R75m set aside for Black SMMEs in the Northern Cape

As businesses across the world continue to do battle against the constraints imposed by the COVID-19 pandemic, relief is on the way for black-owned and managed SMMEs in the Northern Cape following the establishment of the Northern Cape Blended SMME Fund between the Provincial Government’s Department of Economic Development & Tourism (DEDAT) and the National Empowerment Fund (NEF), valued at R75 million.
 
The initiative will focus on enterprise and supplier development support to local SMMEs and provide concessionary funding across all sectors of the provincial economy.
 
DEDAT’s R30 million contribution will be utilised for non-refundable grants of up to R4 million per transaction, with 60% comprising a refundable loan portion from the NEF’s R45 million allocation.
 
A partnership for provincial economic growth “The collaboration with the NEF for the establishment of the Northern Cape SMME Blended Fund (NCSBF), comes at a most appropriate time in our quest to recover our economy from the harsh experiences of the pandemic. The intervention is directed at ensuring that enterprises that have viable and sustainable business plans receive the financial support required to propel their businesses to new heights and address the policy priorities facing our province in pursuit of our vision of developing a modern, growing and successful Province,” says the Hon. Premier, Dr Zamani Saul.
 
“This is a first in the province and therefore presents a massive opportunity to assist enterprises and entrepreneurs that wish to contribute to the economic development of the Northern Cape Province, while provincial beneficiaries have access to an additional source of ffunding in the province through the NEF products and services. We wish to invite other institutions to participate in this intervention by contributing to this fund and by doing so, the quantum of funding that will be available to SMMES across sectors will be increased,” he adds.
 
Says NEF CEO, Ms Philisiwe Mthethwa: “This partnership is a significant advance in the NEF’s quest to optimise our invested presence
in the Northern Cape, which is renowned for its contribution to the national economy through mining, agriculture and renewable energy industries, among others, yet the benefits historically have not spread among black entrepreneurs in the province. In line with the dtic’s IPAP polices, the Fund will support black entrepreneurs across all sectors, including agro-processing, tourism, petroleum, construction, manufacturing, transportation, retail, services, franchising, property, creative industries, 4th Industrial Revolution, printing, clothing, textiles and others”.
 
She says in addition to business finance for sustainable enterprises, the NEF will extend non-financial support to investees, comprising entrepreneurial training, incubation, monitoring and mentorship. “For this purpose the NEF has committed teams of investment professionals comprising engineers, Chartered Accountants, admitted attorneys and various others to help process applications for funding so that eligible black entrepreneurs may be able to take their businesses forward. In line with the legislated mandate of the NEF, the Blended SMME Fund will provide start-up and expansionary capital to majority black-owned and managed businesses to contribute to inclusive growth in the Northern Cape,” adds Ms Mthethwa.
 
Funding Criteria for the Northern Cape SMME Blended Fund
 
The NCBSF is for the exclusive benefit of businesses that are domiciled in the province which 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% (fifty one percent) or more Black-owned or Black-women owned;
  • An entity of any size or turnover, which is 30% (thirty percent) 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, and
  • Commercial sustainability.
 
A solid funding track-record to support black entrepreneurs In accordance with the partnership agreement concluded in March 2021, DEDAT has partnered with the NEF “to establish, develop, implement and administer the Northern Cape Blended SMME Fund, through which the NEF will assist the Department in the acceleration of Broad-Based Black Economic Empowerment within the Northern Cape province”.
 
Over the years the NEF has built a strong reputation in managing enterprise and supplier development support through partnerships with various entities across the public and private sectors, and these include Government departments and entities such as the Department of Tourism, the Western Cape Department of Economic Development and Tourism, the Limpopo Department of Economic Development, Environment and Tourism as well as Transnet Port Terminals, while in the private sector these are Pick ‘n Pay, Engen, BP South Africa, Shell, Nissan, Bakubung Platinum Mine, Sishen Iron Ore Community Development Trust and Daimler Chrysler SA.
 
As a partner trusted by many, the NEF has achieved clean external audit opinions for 17 years running. Since operational inception in 2004 the NEF has approved in excess R10.9 billion for black entrepreneurs countrywide, supporting in excess of 103 000 jobs.
 
Downloads
 
pdf

Joint Media Statement NC BlendedSMME Fund 12 April 2021 FINAL (002)

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Brochure_NEF_NCBlended-SMMEFund

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Presentation - NEF in the Northern Cape April 2021

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APPLICATION DOCUMENTS
 
-> Northern Cape SMME Blended Fund (NCSBF)
-> Other Funding Opportunities
 

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Ms Thandi Modibela
Senior Manager: Corporate Services
Tel : 082 373 8656
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