National Empowerment Fund (NEF) - Strategic Projects Fund

The Strategic Projects Fund was established to increase the participation of black people in early-stage projects. Although the NEF will consider projects in any industry sector, it tries to align sector selection based on the National Government's IPAP and New Growth Path guidelines. 

These are:

• Agriculture.
  
• Business process outsourcing (call centres, data storage centres and termination centres).
  
• Textiles.
  
• Mining, mineral processing and mineral beneficiation.
  
• Automobiles.
  
• Renewable energy and biofuels (solar, biomass, hydro, co-gen and wind).
  
• Plastics.
  
• Pharmaceuticals and chemicals.
  
• Forestry, pulp and paper.
  
• Infrastructure (telecoms, healthcare, roads, rail airports, dams and water).
  
• Manufacturing.
  
• Tourism (hotels, resorts, tourist attractions and leisure).
  

The fund provides venture capital finance (equity finance) that can be used as seed capital for the project and can be used for:

• Scoping and concept study.
  
• Pre-feasibility study.
  
• Bankable feasibility study.
  
• Financial closure.
  
• Construction phase.
  
• Technical completion.

Eligibility criteria

Projects need to comply with the following criteria:

• Creation of new manufacturing and industrial capacity.
  
• Creation of new jobs as opposed to replacement capital finance.
  
• Investment of new fixed capital into economically depressed areas or poverty nodes.
  
• Creation of an inclusive economy by increasing black South African participation in early-stage projects.
  
• Increase of RSA export-earning potential and reduce import dependency.
  
• An increase of co-investment and linkages with foreign direct investors.
  

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.