National Empowerment Fund (NEF) - uMnotho Fund - Acquisition Finance

This Fund is designed to improve access to black entrepreneurs who wish to buy equity shares in established black and white-owned enterprises. The funding ranges from R2m to R75m and the NEF would expect to exit after four to seven years.

Eligibility criteria

• Projects or business must focus on assisting black entrepreneurs to acquire shares in medium to large companies.
  
• Projects or business must focus on partnerships with existing management teams and other equity investors.
  
• A minimum BEE ownership of 25.1% post NEF investment is required.
  
• BEE applicants should be actively involved in management.
  
• There must be active BEE involvement in investee companies.
  
• The NEF reserves the right to oblige applicants to participate in the NEF mentorship programme.
  
• Security should include a personal guarantee.

Application process

The NEF website has an outline on how to apply for funding. 

Please ensure that you download the Application Form as well as the personal statement of assets and liabilities form. The link can be found on the left-hand side of the How to Apply page.

The application form contains details of what they expect to see in your business plan.  Once you have all the documents prepared, you can submit your application at the nearest NEF office.