NEF to manage R200 mil COVID-19 Intervention Fund with the DTI
23 March 2020
The National Empowerment Fund (NEF) is managing a R200m COIVD-19 Intervention Fund on behalf of the Department of Trade and Industry (dti). The fund has been set up to assist manufacturers providing such items as:
- Medical Gloves and Accredited Masks
- Diagnostics and Accredited test kits
- Bulk supplies of disinfectants, sanitizers (hand and industrial) and wipes
- Nebulisers and nebulising agents
- Ventilators and filters
- Disposable visors, googles, gowns and aprons
- Packaging (bottles, caps, pumps, sachets etc)
- Drugs proven to combat the coronavirus
- Digital Body Thermometer
- Powered Air purifying respirator (PAPR)
- Sanitary pads, toilet and tissues paper
- Manufacturing of hospital beds
- Manufacturing of oxygen
- Related chemicals
Funds will be availed to black empowered businesses that can provide confirmation of valid and verifiable orders.
The funds can be utilised for the following:
- Working Capital Requirements, and/or
- Acquisition of Equipment.
The minimum loan amount will be R500,000 and the maximum is R10,000,000. And it will be structured as follows:
- 60 months repayment term,
- 12 months payment holiday (with 0% interest during this time),
- Repayment over the remaining period at a fixed interest rate of 2.5%.
- Be a registered legal entity in South Africa in terms of the Companies Act, 2008 (as amended); the Close Corporations Act, 1984 or the Co-operatives Act, 2005.
- Be a taxpayer in good standing with a valid tax clearance certificate at assessment as well as before the loan is disbursed.
- Be a current and registered supplier with retailers and other institutions in good standing or have a purchase order/contract/letter of intent.
- Be requiring working capital or funds to purchase machinery and equipment.
- The fund WILL NOT service any debt or help settle monies owed.
- Have greater than fifty percent (>50%) Black shareholding and management control. Must be directly involved in the day-to-day running of the operation and must have requisite expertise in the sector. (owned by black South Africans as defined by the Broad-Based Black Economic Empowerment (B-BBEE) Act)
- Have a project with a minimum requirement of R500 000 in working capital, machinery and equipment, and
- Must result in retaining or increasing direct employment/creating jobs.
Do you qualify? Find out now by doing a self check to see whether you meet all the necessary criteria:
If so, please see required company documentation to be submitted:
- NEF Application Form
- Company’s constitutional documents,
- Company Credit Check information
- Declaration on BEE status and size of business,
- Purchase order from applicant’s client,
- Summary of production in the last 3 months, and
- Cash flow projections
- Personal statement of assets liabilities
- Signed Indemnity form
Have you got all your documentation together? Use our Checklist to double check.
- All referrals are to be forwarded to Ms Ntombesizwe Tywabi on firstname.lastname@example.org