EMPOWERMENT
Loan tied up as empowerment fund awaits ministers’ approval
Preapproval requirements and preconditions are preventing the National Empowerment Fund (NEF) from drawing down on a R500m Industrial Development Corporation (IDC) facility. This is while the organisation, which provides funds for black-owned businesses, says it needs more funds to fulfil its mandate. NEF CEO Philisiwe Mthethwa told Parliament’s trade and industry committee on Tuesday the fund required a cash injection of at least R540m for it to implement its 2018-19 strategy. A 2016 decision for the fund to become an IDC subsidiary is yet to be executed. Trade and Industry Minister Rob Davies, who has oversight of the fund, and Economic Development Minister Ebrahim Patel, who has oversight of the IDC, still have to approve these transitional arrangements. Mthethwa told MPs the R500m facility secured from the IDC for the 2017-18 financial year remained undrawn due to the outstanding conditions. These included obtaining a Cabinet endorsement for the fund and the IDC to be combined; ...
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