NEF iMbewu Fund


Location : South Africa
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The iMbewu Fund is a funding scheme provided by the National Empowerment Fund (NEF) who's  role is to support Broad-Based Black Economic Empowerment (B-BBEE).

 

NEF 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.

 

Funding is delivered through the following products:

  • Entrepreneurship Finance, 
  • Procurement Finance
  • Franchise Finance.

 

1. Entrepreneurship Finance:

This product is aimed at providing start-up and expansion capital to new and existing businesses respectively that are owned and managed by black people

 

The key criteria of this product are:

  • BEE applicants should be actively involved in the day-to-day management of the business
  • Minimum black ownership of 50.1% is a requirement
  • Business and/or industry experience by black entrepreneurs is also considered
  • 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
  • The business should be able to repay NEF’s investment
  • Funding Instruments include term-loans, shares and other structures with ordinary share characteristics
  • NEF funding is charged at prime linked interest rates
  • Business must have a clear value-add with a sound business case
  • Maximum NEF funding is R10 million
  • The NEF will exit from the investment in 5 to 7 years

2. Procurement Finance:

This 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.
  • NEF funding is generally limited to R10 million
  • There must be active participation by black individuals in the operations of the business
  • 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
  • NEF funding is charged at prime linked interest rates
  • The NEF reserves the right to oblige applicant to participate in the NEF mentorship programme
  • NEF will support contracts awarded by reputable entities
  • 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:

This 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.

 

The key criteria of this product are:

  • The NEF prefers to fund well established franchise concepts
  • Active management involvement by BEE parties is required
  • Minimum BEE shareholding of 50.1% is a requirement
  • 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
  • NEF funding generally limited to R10 million
  • NEF will fund SME; using mainly debt
  • NEF funding is charged at prime linked interest rates
  • The NEF will exit from the investment in 5 to 7 years

 

How to apply

Download Application Form

 

Please note:

  • Required documents are listed in the application form.
  • Regrettably, if you do not submit all of these documents together there will be a delay in processing your application form.
  • From receipt of the application to approval stage the process can take 6 to 8 weeks.
  • Our process period is 3 to 4 months on receipt of the application up to  disbursement stage.

 

Send Applications to: [email protected]

 

Contact us

For enquiries visit or contact your nearest office:


Gauteng Province (Head Office)
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)

Email (Applications): [email protected]

Email (General Enquiries): [email protected]


Eastern Cape Province
7b Derby Road, Berea, East London 5241
Tel: (043) 783 4200 | 0861 NEF ECP (0861 633 327)

Fax: 0861 ECP NEF (0861 327 633)
Email: [email protected]


Free State Province
34 Fountain Towers, Corner Zastron and Markgraaf Street, Westdene, Bloemfontein, 9300
Tel: (051) 407 6360 | 0861 NEF FSP (0861 633 377)

Fax: 0861 FSP NEF (0861 377 633)
Email: [email protected]


KwaZulu-Natal Province
Smart X - Change Building, 5 Walnut Road, Durban, 4001
Tel: (031) 301 1960 | 0861 NEF KZN (0861 633 596)

Fax: 0861 KZN NEF (0861 596 633)
Email: [email protected]


Limpopo Province
Suite 8, Biccard Park, 43 Biccard Street, Polokwane 0699
Tel: (015) 294 9200 | 0861 NEF LIM (0861 633 546)

Fax: 0861 LIM NEF (0861 546 633)
Email: [email protected]


Mpumalanga Province
Trust Building, 16 Brander Street, Nelspruit, 1200
Tel: (013) 754 9860 | 0861 NEF MPU (0861 633 678) | 013 754 9860

Fax: 0861 MPU NEF (0861 678 633)
Email: [email protected]


North West Province
32B Heystek Street, Sunetco Office Park, Ground Floor, Rustenburg, 0299
Tel: (014) 523 9220 | 0861 NEF NWP (0861 633 697)

Fax: 0861 NWP NEF (0861 697 633)
Email: [email protected]


Western Cape Province
Suite 2818, 28th Floor, ABSA Centre, 2 Riebeek Street, Cape Town 8001
Tel: (021) 431 4760 | 0861 NEF WCP (0861 633 927)
Fax: 0861 WCP NEF (0861 927 633) 

Email: [email protected]


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