Empowerment fund looking for R1bn capital injection for financing BEE
The NEF is in the process of becoming an arm’s length subsidiary of the Independent Development Corporation
The National Empowerment Fund (NEF) is in discussions with the Public Investment Corporation (PIC) and the Unemployment Insurance Fund (UIF) for a possible R1bn capital injection to fund its work financing black economic empowerment. This is in addition to the R500m facility approved by the Industrial Development Corporation (IDC). The NEF, which has been lobbying for recapitalisation for several years, is in the process of becoming an arm’s length subsidiary of the IDC. NEF chairperson Rakesh Garach said in the NEF’s annual report, tabled in Parliament, that "has been in discussions with the PIC to secure a R1bn facility from the funds the PIC manages on behalf of the UIF". The UIF is supportive of the initiative because the NEF’s work contributes to job creation. NEF CEO Philisiwe Mthethwa said in the report that it required an annual allocation of R2.5bn over the next five years — a total of R12.5bn — "to be able to address the sizeable demand for funding among black entrepreneur...
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