The municipality and NEF hosted a roundtable summit today to explain how entrepreneurs could benefit from the Enterprise and Supplier Development Fund.

The municipality contributed R20 million with the NEF committing R30 million for qualifying transactions at a 40:60 ratio.

The municipal contribution will be invested as follows:

• Investment per SME from R250 000, with the municipal portion limited to R5 million per transaction.

• The NEF will contribute a minimum of 60% of the funding requirement for each qualifying transaction with the 40% balance covered by the municipality.

• Repayable loans at a prime-linked interest rate to be determined by the NEF investment committees, with the municipality incurring a fixed interest rate of 5%.

• Investments is a maximum of five years.

• The fund will not invest in sin industries such as tobacco, alcohol and related products.

The roundtable presentation focused on various ways and models to close economic gaps.

NEF Executive for Strategy, Planning and Investments, Mr Setlakalane Molepo said the NEF has a solid funding track-record to support and grow black economic participation.

“In accordance with the partnership agreement concluded with the municipality, the NEF will establish, develop, implement and administer the local ESD SMME Fund, through which the NEF will assist the municipality to accelerate Broad-Based Black Economic Empowerment, by identifying fundable businesses and providing them a range of support interventions including mentorship, to enhance the chances of success,” Mr Molepo says.

The STLM ESD Fund is for the exclusive benefit of businesses that are located in the municipality, and who meet the following funding criteria:

• Majority ownership by black entrepreneurs.

• Black women participation.

• Job creation, an entity of any size of turnover, which is 51% or more Black-owned or Black-women owned.

• An entity of any size or turnover, which is 30% or more Black-owned or Black-women owned with a BEE status of between 1 and 3 as defined in the B-BBEE Codes of Good Practice.

• Commercial sustainability.

The NEF has achieved clean external audit opinions for 17 years running.

Since operational inception in 2004 the NEF has approved in excess R11 billion for black entrepreneurs countrywide, contributing to the creation of more than 103 299 jobs.

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