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The Nef Application Form: R250 000 - R75 Million
The Nef Application Form: R250 000 - R75 Million
The Nef Application Form: R250 000 - R75 Million
Applicant details
Name: Surname:
Identity number:
Residential address:
Postal address:
Telephone: Cellphone:
Fax: E-mail:
BEE classification A C I W
BUSINESS details
Years in existence:
Business tel. number:
Business fax. number: Type of industry:
TOTAL
* “Black people” are, African, Coloured and Indian natural persons who are citizens of the Republic of South Africa by birth or by descent
as well as natural persons who acquired citizenship by naturalisation prior to 27 April 1994.
Date of
original application: D D M M Y Y Y Y Resubmission
Reference number:
Product type: Entrepreneurship finance Franchise finance Acquisition finance
Procurement finance Rural and community development Project finance
Expansion capital Strategic project fund
The NEF will not consider applications that do not comply with all current RSA legislation pertaining to the operations of a business,
including but not limited to, all tax and corporate governance laws/principles. Where appropriate the NEF may report such cases
to the relevant authorities.
BEE PARTICIPATION IN: Current Future
Shareholding/ownership (%)
Management (%)
BEE Non-BEE
Details Male Female Total Male Female Total Grand Totals
Senior Management
Non-Managerial Staff
Temporary Staff
Grand Totals
BEE Non-BEE
BEE Non-BEE
BEE Non-BEE
BEE Non-BEE
DOCUMENT AND INFORMATION CHECKLIST
Existing Start-up
Business Business
2 Affidavit from members or directors that they are aware of the contents of the application form •
3 Three (3) year audited financials (Income Statement, Balance Sheet, Cash Flow Statement) •
Five (5) year financial projections (Income Statement, Balance Sheet and monthly Cash Flow
4 • •
Statement) with first year prepared on a monthly basis
Personal Statements of Assets and Liabilities of all the members or directors including those
6 • •
of spouses if person is married in Community of Property
9 Registration Documents and all the relevant legal documents relevant to the entity • •
12 Sale Agreement •
13 Franchise Agreement • •
14 Historical financials of other franchises that are similar in size and in similar locations • •
15 Indication from the Franchisor of how much a new Franchise in a similar location would cost • •
Indication of whether the lease agreement will be ceded to the new company after the sale or a
16 new lease agreement will be signed If lease is ceded, how long will it still run for before renewal? • •
New lease if it is a new franchise.
HISTORICAL PROJECTED/FORECAST
Year-3 Year-2 Year-1 Year-1 Year-2 Year-3 Year-4 Year-5
ASSETS
Fixed assets
Land and buildings
Motor vehicles
Furniture and fitting
Machinery and equipment
Other
Current assets
Debtors
Stock
Cash surplus/(deficit)
Total assets
EQUITIES AND LIABILITIES
Capital and reserves
Share capital
Shareholders’ loan
Retained income
HISTORICAL PROJECTED/FORECAST
Year-3 Year-2 Year-1 Year-1 Year-2 Year-3 Year-4 Year-5
Non-current liabilities
Term loan
Other loan
Current liabilities
Creditors
Bank overdraft loan
Total equity and liabilities
Debtors’ days
Creditors’ days
Head Office
Gauteng Province
West Block, 187 Rivonia Road, Morningside 2057, PO Box 31, Melrose Arch, Melrose North 2076
Tel: +27 (11) 305 8000 | Fax: +27 (11) 305 8001 | Call Centre: 0861 843 633 | 0861 (THE NEF)
applications@nefcorp.co.za (Funding) | info@nefcorp.co.za (General Enquiries)
KwaZulu-Natal Province
Smart X - Change Building, 5 Walnut Road, Durban, 4001
Tel: 0861 NEF KZN (0861 633 596) | kzn@nefcorp.co.za
Limpopo Province
Suite 8, Biccard Park, 43 Biccard Street, Polokwane 0699
Tel: 0861 NEF LIM (0861 633 546) | limpopo@nefcorp.co.za
Mpumalanga Province
Trust Building, 16 Brander Street, Nelspruit, 1200
Tel: 0861 NEF MPU (0861 633 678) | 013 754 9860 | mpumalanga@nefcorp.co.za
Mpumalanga
Gauteng
North West
Northern Cape
Eastern Cape
Western Cape
National Empowerment Fund Trust (established by Act 105 of 1998) IT: 10145/00. A member of the dti group | www.nefcorp.co.za | www.nefbusinessplanner.co.za
Page 7
Documents Required for NEF:
9. B-BBEE Certificate.
1. iMbewu Fund
2. uMnotho Fund
3. Rural and Community Development
Fund
4. Strategic Projects Fund
Funding Criteria
The NEF provides funds to black entrepreneurs and groups with the aim of facilitating access to finance in support of Broad-Based
BEE in terms of government legislation. The investment activities of the NEF are guided by an investment policy that seeks to
ensure that investments create real economic empowerment for black people without deviating from sound economic principles.
The business must comply with all relevant laws and regulations
There must be operational involvement at the managerial and board levels by black people
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Geographic location of the business is also important with the focus on rural or economically depressed areas encouraged
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.
Once your application has been received and found to meet the above conditions, it will then go through different stages for a
detailed commercial assessment.
The first point of contact for many potential clients, the PIU’s primary functions are to:
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b. Post-Investment Business Support Unit (POIU)
Black businesses need to be robust and self-sustaining for BB-BEE to succeed. Recognising this fact, the NEF established
structures to monitor its clients for risk and provide advice when needed. Although start-ups are inherently higher risk, the rewards
for success are jobs and increased capital for further start-ups.
Legal Compliance
Portfolio Management
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Knowledge Management
IT system development
To provide a superior customer relationship management channel for all NEF’s Investees
iMbewu Fund
This Fund is designed to support black entrepreneurs wishing to start new businesses as well support existing black-owned
enterprises with expansion capital. The Fund supports these entities by offering debt, quasi-equity and equity finance products with
the funding threshold ranging from a minimum of R250 000 to a maximum of R10 million.
1. Entrepreneurship Finance
The Entrepreneurship Finance product is aimed at providing startup and expansion capital to new and early-stage businesses that
are owned and managed by black people.
BEE applicants should be actively involved in the day-to-day management of the business
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Minimum black ownership of 50.1% is a requirement
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
Funding Instruments include term-loans, shares and other structures with ordinary share characteristics
2. Procurement Finance
The Procurement Finance product is aimed at assisting black-owned SMEs that have been awarded tenders or contracts by public
and private sector entities. The product’s main objective is to ensure that qualifying SMEs have the capacity to carry out the
contracts.
The key criteria of this product are:
The term of the loan will match the duration of the contract.
There must be active participation by black individuals in the operations of the business
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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 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
3. Franchise Finance
The Franchise Finance product is aimed at assisting black entrepreneurs who wish to acquire a franchise license. The product is
aimed at entrepreneurs who wish to start their own businesses by buying a franchise linked to a particular brand to reduce risks
associated with start-up businesses lacking a track record.
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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
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uMnotho Fund
This Fund is designed to improve access to BEE capital and has five products:
Acquisition Finance, Project Finance, Expansion Finance, Capital Markets Fund, and 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.
Funding ranges from R2 million to R50 million and details of the five products are provided below:
1. Acquisition Finance
2. New Venture Finance
3. Expansion Capital
4. Capital Markets
5. Liquidity and
Warehousing
1. Acquisition Finance
The key criteria of this product are:
BEE applicants seeking to fund equity purchases of between R2 million and R75 million in existing businesses
Focus on partnerships with existing management teams and other equity investors
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Active BEE involvement in investee companies
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
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.
Investment instruments can include a combination of debt, equity and mezzanine finance in support of BEE
NEF exposure to the project generally not to exceed 50% of total project costs
Debt funding raised from the market to match equity funding provided by NEF and other project sponsors
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The NEF investment horizon is 5 to 10 years
3. Expansion Capital
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.
Investment instruments can include a combination of debt, equity and mezzanine finance in support of BEE
4. Capital Markets
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.
All other key features are similar to the Acquisition Finance Fund.
Sectors funded:
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The key criteria of this product are:
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
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 reserves the right to oblige applicants to participate in the NEF mentorship programme
Rural and Community Development Fund offers the following financing products:
1. Acquisition
2. New Venture Capital
3. Expansion Capital
1. Acquisition
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This product was designed to cater for rural entrepreneurs or communities seeking to buy equity in existing rural and community
enterprises focusing on small to large ventures where partnerships between NEF, BEE parties or community entity and technical
partner is involved.
3. Expansion Capital
This product facilitates involvement and ownership by communities in projects promoting social upliftment of rural and community
projects using entities such as co-operatives and private companies.
A unit of the NEF established with a mandate to increase the participation of black people in early-stage projects.
Aligned to national Government policy.
Seeks competitive opportunity for the South African economy and the inclusion of black participation in opportunities at the
outset of projects, as opposed to doing so during equity closure.
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SPF's sector focus is informed by the government's strategies on industrial development through the dti's National
Industrial Policy Framework, the corresponding Industrial Policy Action Plans [IPAP] as well as the current government
economic growth strategy, the New Growth Path. The sectors identified based on the IPAP and the New Growth Path and
are listed as follows:
Agriculture;
Business Process Outsourcing [Call centres, data storage centres and termination centres];
Textiles
Automobiles
Renewable Energy and Biofuels [solar, biomass, hydro, co-gen and wind];
Plastics;
Manufacturing;
The list above is a guideline, and SPF will evaluate each project based on its economic merit and ability to deliver on the
Development Mandate.
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In the quest to expedite BB-BEE participation not only in small and medium enterprises and existing businesses through
acquisition of equity interest in well established businesses but also participation in new sector industries which have been
built from the ground, the NEF established the Strategic Projects Fund (SPF).
The SPF is at the centre of NEF’s investment strategy when it comes to securing the participation of black people in early stage
projects. Its core function is to provide Venture Capital Finance aimed at developing South Africa’s new and strategic industrial
capacity within strategic sectors identified by government as key drivers to economic growth.
It all began with a simple strategic question; “How is the NEF going to secure the participation and empowerment of black people in
strategic sector projects that are at an early stage?” This required NEF to develop a fund that would become a pioneer in providing
Venture Capital Finance that would seek to provide seed capital for feasibility studies.
This fund would embody NEF’s truest sense of achieving its developmental finance objectives, most importantly securing
the participation of black people.
To date that question is being answered and the NEF through SPF takes a leading role and has become the face of BB-BEE in
future strategic companies. Established in 2008 as a division within the NEF, the SPF’s mandate is to play a central role in early
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stage projects by identifying, initiating, scoping and developing projects that are in sectors identified by government as key drivers
to South Africa’s economic growth. These projects will be taken through 6-stages of project development.
The phases being the following: Scoping and Concept Study; Pre-Feasibility Study; Bankable Feasibility Study; Financial Closure;
Construction Phase; and Technical Completion.
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Strategic Projects Fund - Development and Economic Impact
1 2
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