assist small and micro black-owned tourism enterprises to expand and grow with the goal of creating a new generation of black-owned, youth, women and community based tourism operators. All applications and approvals for this program are managed by the NEF.

The TTF provides a combination of grant funding, debt financing, and equity contributions to facilitate capital investment in the tourism sector by black entrepreneurs. 

Application requirements

New and existing black-owned enterprises are eligible for funding if they satisfy the following requirements:

• The enterprise must provide services to tourists as its direct clients.
• The project must have proven commercial viability and sustainability, as per the NEF funding criteria and due diligence.
• The enterprise must be majority (51%) black-owned.
• The enterprise must be black management controlled.
• Shareholders must be operationally involved in the business.
• The enterprise must be registered as a legal entity in South Africa in terms of South African law.
• The enterprise must either be a black-owned Exempted Micro Enterprise (EME) or black-owned Qualifying Small Enterprise (QSE), in terms of the Amended Tourism Broad-Based Black Economic Empowerment (B-BBEE) Sector Code.

Read: Everything you Need to Know about the Newly Launched Tourism Transformation Fund  

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Funding And Financial Assistance For SA Women Entrepreneurs Female entrepreneurs are growing in numbers, but without access to appropriate funding many start-ups will find it difficult to grow their businesses, regardless of whether there's a man or woman at the helm. Fortunately, access to funds for female entrepreneurs is improving thanks to government and private enterprises.

By Nicole Crampton • Feb 27, 2019

You're reading Entrepreneur South Africa, an international franchise of Entrepreneur Media.

In fact, The Small Enterprise Development Agency (SEDA) noted that 72% of micro-enterprises and 40% of small enterprises are currently owned by women. Government and private enterprises have put programmes and funds in place aimed at empowering the women of South Africa.

Starting a business is always a challenging objective, what makes it more challenging is trying to find funding to get your innovative idea of the ground.

Content in this guide

• The Isivande Women's Fund (IWF)
• Women Entrepreneurial Fund (WEF)
• Business Partners Women in Business Fund
• IDF Managers Funding
• Enablis Acceleration Fund
• The National Empowerment Fund (NEF)
• Absa Women Empowerment Fund
• The Special Projects and Programmes Unit (SPP)
• Women in Oil and Energy South Africa (WOESA)

Here are seven funds and financial assistance programmes as well as two resources for women entrepreneurs in South Africa.

1. The Isivande Women's Fund (IWF)

This government fund aims at accelerating women's economic empowerment by supplying cost effective, user friendly and responsive finance. The IWF offers support services to improve the success of your business.

It targets businesses that are starting up, expanding, rehabilitating, franchising and those that need bridging finance.

The aim of the fund is to create self-sustaining black- and female-owned businesses by offering primary financial and non-financial support.

How to Apply for IWF Funding

Female-owned companies need to meet the following criteria to be eligible:

• Your business must be operational for 6 months.
• Your business requires early stage capital for expansions and growth.
• 50% plus one share owned and managed by women.
• Your business requires potential growth and commercial sustainability.
• Your business must improve social impact with employment creation.

Contact IWF for funding

• Businesses that are eligible and need funding between R30 000 and R2 million can submit their application.
• Apply to the IWF through the IDF website or call +27 (11) 772 7945.
• Download application forms from www.idf.co.za .

2. Women Entrepreneurial Fund (WEF)

The Women Entrepreneurial Fund (WEF) was established by the Industrial Development Corporation (IDC) to support access to entrepreneurial funds for women business owners. R400 million has been set aside for women-owned businesses.

"We need to increase the extent to which women own and manage existing and new enterprises by improving their access to economic resources and infrastructure," says Meryl Mamathuba, Head of Development Funds Department at the IDC.

"This strategy is necessary to create viable opportunities that facilitate sustainable development and empowerment."

How to Apply for WEF Funding

Women-owned businesses must meet the following requirements to qualify for WEF funding:

• Businesses must have at least 50% women shareholding.
• Applications can be for start-ups, expansions or acquisitions.
• You'll need a solid, fundable business plan to start or expand within an identified market.
• Your business plan will need to include financial plans detailing: capital expenditure, working capital requirements, resourcing and operational involvement.
• You can also be a shareholder with a direct or indirect total net asset base of less than R15 million.

The following sectors are excluded from eligibility to the WEF:

• Franchising
• pure acquisitions
• construction
• import and export
• primary agriculture
• property development and consulting services such as recruitment and engineering.

Contact WEF for funding

You can find out more information and access the application form from the IDC website: http://www.idc.co.za/ .

3. Business Partners Women in Business Fund

The Business Partners Limited Women in Business Fund is focused on assisting women entrepreneurs with starting, expanding or purchasing an existing business. The Women in Business Fund is aimed at helping women start their entrepreneurial journey on an even footing.

The fund aims to:

• Increase access to finance for women entrepreneurs
• Invest in viable women-owned businesses
• Assist in the growth and expansion of women-owned businesses
• Contribute towards an increase in the number of successful women entrepreneurs and inspire young females in choosing entrepreneurship as a career option.
• Facilitate the creation of new jobs and decreasing unemployment and poverty among the citizens of South Africa.

Do You Qualify for Business Partners Women in Business Fund funding?

Women-owned companies need to meet the following criteria to be eligible:

• Businesses with a minimum of 50% women shareholding.
• Women entrepreneurs, who wish to start, expand or buy an existing business.
• Women in operations and management roles in the business.

How to Apply for Business Partners Women in Business Fund funding?

To apply for financing from the Business Partners Women in Business Fund, you will need to submit your business plan to one of its Fund advisors. You can also send your business plan to [email protected] or deliver it to any one of the fund's offices located country-wide.

Contact Business Partners Women in Business Fund for funding

If you wish to contact Business Partners for further information you are also welcome to submit a finance enquiry online [email protected] and one of their investment personnel will contact you.

4. IDF Managers Funding

The Identity Development Fund is a leading organisation in developing innovative financial products with the added benefit of being integrated with non-financial support. IDF is focused on unlocking value in the entrepreneurial sector through fund management services for institutional and corporate investors.

This fund is divided into multiple sectors, including:

• Management funds, which are targeted at entrepreneurial SME investment and development.
• Advisory services on strategy and implementation of a new project, which is targeted at the development of entrepreneurs.

Financial support is structured on a case by case basis and non-financial support is tailored to the needs of businesses during the various stages of growth, as well as the needs of the entrepreneur.

Do You Qualify for IDF Managers Funding?

Your business needs to meet the following criteria to be eligible:

• Black owned and managed (51% or more); or
• Black women and managed businesses (51% or more); or
• Black youth owned and managed (51% or more).

Investment criteria

IDF Managers are focusing on the following industries to help you diversify your portfolio:

• Manufacturing
• Wholesale and retail
• Agro-processing
• Mining and infrastructure related services
• Healthcare services
• Construction
• Transport and Logistics
• Other productive sectors
• Supply chain linked opportunities

Excluded industries

The following sectors are excluded from eligibility to the IDF Mangers Fund:

• Speculative real estate
• Non-commercial ventures (NPO)
• Businesses deriving revenue from gambling, liquor, military or illegal activities
• Businesses not socially responsible or adverse to the development of small businesses
• Primary farming
• Replacement finance
• Professional services

Contact IDF Mangers Fund for funding

To apply for capital, please visit www.idf.co.za and visit the 'Apply' page.

5. Enablis Acceleration Fund

The Enablis Acceleration Fund is a partnership between Enablis Financial Corporation SA (Pty) Ltd and Khula Enterprise Finance Limited. It is currently capitalised at R50 million.

Its aim is to improve access to SME early stage funding, while reaching out and supporting SME's that are developing in remote or rural areas with a view to creating new sustainable jobs that alleviate poverty and reduce unemployment.

This acceleration fund offers equity and debt instruments over loan periods no longer than 60 months.

Do You Qualify for Enablis Acceleration Funding?

Those eligible for this acceleration funding must meet the following criteria:

• South African SMEs that are accredited by the Enablis Entrepreneurial Network.
• Black and women entrepreneurs for start-ups and the expansion of a business.
• SMEs involved in all sectors, specifically ICT, transport, tourism, agriculture and services industry.
• SMEs that need working capital and or asset finance.

How to Apply for Enablis Acceleration Funding

To become a member and start on your journey with Enablis, visit the Join Enablis section at http://www.enablis.org/ and fill out the application form. You will be contacted by the appropriate chapter manager.

6. The National Empowerment Fund (NEF)

The National Empowerment Fund is a government agency that is set up to provide capital for black economic empowerment transactions.

Although this isn't specifically a female-focused entrepreneur fund, it does cater for black women and aims to empower them to become part of the entrepreneur society.

The NEF is a driver and a thought-leader when it comes to promoting and facilitating black economic participation through the provision of financial and non-financial support to black empowered businesses, as well as by promoting a culture of savings and investment among black people.

Do You Qualify for The National Empowerment Funding?

The main investment areas for this fund are construction, information and communication technology and media, as well as food and agro-processing sectors.

While these sectors will be favoured, it doesn't mean other sectors are not eligible for funding.

This fund is also specifically targeted at BEE candidates and consequently will not be available to other candidates.

How to Apply for the National Empowerment Fund

Whether your business is a start-up or an existing business, every applicant must fill in an application form once you understand the NEF requirements and identify products that suit you. The application serves as a screening document. After this you'll need to draw up a comprehensive business plan.

Contact the National Empowerment Fund (NEF)

For more information and insights into the fund:

• Call centre: 0861 843 633 or 0861 THE NEF
• Website: www.nefcorp.co.za
• Email: [email protected]

7. Absa Women Empowerment Fund

Absa has positioned itself to assist with the empowerment of females by introducing the Women Empowerment Fund. This loan offers a minimum of R50 000 to a maximum of R3 million with a maximum loan of five years and a monthly reducible overdraft.

The Women Empowerment Fund has been designed so that 70% of the loan is paid directly to suppliers and the interest rate is linked to the prime lending rate. The loan will also be structured according to the associated credit risk of the entrepreneur and their business.

If you're a businesswoman with the skills and expertise to make a success of your business and your loan application has been turned down because you did not have enough security, then you may be eligible for finance though Absa's Women Empowerment Fund, depending on your businesses' capability to repay the loan.

Do You Qualify for Absa's Women Empowerment Fund?

• You are a South African woman permanently residing in South Africa.
• Your business is a Small to Medium-sized Enterprise (SME) as defined by the Department of Trade and Industry (DTI) - including new start-ups, existing businesses, franchises and businesses switching from other banks, subject to Absa Credit approval.
• You do not qualify for a traditional business loan under normal banking criteria due to poor credit records (must be justifiable).
• The business's major shareholder (more than 66%) is fully involved in the day-to-day operation of the business.
• You have the skills and, or, expertise relevant to your business and the industry or sector.
• You have a well-researched business plan.
• Your business can show profitability through historical financials or a realistic cash flow forecast.
• You operate in an approved industry (ask ABSA's consultants about the sectors and industries that do not qualify).
• You require repeat loans, but only once the initial loan has been repaid in full.
• You need a loan of between R50 000 and R3 million with a maximum loan term of five years and monthly reducible overdrafts.
• You can show evidence of a revenue stream, i.e. letters of intent. (Purchase orders)
• The main business transactional account is held with Absa; no split banking is allowed.

The following conditions mean you will be unable to receive funding for ABSA's Women Empowerment Fund:

• Non-South African citizens
• Money raising ventures
• All trusts, public companies, section 21 companies
• Commercial and Residential property finance

How to Apply for Absa's Women Empowerment Fund

You will find more information and the application form on the website here .

To apply for funding complete the application form and bring it to your nearest Absa branch, along with the relevant supporting documentation listed on the last page of the application form.

Contact the Absa Women Empowerment Fund

For more information and enquiries into the fund contact ABSA on their support centre line: 0860 040 302.

Resources and support

Government and successful women entrepreneurs have realised there is a gap in education for female entrepreneurs and have started to create support programmes where female entrepreneurs can find out exactly what they need to be successful within a specific sector or business.

8. The Special Projects and Programmes Unit (SPP)

The Special Projects and Programmes Unit (SPP) within the Programme Analysis and Development (PAD) of SEDA, has an arm that focuses on projects specifically for women.

The SPP is supporting women so that they are hindered less by negative prevailing socio-cultural attitudes, gender discrimination or bias and personal difficulties.

The Special Projects and Programmes Unit is a platform where women can educate themselves about all the various aspects of becoming an entrepreneur. This resource also provides women with information on additional funding sources.

Contact the Special Projects and Programmes Unit (SPP)

For more information and enquiries into the programme:

• Name: National Information Centre
• Tel: 0860 103 703
• Email: [email protected]

9. Women in Oil and Energy South Africa (WOESA)

The WOESA Group of businesses is focused on facilitating and promoting business for, and enhancing, the participation of South African women in the oil and energy sector.

WOESA offers services to its member companies, organisations and individuals that focus on developing a knowledge base and building capacity amongst women through education and training.

The group facilitates access to business opportunities and conducts advocacy work for women, by assisting them in drafting legislation and policies. WOESA also aims to assist women with access to funding and investment.

WOESA provides specific services to enhance female participation in the oil and energy sector. These services include:

• Organising workshops and conferences
• Develop a knowledge base and make it accessible to its members
• Interface between members and business opportunities
• Networking, lobbying and advocacy
• Participation in drafting legislation and policies
• Facilitation of access to finance/funding for business opportunities for women in the oil and energy sector
• Developing and maintaining an interactive website with information for members only, containing news, legislation, articles, business opportunities, a calendar and more.
• Recruitment of women in the oil and energy sector.

Contact Women in Oil and Energy South Africa (WOESA)

• Phone: +27 (11) 027 6561
• Fax: 086 245 5102
• Email: [email protected]
• Website: woesa.com

Women are becoming a force to be reckoned with in the entrepreneurial world. To assist them in growing and reaching new markets, government and private business have created funds and resources designed for women.

These funds and resources will help women entrepreneurs to become more successful by providing them with both financial and non-financial support.

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Guide to Applying for NEF Funding in South Africa; Aspiring to empower oneself economically is a commendable endeavor pursued by many South Africans today. With the country’s strategic initiatives like the National Empowerment Fund (NEF) readily available, the journey towards economic empowerment becomes promising. Through the NEF, businesses harness the chance of sustainable growth and development. Educating oneself about what the NEF entails, concentrating on its focus areas and understanding the eligibility criteria is the first stride towards building a strong fund application.

Equally essential is the development of a persuasive business case that dovetails with the NEF’s objectives. Mastering the application process—which encompasses knowing how and where to apply, the timeframes involved, and the best strategies for this step—can significantly enhance one’s odds of approval. Beyond this, awareness of the follow-up actions post-application serves as a sturdy guide, whether the result is positive or otherwise.

Understanding NEF Funding

Understanding the national empowerment fund (nef).

The National Empowerment Fund (NEF) in South Africa is a government-funded agency established to promote and facilitate black economic participation. Providing both financial and non-financial support to black-empowered businesses, it works across a broad range of sectors. Its primary goal is to support black entrepreneurs and businesses to grow and thrive.

Focus Areas Funded by NEF

NEF funding focuses on businesses that operate in sectors that have high employment and value-add potential. Such sectors include manufacturing, information communication technology (ICT), tourism, agribusiness, construction, mining, and manufacturing-related services. NEF divides its funding operations into four funds: iMbewu Fund, uMnotho Fund, Rural and Community Development Fund and Strategic Projects Fund, all targeting different business needs and sectors.

Criteria for NEF Funding Applications

The NEF evaluates funding applications based on several criteria. The business must be operational, for-profit, and incorporated under South African law. It must also have a significant black ownership and management and a commercially viable business proposal. Moreover, the business should demonstrate its on-going commitment to job creation and localization.

Types of Assistance Provided by NEF

Depending on the fund, NEF provides different types of assistance. The iMbewu Fund provides funding for new ventures or business expansion. The uMnotho fund assists with acquisition, expansion or franchising of existing businesses. The Rural and Community Development fund helps enterprises that can contribute to rural development. The Strategic Projects fund is designed for early-stage businesses that are involved in strategic sectors.

To apply for funding, businesses need to submit a comprehensive business plan along with the application form on the NEF website. The application response time varies, but it is typically between 3 to 6 months. It’s also advisable to have a clear understanding of the fund that suits your business, making sure you meet the specific criteria for that fund. A strong application includes a viable business proposal, proof of black ownership or equity, detailed business financials, and a dedication to employment creation and social empowerment.

Take the time to understand the NEF funding process and ensure your business aligns with the mission of NEF. This is an important step in positioning your business for success in the application process.

Preparing Your Business Case

Identify business type and needs.

Begin by identifying what type of business or project you have and the exact need for funding. The National Empowerment Fund (NEF) in South Africa focuses on providing funding for businesses that aim towards black economic participation. The NEF has various funding products that cater to different needs – from rural community enterprises to expansionary projects. Analyse your business and tailor it to meet the NEF funding criteria.

Familiarise Yourself with NEF Criteria

Before applying, ensure that your business or project aligns with the NEF’s mandate and interests. You need to be familiar with their criteria which typically focus on Black Economic Empowerment and projects that improve the socio-economic condition of the local community. Maintaining business ethics and transparency in your operations is essential.

Prepare a Clear and Concise Business Plan

Using the NEF’s application guide, begin preparing a business plan. Your plan should showcase the profitability and sustainability of your venture. The NEF largely focuses on businesses that can assure job creation, growth, and value-adding possibilities. Present a comprehensive business plan that shows a clear path to profitability, scalability and community impact. Use understandable language and avoid excessive jargon.

Funding Request and Use

Articulate the exact funding amount you require and present a detailed plan on how you propose to use the funds. Provide a week by week or month by month breakdown of fund allocation. Be sure to give a detailed financial forecast showing that your business will generate enough profit to repay the loan. Also, discuss what security or collateral you could potentially offer.

Provide Necessary Documentation

Pay attention to the guidelines issued by the NEF for attaching supporting documentation. Key documents typically include a detailed business plan, cash flow projections, collateral (if any), detailed CVs of the management team, a certified ID copy of the applicant, and financial statements (if the business is already trading), among others.

Prepare for Potential Interview

The NEF may require you to attend an interview as part of the application process. Prepare thoroughly by understanding each aspect of your business or project plan. Be ready to answer questions regarding your funding usage, business model, target market, competition, and how your business aligns with the NEF’s mandate.

Remember, the NEF wants to see that you are committed to your business or project and have a passion for making a difference in your community. Be genuine in your responses and use this opportunity to highlight the unique aspects of your project that make it an excellent candidate for funding.

Application Process

Understanding the nef funding application process in south africa.

The National Empowerment Fund (NEF) in South Africa offers funding for startups and existing businesses for growth and support. The NEF offers multiple types of funding ranging from venture capital to asset finance, making it suitable for a variety of business needs.

Where and How to Apply for NEF Funding

To apply for NEF funding, you need to visit the NEF’s official website (www.nefcorp.co.za). Go to the ‘Funding Products’ section to understand the different kinds of funding schemes available and to identify the one best suited for your business needs. Once you have identified the appropriate funding option, click the ‘Apply for Funding’ tab. This will take you to the NEF application form.

The application form is comprehensive and requires details about the business, including details about the business owners, a complete business plan, financial details, and any supporting documents. Ensure these details are accurately provided and all necessary documents uploaded to avoid rejection or delays in the review process. Upon completion, the form should be submitted online through the same portal.

Typical Timelines

The timeline for NEF funding approval is typically between 3 to 4 months. These estimates may vary based on the completeness of the application and the complexity of the project. Applications are screened for completeness and feasibility in the first step. If approved, the application then enters due diligence before a final decision on funding is taken.

Post-Application Steps

Submitting your nef funding application.

After you have thoroughly completed and submitted your application for funding from the National Empowerment Fund (NEF) in South Africa, there are some important follow-up tasks and considerations.

Addressing Questions or Concerns from the NEF

Once your application is submitted, NEF may contact you with questions or concerns about your application. Be ready to provide additional documentation or explanation to support your application. Keep in communication with the NEF and respond promptly to any queries. Have your project estimates, business model, and projections readily available. Timely and accurate responses may expedite your application review process.

Tracking Your Application

It is advisable to keep track of your application status. Most of the time, you can check your application status online through the NEF portal. In case you face any difficulty using the online system, you can contact the NEF office via email or phone for updates.

Application Approval Process

If your application is approved, a commitment letter will be sent to you outlining the amount of funding, terms and conditions, and next steps. You might be asked to submit some further documents for due diligence purposes. Review these terms carefully and ensure you have a clear understanding of the repayment terms, interest rates, and any potential collateral or guarantees required.

Upon acceptance of the stated terms and conditions, a loan agreement will be drafted. You are advised to get legal advice before signing.

In Case of Application Rejection

If your application is rejected, NEF will provide you with a reason for the rejection. Take this feedback positively and use it to improve your application for future submissions. You can request more information on the reason for rejection to better understand what needs to be improved.

Remember, if initially rejected, you can always reapply for the funding with a revised proposal and supporting documents. In fact, it may be beneficial to consult with a business advisor or mentor to gain insight on improving your proposal.

In conclusion

Following up promptly with NEF, addressing queries thoroughly, staying proactive, and learning from any feedback are all essential post-application steps when applying for NEF funding in South Africa.

Ensuring that your business or project aligns suitably with the NEF’s mandate, investing in thorough preparation, and presenting your case effectively can considerably influence the acceptance of your funding application. The sure, steady path to success involves gaining an initial understanding of the NEF, designing a potent business case, comprehending the process of application, and familiarizing oneself with the probable steps after the application. By refining these components, you prepare yourself for potential challenges and opportunities, thereby boosting your entrepreneurial spirit. Success, after all, often goes hand in hand with diverse knowledge and resolution.

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