The National Empowerment Fund (NEF), which is to become a wholly owned subsidiary of the Industrial Development Corporation (IDC), is looking to its future parent company to inject R10bn into its operations over the next five years. The government announced this week that Trade and Industry Minister Rob Davies and Economic Development Minister Ebrahim Patel had agreed to the NEF’s incorporation by the IDC "to meet the considerable demand for funding by black entrepreneurs". "The merger will promote increased broad-based black economic empowerment with a specific focus on promoting black industrialists," a government statement said. In a briefing to Parliament’s select committee on trade and international relations NEF CEO Philisiwe Mthethwa said the NEF needed an annual allocation of R2bn for the next five years and it would be looking to the IDC to provide this bridging finance. While its 2016-17 activities were fully funded, the NEF would need a cash injection of at least R500m to...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.