National Empowerment Fund (NEF) - Rural and Community Development Fund - New Venture Capital

The Rural and Community Development Fund was designed to promote economic growth in the rural economy. The aim is for rural communities to form co-operatives or register a business. The funding can be in the form of a loan or an equity investment. In the case of an equity investment, the NEF expects to exit after five to ten years.

New Venture Capital

This Fund is aimed at assisting rural entrepreneurs and co-operatives to establish sustainable new ventures in the agri-sector including forestry, tourism, processing, etc. They focus on medium-sized new venture projects with total funding requirements of between R1m and R50m.

Sectors that the NEF will fund include: 

• Agri-processing and manufacturing.
• Eco-tourism.
• Forestry and fisheries.
• Commercial property.
• Aqua and marine culture.
• Non-farm activities (rural based)

Eligibility criteria

• Projects or business 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.
• Minimum black ownership of 25.1% is a requirement.
• Joint ventures between black and non-black partners to support skills transfer.
• The business should be able to repay NEF’s investment.
• The business must have a compelling and sustainable business case.
• The NEF reserves the right to oblige applicants to participate in the NEF mentorship programme.

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.