Nef BP2015

BUSINESS PLAN
2015/16
N Empowerment Fund
Approval of the Business Plan
Recommended by the CEO for Endorsement by the Accounting

endorsement Authority
Name: Philisiwe Mthethwa Name: Rakesh Garach
Signature:: ---------------------------
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Rank: CEO Rank: Acting Chairman
Date: 30 / 01 / 2015 Date: 30 / 01 / 2015
Business Plan for 2015/16 2

NationalEmpowermentFund
AcronymsandAbbreviations
AMD : Asset Management Division
APP : Annual Performance Plan
Approved: Final committee approval obtained, legal agreements not signed
B-BBEE: Broad-Based Black Economic Empowerment
BFS : Bankable Feasibility Study
Commitments: Legal agreements signed. (Deals may have been approved in

current and previous financial periods.) All Conditions Precedent may
not have been met yet.
CP : Construction Phase
CPs : Conditions Precedent
DFIs : Development Finance Institutions
Disbursements: Total cash advancements made against all approved deals (deals
may have been approved in current and previous financial periods)
subject to all Conditions Precedent having been satisfied by the
investee.
Drawdowns: Advances made against disbursed facilities
EC : Eastern Cape
EIA : Environmental Impact Assessments
ETF : Exchange Traded Funds
FC : Financial Closure
FMD : Fund Management Division
FS : Free State
GDP : Gross Domestic Product
IDC : Industrial Development Corporation
IPAP : Industrial Policy Action Plan
IPF : Industrial Policy Framework
IRR : Internal Rate of Return
KZN : KwaZulu-Natal
KPI : Key Performance Indicator
MBO : Management Buy-Out
BusinessPlanfor2015/16 3

MOU : Memorandum of Understanding
MP : Mpumalanga
NC : Northern Cape
NCOP : National Council of Provinces
NEF : National Empowerment Fund
NIPF : National Industrial Policy Framework
PFMA : Public Finance Management Act
PFS : Pre-feasibility study
PIU : Pre-Investment Business Support Unit
POIU : Post Investment Business Support Unit
RMC : Risk and Portfolio Management Committee
ROI : Return on Investment
SAIs : State-Allocated Investments
SME : Small and Medium Enterprise
SOCE : State Owned Commercial Enterprise
SPF : Strategic Projects Fund
TC : Technical Completion
WC : Western Cape


TableofContents
1. Chairman’sNote............................................................................................................................. 6

2. StrategicOverview.......................................................................................................................... 8
3. RiskManagementaroundtheNEF’sStrategicObjectives............................................................27
4. HumanResourceRequirements................................................................................................... 34
5. FinancialPlan............................................................................................................................... .35
6. BusinessPlanMatrix..................................................................................................................... 39
7. IndicatorProfiles........................................................................................................................... 44
AppendixA:FinancialProjections........................................................................................................ 59

EĂƟŽŶĂů EmƉŽwermeŶƚ FuŶd
1. Chairman’s Note
The targets presented herein presume that additional funding will be sourced in time for the
beginning of the 2015/16 financial year and have been deliberated on and approved by the
Board of Trustees.
The Board has decided to focus on entrenching the implementation of the current strategy
as well as ensuring that set targets for the strategic period are met. There are therefore no
new strategic objectives or projects that have been introduced since the last approved APP.
The Board has focused on discussing how the NEF will ensure that in all levels of its
activities there is a common theme of building Black Industrialists.
Critical risks currently facing the NEF relate to Recapitalisation, Sustainability and
Credit/Asset quality. Various initiatives are in progress to deal with the Recapitalisation and
Sustainability risk. The NEF made a Medium Term Expenditure Framework (MTEF)
application with the National Treasury in July 2014 however no allocation was made to the
fund. The NEF is also looking to tap into the financial resources of development finance
institutions as a solution to its liquidity shortfall. The NEF is in discussions with the IDC to
obtain a bridging funding for further approvals while the process of exploring an optimum
business combination structure with the IDC ensues. Various working groups consisting of
IDC and NEF staff have been established to implement this process. A Board sub-committee
has also been established to monitor this process.
In addition the following actions are being implemented to ensure the sustainability of the
organisation:
Re-examining the current funding instruments and developing a
guideline on moratoriums to improve on cash-inflows.
ƵƐŝŶess WůĂŶ fŽƌ 2015/16 6

x Increase focus on funding expansion finance type transactions that do
not require long moratoriums or funding instruments that delay
repayments to the NEF.
x Re-examining the current pricing model used by the organisation.
With the progress made in obtaining bridging funding from the IDC, the NEF believes that it
is geared to deliver targets as set in this Business Plan for the 2015/16 financial year.


2. Strategic Overview
2.1. Vision
Our vision is to be the leading provider of innovative transformation solutions for an
economically inclusive South Africa. We seek to be the lead financier of B-BBEE
investments in the DFI space.
2.2. Mission
The National Empowerment Fund is a catalyst of Broad-Based Black Economic
Empowerment in South Africa.
We enable, develop, promote and implement innovative investment and transformation
solutions to advance sustainable black economic participation in the economy.
2.3. Values
The NEF has implemented a values & culture programme which has been developed,
communicated and implemented through various workshops with staff. The values are:
Ethics – Choosing to do what’s right over what’s wrong
Motivation – Being self-driven and passionate in what we do
Performance – Achieving results timeously, accurately and performing to create an impact
Ownership – Owning our actions, our decisions and consequences of our actions
Worthy – Creating an environment where we make a valued contribution and where we feel
valued for our contribution
Excellence – Consistently exceeding expectations and being the best in everything we do
Respect – Treating everyone fairly and with dignity and demonstrating humility

2.4. Strategic goals and objectives
The NEF’s key strategic outcome-oriented goals against which performance is reported are
to:
1. Provide finance to business ventures established and managed by black people.
2. Invest in black empowered businesses that have high employment creating
opportunities.
3. Support the participation of black women in the economy.
4. Facilitate investment across all provinces in South Africa.
5. Encourage and promote savings, investment and meaningful economic participation
by black people.
6. Advance black economic empowerment through commercially sustainable
enterprises.
7. Establish the NEF in the South African economy as a credible and meaningful DFI.
8. Establish the NEF as a sustainable DFI.
In order to achieve these objectives the NEF is structured to deliver against this mandate by
performing the following core activities:
Fund Management, which comprises:
o The Venture Capital & Corporate Finance Division, which is comprised of
Umnotho Fund, the Strategic Projects Fund and the newly established
Women Empowerment Fund.
o The SME & Rural Development Division, which consists of Pre-Investment
Unit, Imbewu Fund, Rural & Community Development Fund and Regional
Offices.
o General Counsel, which provides legal support and post-investment support
services to the invested portfolio including turnaround, workout and
restructure services. The General Counsel also looks after the newly

merged Socio-economic Development and Asset Management Unit through
which the NEF provides support to communities, aims to foster a culture of
savings and investment among its beneficiaries, as well as promote
Enterprise Development.
2.4.1. Empowerment Dividend
The NEF seeks to measure and assess its impact not only on the basis of financial return,
but in accordance with what is referred to as the Empowerment Dividend which is the socio-
economic impact of the NEF’s investment activities, as provided for in the Broad Based
Black Economic Empowerment Act, that has to manifest itself in measurable impact results
over and above only financial return.
Elements of the Empowerment Dividend are as follows:
Contribution to Broad Based Black Economic Empowerment – the NEF
assesses each transaction against the results of the B-BBEE scorecard, before and
after funding, to ensure that each transaction contributes to the advancement of B-
BBEE.
Participation by black women – the NEF emphasises the empowerment of women
by providing for an additional weighting for black women participation.
Job Creation – Contribution towards employment creation and the number of jobs
created per rand invested or jobs sustained through investment in expansion type
activities.
Investment in Priority Growth Sectors – The number of investments facilitating
black ownership and control of existing and new enterprises in the priority sectors of
the economy as identified by the IPAP and the National Development Plan.

Geographic Spread - Geographic spread of investments and contribution towards
increased economic activity across all provinces, particularly in areas of regional
economic disadvantage.
Investment Return - The return that each Fund realises on capital employed after
impairment.
2.5. Products and Services
In pursuit of this mandate the NEF provides financial and non-financial support to investees.
The financial support provided comprises the provision of innovative financing products to
black entrepreneurs and black empowered businesses through the five funds of the NEF,
which are Imbewu Fund, Rural & Community Development Fund, Umnotho Fund, Strategic
Projects Fund and the newly established Women Empowerment Fund.
The non-financial support provided comprises pre-investment services, together with post-
investment services which include mentorship and training for investees. The NEF’s Socio-
Economic Development and Asset Management Unit focuses on fostering a culture of
savings and investment among its beneficiaries by offering investor education seminars
around the country as well as by promoting enterprise development.
2.5.1. Financial Support
The NEF provides funding to black empowered businesses and entrepreneurs from
R250 000 to R75 million across a range of sectors, for venture capital, start-up, expansion
and business acquisition purposes. The NEF differentiates itself not only with a focused
mandate for growing black economic participation, but by also assuming a predominantly

equity-based risk to maximise the Empowerment Dividend in that it places little if no reliance
on the credit strength of its applicants with the emphasis being on the investment risk of the
funding advanced. The investment risk associated with transactions that apply for funding is
mitigated against the evaluation of the entrepreneur, their ability to make sound commercial
decisions which are also in support of national priorities and government policy such as that
contained in the National Development Plan and in support of targeted investments as
identified in the dti’s IPAP. The work of the NEF therefore straddles and complements other
DFI’s by allowing the organisations to work in close collaboration in the promotion of B-
BBEE with the intervention of the NEF in many cases as the provider of equity funding
allowing for the unlocking of the bulk of the funding required from other sources.
NEF funding is provided via two divisions viz.
1. SME & Rural Development Division, which comprises two funds, viz.
a. iMbewu Fund; and
b. Rural & Community Development Fund.
The division is also comprised of:
a. the Pre-Investment Unit,
b. the regional offices.
2. Venture Capital & Corporate Finance Division, which is comprised of:
a. Umnotho Fund, and
b. Strategic Projects Fund
c. Women’s Empowerment Fund
Details about each fund are outlined below:

2.5.1.1. Imbewu Fund
The iMbewu Fund seeks to address market failures experienced by black-owned SME’s. The fund has three products, viz. Franchise,
Procurement/Contract and Entrepreneurship products. An overview of the products is outlined below.
Franchise Contract/Procurement Entrepreneurship
Description For securing franchise licenses For SMEs that have secured contracts, orders To provide capital to SMEs that seek to provide product or
or short-term bridging finance service to a specific niche market
Instruments Term Loan Term Loan Structured loans
Bridging Loan Equity instruments
Revolving Credit
Debtor Finance
Reverse Factoring
Suspensive Sale
Leasing
Amount R250k – R10m R250k – R10m R250k to R10m (for start-up and expansion)
R1m to R10m (for acquisition capital)
Investment period Up to five years but can go up to 7 years in Matched to the duration of the Up to 7 years
some instances contract
Criteria Client must have been approved by the There must be a viable contract or Commercial viability
franchisor order Secured markets
NEF will only do business with credible The contract must be awarded by a Clear value proposition
franchisors with strong track record credible entity with strong track NEF will not support acquisition of businesses that
Site must have been identified record are making losses
Operational involvement Operational involvement Operational involvement
Pricing Prime linked Prime linked Prime linked

2.5.1.2. Rural and Community Development Fund
The Rural and Community Development Fund facilitates community involvement in projects by supporting the B-BBEE Act objectives of
empowering local and rural communities. In accordance with the B-BBEE Act, it aims to increase the extent to which workers, cooperatives and
other collective enterprises own and manage business enterprises.
Acquisition New Venture Capital Expansion Capital
Investment threshold R1m to R50m R1m to R50m R1m to R50m
Trigger for RCDF participation Co-operatives, community groupings arranged as Co-operatives, community groupings arranged as Trust Co-operatives, community groupings
Trust or any legal entity, and workers trust or any legal entity, and workers trust. arranged as Trust or any legal entity, and
workers trust.
Principal goal To cater for rural entrepreneurs or communities To assist rural entrepreneurs and co-operatives and To facilitate involvement and ownership by
seeking to buy equity in existing rural and communities with equity contribution towards communities in projects promoting social
community enterprises establishment of sustainable new ventures in agri-sector. upliftment
Types of companies/projects Focus on small to large ventures where Medium sized new venture projects with total funding Rural and community projects using entities
partnerships between NEF, BEE parties or requirements of between R1m and R50m such as co-operatives and private
community entity, and technical partner is involved companies
Types of instrument Debt, equity, quasi equity and preference shares Debt, equity, quasi equity and preference shares Debt, equity, quasi equity and preference
shares
Black equity threshold Minimum of 50.1%
Pricing Prime (+/-) Empowerment Dividend or Development Impact Influenced
Terms of Investment and 5 to 10 years Up to 10 years Up to 10 years

other terms Clear exit Strategy Total project equity 40%
NEF Exposure 50% of project costs

2.5.1.3. Umnotho Fund
This Fund is designed to improve access to BEE capital and has six products: Acquisition Finance, New Ventures Finance, Expansion Finance,
Capital Markets Fund, Liquidity and Warehousing and Property. These products provide capital to black-owned and-managed enterpr ises,
black entrepreneurs who are buying equity shares in established white-owned enterprises, new ventures finance and BEE businesses that are
or wish to be listed on the JSE. Funding ranges from R2 million to R75 million. The Fund pricing is to achieve returns that are in line with the
level of risk taken by the NEF. Details of the five products are provided below.

Acquisition Finance New Venture Finance Expansion Capital Capital Markets Liquidity & Warehousing Property Fund
Investment R2 million to R75million R5 million to R75 R5 million to R75 R2 million to R75 R2 million to R75 million R5 million to R75
threshold million million million million
BEE applicants seeking BEE parties seeking to Funding provided to This product invests in This product assists BEE This product seeks
to fund equity participate in medium- entities that are already BEE enterprises, shareholders who need to to cater for BEE
purchases of between sized greenfields black-empowered, but particularly those owned sell a portion or all of their groups seeking to
R2 million and R75 projects with total seek expansion capital by black women that shares (as minority stakes buy equity in
million in existing funding requests of to grow the business. seek to list on the JSE in unlisted firms are hard existing property
businesses between R10 million or its junior AltX market. to sell). Also acquires and businesses;
and R200 million. The Umnotho Fund will temporarily warehouses develop new
Product also help listed BEE these shares before on- property ventures;
purpose companies to raise selling them to new BEE and to provide
additional capital for shareholders, and expansion finance
expansion. refinances BEE to entities that are
shareholdings where already empowered
existing financing
structures are costly
and/or inefficient.

Medium to large Medium-sized Active BEE Medium to large Medium to large Medium to large
companies greenfields projects involvement in companies companies companies
Focus on with total funding investee companies Focus on Focus on partnerships Alignment with
partnerships with requests of Security to include partnerships with with existing priority sectors
existing between R10 personal existing management teams Active BEE
management teams million and R200 guarantees and management teams and other equity involvement in
and other equity million. security over and other equity investors investee
investors BEE-specific business assets. investors Active BEE companies
Active BEE financial Active BEE management BEE financial
involvement in contribution management participation contribution on
investee companies assessed on a participation Active BEE a case-by-case
BEE financial case-by-case basis Active BEE involvement in basis
contribution on a NEF exposure to involvement in investee companies Security to
Product case-by-case basis the product investee companies BEE financial include personal
criteria Security to include generally not to BEE financial contribution on a guarantees
personal exceed 50% of the contribution on a case-by-case basis
guarantees total project costs case-by-case basis Security to include
Proven Security to include personal guarantees
management personal guarantees
experience within
the consortium
Active BEE
involvement in
investee
companies
Security to include
personal
guarantees

Investment instrument Investment instrument Investment instrument Investment instrument Investment instrument can Investment
can include a can include a can include a can include a include a combination of instrument can
Types of combination of debt, combination of debt, combination of debt, combination of debt, debt, equity and include a
instrument equity and mezzanine equity and mezzanine equity and mezzanine equity and mezzanine mezzanine finance. combination of debt,
finance. finance. finance finance. equity and
mezzanine finance.
Black Minimum of 25.1% Minimum of 25.1% Minimum of 50.1% Minimum of 25.1% Minimum of 25.1% Minimum of 50.1%
equity
threshold
Pricing
Influenced by Empowerment Dividend or Development Impact. Debt linked to prime rate and equity based on target IRR
Typical investment Typical investment Typical investment Typical investment Typical investment Typical investment
horizon of 4 to 7 years horizon of 5 to 10 horizon of 4 to 7 years horizon of 4 to 7 years horizon of 4 to 7 yeas horizon of up to 10
Terms of
years. years on senior
Investment
debt and up to 15
and other
years on mezzanine
terms
debt and equity
instruments

2.5.1.4. Women Empowerment Fund
This is a newly established fund aimed at accelerating the provision of funding to businesses
owned by black women.
Finance to be provided from R250,000 to R75 million across all the existing NEF product
suite. Depending on type of funding the horizon of funding provided ranges between 4 and
10 years. Minimum of 51% black female ownership. In addition, the women have to be
operationally involved at the managerial and board levels. Other empowerment dividend
pillars are also considered
2.5.1.5. Strategic Projects Fund
The Strategic Projects Fund will facilitate the acquisition of equity in large strategic projects
where the NEF assumes the role of BEE partner.
The fund aims to play a central role in early stage projects by identifying, initiating, scoping
and developing projects that are in sectors identified by government as the key drivers to
South Africa’s economic growth. These projects will be taken through 6-stages of the project
development phases.
The phases being the following:
Scoping and Concept Study; Pre-Feasibility Study; Bankable Feasibility Study; Financial
Closure; Construction Phase and Technical Completion.

Through the Strategic Projects Fund, NEF will facilitate B-BBEE in the following ways:
Warehouse equity for B-BBEE in early stage projects at valuations with little or no
premium paid to access the projects. This enables NEF to distribute its warehoused
equity to B-BBEE at lower valuations once the project is operational;
Take early stage risk on behalf of black people as early stage projects have higher
execution risks compared to operational companies. The NEF will assume most of
the financing risk and devise instruments to carry or transfer equity to B-BBEE once
project fatal flaws have been mitigated;
Manage the project and venture capital finance structuring complexities as it is more
complex and difficult to raise capital for new ventures as compared to Umnotho
finance deals where valuations can be ascertained based on historical performance
and risks are clearly understood;
Enable project promoters to focus on making projects bankable and operational by
giving the B-BBEE status as NEF is the only DFI gazetted as a B-BBEE facilitator;
Once the initial project risks have been reduced, the NEF will transfer its
shareholding to selected B-BBEE groups through a transparent process.
2.5.2. Non ϐ busness support
The NEF provides non-financial support through three of its business units, specifically:
The Socio-Economic Development and Asset Management unit performs two
functions. Firstly, it structures retail savings products, manages the national investor
education programme and is responsible for the Enterprise Development Fund. The
unit also facilitates the establishment, operationalisation and monitoring of B-BBEE
structures like Workers’ Trusts, Community Trusts and Co-operatives.
The Pre-Investment Unit and regional offices, which provide the first line of non-
financial assistance to prospective investees and support to applicants seeking

funding. In addition Pre-Investment Unit provides entrepreneurial development
training.
The Post-Investment Unit, which manages the investment portfolio and assists
investees with mentorship and training.
A Turnaround, Workouts & Restructuring Unit is aimed at strengthening
interventions and support to investee businesses that are experiencing operational
and financial challenges. This team works together with the entrepreneurs in
assessing and re-structuring the financial and/or operational aspects of the
businesses.
2.5.2.1. Investor Education
The NEF’s Investor Education campaign is planned to reach localities across the country,
providing information necessary to make prudent savings and investment decisions. The
initiative has covered all nine provinces during the past two years.
2.5.2.2. Socio Economic Development
The Socio-Economic Development and Asset Management Unit provides social
interventions in deals which have broad-based groups or communities as beneficiaries. The
unit provides the following services to these beneficiaries:
Foster a culture of savings and investment through its Investor Education
programme.
Promote and facilitate Enterprise Development.
Educate beneficiaries about roles and responsibilities in business.

Empower groups as fellow shareholders, on fiduciary duties and promotes the
understanding of equity ownership.
Facilitate workshops with communities who will be receiving NEF funding, in order to
assist with the understanding of the transactions and to manage community
expectations.
Ensure that schemes (i.e. trusts and co-operatives) are formally registered.
Identification of opportunities for beneficiaries in transactions and develop market
linkages.
Development of social plans and plans on how funds will be used by the group.
Assist with compliance issues e.g. AGM’s and corporate governance matters.
The Unit also assists with securing grants for NEF investees, and provides assistance with
the identification of beneficiaries where these have not been identified.
2.5.2.3. Enterprise Development Fund
The NEF Enterprise Development Fund (NEF ED Fund) which was launched in July 2011 is
aimed at providing a sustainable and meaningful solution to corporates who are committed
to the Enterprise Development code. The opportunity entails private sector enterprises
making their enterprise development contributions to the NEF ED Fund, and the NEF
utilising these contributions to co-finance the NEF’s investments in enterprise development
beneficiaries with the objective of facilitating the development, sustainability and/or financial
and operational independence of beneficiaries. The NEF ED Fund will be under the
administrative and management authority of the NEF and will benefit from the NEF’s
institutional and fund management infrastructure, support and investment expertise. The
NEF will ensure that investments are appropriately targeted, have a high chance of success
and sustainability, and that the investments assist in the development and growth of
sustainable, black empowered, small and medium enterprises.

Through the NEF ED Fund, the Measured Entities will receive enterprise development
credits in compliance with Code 400 whilst still retaining focus on their core business, be
able to develop sector value chains through ED, whilst the beneficiaries could tap into an
additional source of funding. Most importantly, the NEF ED Fund would be able to make
more investments designed to enable meaningful black economic participation, working in
partnership with Measured Entities in identifying opportunities for enterprise development.
2.5.2.4. Pre Investment Business Support
Applicants for funding may be excellent entrepreneurs, but often struggle to navigate the
necessary application procedures and to manage their businesses and this is often evident
during the initial assessment of the funding application. The NEF therefore assists with
funding advice, business planning and general assistance to help ensure that applications
are of sufficient quality to complete all steps in the application process.
As the first point of contact for many potential clients, the PIU's primary functions are to:
Provide information on NEF products and procedures;
Control and assist in drawing up funding applications;
Identify applications that will qualify for funding;
Keep clients informed on the progress of their applications;
Advise applicants and assist with drawing up business plans.
The NEF currently faces a number of challenges in delivering on its mandate, including the
quality of applications received, the level of skills of the target market, the high level of
impairments currently being experienced within the funds and the limited ability of applicants
to supply own contributions or collateral.

The NEF’s Pre-Investment Unit has developed the Entrepreneurship Development Strategy
in order to better assess and support the development of black entrepreneurs. This
intervention will in addition to the above challenges also explore additional interventions
aimed at addressing the issue of limited own capital, which many black entrepreneurs face.
The intervention comprises:
Entrepreneurship Assessment Tool (which is in the process of being revised);
The provision of training services;
The provision of interventionist support for entry-level entrepreneurs;
Provision of incubation services.
The Pre-Investment Unit has implemented a business incubation model in order to support
the development of aspirant black entrepreneurs. The NEF realises the value and impact
that can be made through incubation and has established partnerships with various
incubation service providers.
2.5.2.5. Post Investment Business Support
Black empowered businesses need to be robust and self-sustaining for B-BBEE to succeed.
In recognition of this fact, the NEF has established structures to monitor its clients for risk
and provide advice when needed. Although start-ups are inherently higher risk, the rewards
for success are jobs and increased capital for further start-ups.
The Post Investment Unit manages this process of client monitoring and support. The unit is
responsible for:
Monitoring and preparing management information on investments
Administering investment contracts
Coordinating mentorship programmes

Facilitating investment valuations with fund managers
Conducting strategic reviews
2.5.2.6. Turnarounds, Workouts and Restructuring Unit
The Turnarounds, Workouts and Restructuring Unit (TWR) has been established in order to
work closely with investees whose businesses are in distress. This unit will play a more
hands-one role in detecting challenges and identifying possible solutions.
The TWR looks after NEF clients that are experiencing financial difficulties in meeting their
obligations towards the NEF, and those that are in financial distress. The TWR works closely
with various NEF departments (POIU, Legal, Finance, the Funds) as well as external parties
(mentors, consultants, external legal counsel) to conduct its core activities of turnarounds
and workouts in an effort to normalise the distressed accounts.
TWR is responsible for acting timeously on non-performing loans to minimise the risk of
financial losses to the NEF and to reduce the risk of business failures. The optimal
restructuring solution is informed by early analysis of the cause and effect of distress, the
formulation of appropriate interventions and timeous approval and implementation of
corrective measures.
The primary objectives of TWR are to:
Perform restructuring analysis, develop and submit restructuring strategies for
approval and execution, and monitor the implementation of the approved
restructuring.
Restructure the company while preserving the NEF’s BEE mandate and reduce the
significant impairments and / or write-offs.
Advise on restructuring proposals where early warning signs of distress are evident.

x Initiate suitable turnaround solutions and turnaround strategies, to minimise the high
risk clients (subject to such clients displaying economic viability).
x Attend to business rescue proceedings and advice on the acceptance of the
business rescue plan
x Manage/ monitor the non-performing loans until these loans have been rehabilitated
and handed back to POIU or until the non-performing loans have been transferred to
Legal.

3. Risk Management around the NEF’s Strategic Objectives
The realisation of the strategic objectives presented by the NEF may be affected by the
following key risks as ranked in the NEF’s organizational Key Risk Register:
1. Recapitalisation Risk: The risk that the NEF will not be able to raise sufficient
capital to fund the NEF’s short to medium-term investment and operating
activities.
The NEF has lifted the moratorium on funding new transactions as the NEF’s available cash
position has improved since when the moratorium was initially put in place. Without an
injection of new capital in the medium term, the NEF will however run out of capital to
finance new transactions going forward. The lack of adequate capital will also negatively
impact on the NEF’s ability to follow through on participation interest or equity options for
transactions within the NEF’s Strategic Projects Fund. This will have a negative impact on
the achievement of the NEF’s mandate and the ability to transform the economy.
Various initiatives are underway regarding resolving the issue relating to the recapitalisation
of the NEF. The NEF is looking to tap into the financial resources of development finance
institutions as a solution to its lack of funding. The NEF is in discussions with the IDC to
obtain additional funding to enable the NEF to continue fulfilling its mandate. In addition a
project has commenced to implement an optimum business combination structure with the
IDC. A team of individuals consisting of IDC and NEF staff are working on this process and
they report to a project steering committee. The steering committee reports to key
stakeholders regarding the progress of this project. An NEF board sub-committee has also
been established to monitor this process.

2. Sustainability Risk: The risk that the NEF will not be financially sustainable due
to erosion of the capital base and the NEF not having adequate capital to fund
planned programs and meet medium term cash requirements.
The NEF was not allocated capital via the recent budget process and was required to
sustain itself over the strategic planning period (three years) out of current capital and
internally generated portfolio returns.
This risk will materialise should the current capital not be prudently managed and the
investment portfolio becomes significantly impaired in the absence of future funding being
allocated to the NEF or the NEF not being able to source additional capital.
Due to increase in the level of approvals, the risk that the NEF approves transactions that it
does not have the available funds to follow through.
The current funding instruments (i.e. Equity, Shareholders loans etc.) used to structure
transactions and the use of moratoriums is also negatively impacting on the NEF’s cash-
flows.
The actions implemented to mitigate against the recapitalisation and sustainability risks
include:
x Close monitoring of the portfolio by the Post Investments Unit.
x Intervention by the Restructure and turnaround unit for businesses that are in
distress.
x Re-examining the current funding instruments and developing a guideline on
moratoriums to improve on cash-inflows.
x Increase focus on funding expansion finance type transactions that do not require
long moratoriums or funding instruments that delay repayments to the NEF.
x Tracking available cash against commitments made on a monthly basis.

x Engagements with the dti and National Treasury regarding funding requirements.
x Exploring option of obtaining bridging funding from the IDC.
x Entering into an optimum business combination structure with the IDC.
3. Credit Risk: The risk of exposure to high credit risk investments and poor
quality of the invested portfolio
The NEF is mandated to intervene in the economy through the provision of funding to black
owned enterprises which, due to past economic imbalances, may be of a higher credit risk.
This risk is exacerbated by the recent poor economic conditions that may impact on funded
businesses and their cash flows leading to the inability to honour loan repayments and
possible defaults on loans to the NEF. Due to the high risk mandate of the NEF, this risk is
rated as one of critical exposures facing the NEF.
Internally, the risk that the assessment processes of the NEF not being able to inform
appropriate investment decisions does exist as does the risk of not collecting on amounts
due and not being able to timeously identify distressed investments which may be able to be
rescued. The risk of funding the wrong “jockey’s” impacting on the performance of
investments and the portfolio also exists.
Inadequate controls mitigating this risk may negatively impact on the performance and
quality of the portfolio.
The controls introduced to attempt to mitigate this risk include the appointment of skilled and
experienced management and staff in the fund management sector, managing the mix of
start-ups versus later stage investments within investment policies, due diligence and
approval processes, monitoring and credit collection processes and enhancing financial and
pricing models to adapt to most recent experiences and developments in the development
finance environment. A turnaround, workouts and restructure unit has also been established

to deal with clients that are currently in distress. This unit implements relevant interventions
to prevent businesses that are in distress from failing.
A new Impairment model has been developed and implemented.
4. Business/Market Risk: The risk that changes in external market conditions
have a negative impact on the viability of funded transactions
The investment portfolio of the NEF consists of business in the commercial environment that
are susceptible to normal business risks of economic environment, fluctuations in commodity
prices and foreign exchange rates amongst other variables. The current volatile local
economic environment has led to relatively lower GDP growth rates. In addition household
personal finances are under financial strain due to an increase in living costs. This is
negatively impacting on business conditions and has placed strain on some of the clients in
the portfolio.
The NEF portfolio is arguably more susceptible to these variations given the nature of the
businesses being supported i.e. early stage business, inexperienced entrepreneurs, geared
balance sheets and hence not as able to absorb the impact of these fluctuations as much as
more established businesses.
In evaluating transactions, much work is performed during the due diligence phase on the
potential impact that economic changes would have on the business risk of the proposed
transaction. In addition the financial models of these business applicants are further stressed
for potential scenarios where several economic variables change in order to ascertain the
ability of the forecasted cash flows to accommodate these changes. Where necessary
funding structures are adjusted in order to provide some lee-way for this business risk to be
accommodated. The Post Investment unit also closely monitors the portfolio to identify
potential issues before they materialise.

5. Information Technology Risk
The risk that the IT systems not meeting user’s requirements or that the system is not fully
utilized could impact on the efficiencies within the organisation and reliability of information.
The risk within this area of the organisation impacts on all areas of the organisation.
Various initiatives have been implemented to improve the controls within this area i.e. IT
governance structure, including an IT steering committee, which has been established and is
now responsible for overseeing implementation of IT projects. An exercise to identify
possible issues with the existing system was completed and a report has been issued. Due
to the business combination process that is currently underway, management felt that it
would not be prudent to incur significant costs at this point and thus the implementation of
the second phase for enhancements have been placed on hold. Focus is however being
placed on certain quick wins as well as providing additional training to users to ensure that
users are aware of all of the functionalities within the system.
6. Mandate Implementation: The risk of the NEF not being able to meaningfully
contribute towards its mandate
The mandate of the NEF is clearly set out within the NEF Act. The risk does however exist
that in executing the mandate, the NEF does not achieve the desired impact in advancing
B-BBEE.
The contribution to this risk could be exacerbated through management and staff potentially
not fully understanding the operational implementation of the mandate of the NEF, are
inadequately skilled or lack the capacity and thus may be too thinly spread to consistently
monitor adherence to mandate in all activities of the NEF.
The NEF undertakes a rigorous recruitment process in order to ensure that staff is
adequately skilled to perform their jobs. Staff is also required to attend a detailed orientation

process, as well as the staff strategic planning workshop, in order to ensure that staff
understand the mandate of the NEF and their role in contributing towards the achievement of
the mandate.
This risk is further mitigated through the development of funding products individually aligned
to the overall strategy and mandate of the NEF. These products each have their own specific
criteria which have to be met in order for applicants to be eligible for funding. Furthermore,
specific strategies is formally developed in response to areas of continuing market failure
e.g. the SME strategy. Each transaction is currently being assessed against a measure of
impact termed the NEF Empowerment Dividend. This will further create a consistent base
against which each application will need to be assessed for meeting the mandated criteria
for funding. Due to the current moratorium on funding new transactions, the achievement of
the NEF’s mandate has negatively been affected.
Inability to secure future funding will negatively impact on the ability of the NEF to implement
its mandate. Various actions, as indicated in item 1 above, are being implemented to deal
with the future funding requirements of the NEF.
7. Reputation risk
The NEF has recently experienced certain negative media coverage and it is not certain as
to what is causing this. Various initiatives are in progress to engage with stakeholders and
the media to address issues regarding negative media coverage. In addition a brand audit is
currently in progress to determine what the perception is regarding the NEF’s brand by all
stakeholders.
8. People Risk
The uncertainty due to the recapitalisation process led to an increase in resignations during
the financial year ending 31 March 2014. The level of resignations has decreased from the

prior year and vacancies for critical positions have been filled. The resignations may
however increase, should there not be certainty with regard to the future capitalisation of the
NEF.
9. Business Combination Risk
The delay in implementation of the Business combination process with the IDC could
negatively impact on the future sustainability of the NEF due to lack of adequate funds to
fund future transactions and the negative impact on the reputation of the NEF. The
inappropriate management of the business combination process could also lead to loss of
staff. A project steering committee consisting of all relevant stakeholders has been
established to monitor the progress of implementation of the business combination
process. This includes the development of communication plans regarding the business
combination process, for staff and external stakeholders such as media, clients and other
stakeholders. In addition regular reporting is also provided to key stakeholders and a
change management process is being implemented.

4. Human Resource Requirements
4.1. Personnel information
Staff numbers have reduced by 14% (from 168 to 146) between 31 March 2013 and
31 March 2014 as a result of uncertainties regarding the recapitalisation and job security.
The NEF would need to increase capacity in order to meet its strategic objectives, and grow
staff numbers to around 183 during 2015/16 and to 195 thereafter. The staffing complement
is made up of mainly professionals. Personnel cost remains a significant contributor to total
operational expenditure, which is an acceptable norm in Development Finance
Institute/Private Equity environments, where there is a high dependence on professional
staff. The ratio of support to line staff is 1:2.
Audited outcomes Revised WƌŽũĞĐƟŽŶƐ over the MTEF

ƐƟŵĂƚĞ
OccƵƉĂƟoŶ 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
Number of Number of Number of Number of Number of Number of
posts Įůůed oŶ posts Įůůed oŶ posts Įůůed oŶ posts Įůůed oŶ posts Įůůed oŶ posts Įůůed oŶ
fƵŶded fƵŶded fƵŶded fƵŶded fƵŶded fƵŶded
esƚĂďůishmeŶt esƚĂďůishmeŶt esƚĂďůishmeŶt esƚĂďůishmeŶt esƚĂďůishmeŶt esƚĂďůishmeŶt
ůĞŵĞŶƚĂƌǇ 2 2 2 2 2 2
ŽccƵƉĂƟŽŶs
ĚŵŝŶŝƐƚƌĂƟǀĞ 8 8 8 8 8 8
ƌĞůĂƚĞĚ
ĚŵŝŶŝƐƚƌĂƟǀĞ 34 30 35 35 35 35
ŽĸĐe ǁŽƌŬĞƌƐ
&ŝŶaŶciĂů ĂŶĚ 70 56 79 81 93 93
ƌĞůĂƚĞĚ
ƉƌŽĨĞƐƐŝŽŶĂůƐ
DĂŶĂŐĞƌƐ 40 37 30 40 40 40
SĞŶiŽƌ maŶĂŐĞƌs 13 12 14 16 16 16
Head Žf 1 1 1 1 1 1
ĚĞƉĂƌƚŵĞŶƚͬĐŚŝĞĨ
ĞǆĞĐƵƟǀĞ ŽĸĐĞƌ
dŽƚĂů 168 146 169 183 195 195
Detailed staff numbers are provided in Appendix A.

5. Financial Plan
The NEF’s strategic objectives are detailed in section 2 of this Business Plan, and detailed
Financial Projections are provided in Appendix A.
5.1. Projections of revenue, expenditure and borrowings
Revenue projections include interest on loans and investments, raising /origination fees
(newly introduced over the strategic period), interest on cash in bank and dividend income
from listed and unlisted shares. The interest on loans is projected at rates based on the
pricing policies of each fund and the interest rate projections over the entire investment
portfolio. Most of the NEF’s loan instruments are priced against the prime lending rate. Fees
are projected at 1% of a third of funds disbursed each year.
Interest on cash in bank is projected at between 5% and 6%, which are the projected rates
achieved on monies invested with the South African Reserve Bank. A further margin of 3%
was applied to calculate potential finance costs.
Dividend income is particularly difficult to predict/project as these are linked to different
dividend policies of the NEF’s investee companies. The NEF has a portfolio of listed and
unlisted investments, the majority of which relates to the MTN shares allocated to the NEF
by Government. The dividend projections included in the overall revenue is therefore based
our best estimate of what the NEF could receive each year.
The Net Asset Value of the NEF has increased from R2.1 billion in 2005/06 to just over
R6 billion as at 31 March 2014. This has largely been a factor of appreciation in fair value of
the NEF’s listed investment portfolio and retained earnings.
Total Expenditure (ie including funding for non-financial services offered by the NEF) has
increased in line with increased activities and targets. Operational expenditure includes
general & administration and employee costs, and apart from office rental and salaries, are

all budgeted for from a zero base. The overall methodology applied when budgeting for
operational expenditure is largely linked to the organizational targets and activities. The
NEF has implemented operational expenditure reductions across all business units which in
the past year have mainly entailed a self-imposed headcount moratorium that has since
evolved to a targeted critical role recruitment drive since the lifting of the funding moratorium.
The NEF also embarks on various mandate related projects (ie non-financial services) for
which specific budget allocations are required. To this end a further R 16m per annum has
been budgeted for over the next three years. Some of the projects that the NEF is and will
be involved in are Investor Education road shows, non-financial support to NEF investees
(mentorship, entrepreneurship development as well as governance training).
Over the strategic period, the efficiency ratio (based on total costs) is being managed down
to the upper end of the intended long term range of 54%-58%. In the event that the NEF
gets transfers from the dti to fully fund the non-financial services we currently undertake, the
efficiency ratio would peak at 60% in the first year and be managed down to about 54% by
the end of the strategic period. The NEF has therefore made an application to the dti in that
regard.
The current and required capitalisation of the NEF will allow it to move forward and make a
meaningful contribution in achieving its mandate, with its investment approvals projected to
reach the R10 billion milestone by the end of the strategic period.


5.2. Asset and liability management
The NEF, as a Schedule 3A entity under the PFMA, is required to operate fully on the basis
of not budgeting for a deficit. Investment activity is funded out of cash balances and thus all
liabilities will at all times be off-set by cash balances.
Excess cash is managed through a cash management process where short term cash is
invested in call accounts of varying maturities at two approved banks to meet short term
cash requirements and excess cash with the South African Reserve Bank in terms of the
requirements of the PFMA.
5.3. Cash ϐ ecns
Please refer to Appendix A.
5.4. Capital expenditure prects
Annual capital expenditure allocation is mostly related to replenishment of existing capital
expenditure items such as computers, furniture and office equipment. The average budget
allocation for capital expenditure over the three year period is R6 million.
5.5. Infrastructure plans
The NEF does not directly fund infrastructure for itself or the country as part of its mandate
though there may be an element of infrastructure funding provided through projects funded
by the Strategic Projects Fund that is a specific requirement of that project and in line with

national targeted strategic sectors. In addition, the NEF is involved in assisting with funding
for the PRASA and AREVA infrastructure development initiatives.
5.6. Dividend policies
The NEF does not have a dividend policy with respect to any surplus reported. Surpluses
are retained following a section 53(3) application to the National Treasury each year in order
to meet further capitalisation needs of the NEF since it is not currently on the MTEF and thus
not a recipient of any government allocated funding.

6. Business Plan Matrix
Targets for 2015/16 have been reviewed based on discussions at Management, Executive and Board level. The targets have been updated to
agree to the revised APP relating to the strategic period 2015/16-18 as tabled.
Performance Baseline Quarterly Milestones

Annual
Indicator/ Performance Annual
Strategic Targets Annual Targets
Measure by as at Targets for
Objective 2013/14 for 2014/15
Funding 31 March 2015/16
Programme 2014 1st 2nd 3rd 4th
ADVANCING BBBEE
1. Provide 1.1. Value of R418 million R 175 million R718 million R1 120 million R186 million R551 million R872 million R1 120 million
finance to deals
business approved by
ventures the NEF
established (R million)
and managed
by black
people. 1.2. Value of R303 million R 220 million R 619 million R980 million R145 million R419 million R721 million R980 million
new
Commitments
(R million)
1.3. Value of R636 million N/A R650 million R880 million R95 million R357 million R630 million R880 million
new
Disbursements
(R million)
1.4. Value of R25.8 million Secure at R23 million R33 million Nil R11million R22million R33million
new Enterprise least 5 new secured secured
Development contributors
contributors
secured.


Annual
MAXIMISING THE EMPOWERMENT DIVIDEND
2. Invest in 2.1. Number of Funding Support at Support 4 000 Support 5 415 Support 585 new Support 2 203 new Support 3 877 new Support 5 415 new
black jobs expected approvals are least 1 850 new or existing new or existing or existing job or existing job or existing job or existing job
empowered to be projected to new or jobs job opportunities opportunities opportunities opportunities
businesses supported or support 3 621 existing jobs opportunities
that have high created. jobs (2 661
employment new and 960
creating existing).
opportunities.
3. Support the 3.1. 25% 25% 30% 35% 30% 32% 34% 35%
participation Percentage of
of black portfolio (For the year) (For the year) (on total active (on total active
women in the disbursed portfolio) portfolio)
economy. owned by
black women 21%
(on total
active
portfolio)


Annual
4. Facilitate 4.1. Total The Maintain the Increase the Increase the Increase the Increase the overall, Increase the overall, Increase the overall,
investment collective proportionate proportionate overall, collective overall, overall, collective collective value of collective value of collective value of
across all increase in value of the value of the value of the collective value of the the portfolio invested the portfolio invested the portfolio invested
provinces in percentage of portfolio portfolio portfolio invested value of the portfolio invested in EC, NC,WC, KZN, in EC, NC,WC, KZN, in EC, NC,WC, KZN,
South Africa portfolio by invested in invested in in EC, NC,WC, portfolio in EC, NC,WC, NW, Mpumalanga, NW, Mpumalanga, NW, Mpumalanga,
value invested the listed EC, NC,WC, KZN, NW, invested in KZN, NW, FS and Limpopo by FS and Limpopo by FS and Limpopo by
in EC, NC,WC, provinces has KZN, NW, Mpumalanga, FS EC, NC,WC, Mpumalanga, FS 5% overall. 5% overall. 5% overall.
KZN, NW, increased Mpumalanga, and Limpopo by KZN, NW, and Limpopo by
Mpumalanga, from 50% to FS and 5% overall. Mpumalanga, 5% overall.
FS and 51%, which Limpopo as FS and
Limpopo was driven by at 31 March Limpopo by
new 2013. . 5% overall.
investments
in the Eastern
Cape, Free
State,
Northern
Cape,
Mpumalanga
and Limpopo.
OPTIMISING NON-FINANCIAL SUPPORT
5. Encourage 5.1. Number of Four Investor 32 Investor 32 Investor 32 Investor 8 Investor 16 Investor 24 Investor 32 Investor
& promote seminars held Education Education Education Education Education Education Seminars Education Seminars Education Seminars
savings, across the seminars seminars per seminars per year seminars per Seminars
investment & country. held in year year
meaningful Limpopo.
economic
participation
by black
people


Annual
6. Black 6.1. Number of Six training 5 training 18 training 18 training 5 training 10 training sessions 15 training sessions 18 training sessions
economic Business sessions held sessions per sessions per year, sessions per sessions with an with an average with an average with an average
empowerment Today Training year, with an with an average year, with an average score of score of 60% score of 60% score of 60%
is advanced sessions average score of 60%
average score 60% required in required in the post- required in the post- required in the post-
through provided score of 60% required in the
commercially required in post-training of 60% the post-training training assessment training assessment training assessment
sustainable the post- assessment required in the assessment
enterprise training post-training
assessment. assessment
6.2. Number Total of 64 60 referrals 75 referrals for 10 2 entrepreneurs in 4 entrepreneurs in 7 entrepreneurs in 10 entrepreneurs in
of entrepreneur for incubation incubation per entrepreneurs the final the final incubation the final incubation the final incubation
entrepreneurs s referred to per year, and year, and 5 in the final incubation stage. stage. stage. stage.
who incubation 5 entrepreneurs in incubation
successfully partners. entrepreneur the final stage.
complete s in the final incubation stage.
business incubation
incubation stage.
6.3. Number of N/A N/A 18 Corporate 18 Corporate 5 Corporate 10 Corporate 15 Corporate 18 Corporate
Corporate Governance Governance Governance Governance Governance Governance
Governance New target (New) Training sessions Training Training sessions Training sessions Training sessions Training sessions
Training for
sessions
NEF
investees.
7. Establish 7.1. Brand N/A N/A Achieve brand N/A N/A N/A N/A N/A
the NEF in audit survey awareness of
the South findings Survey Survey 34% Survey
African performed performed performed
economy as a every every every second
credible and second year second year year
meaningful
development
finance
institution.


Annual
FINANCIAL EFFICIENCY & SUSTAINABILITY
8. Establish 8.1. The 21% 19% 18% 19% 18.5% 18% 18%
the NEF as a Percentage of provisional
sustainable portfolio impairment is
DFI. impaired 22.27% on
the loans
portfolio and
19.94% on
the entire
disbursed/
investment
portfolio.
8.2. Target The 8 – 10% 8% - 10% 9% - 10% 9% - 10% 9% - 10% 9% - 10% 9% - 10%
ROI before provisional
impairments return for the
(to be year is 8.8%
reviewed on the loans
annually) portfolio and
10.1% on the
entire
portfolio.
8.3. 87% 72.5% 75% 80% 80% 80% 80% 80%

Collections
ratios

7. Indicator ϐ
Performance Indicator 1.1: Value of deals approved by the NEF
1. Indicator title Value of deals approved by the NEF
2. Short definition Total value of deals approved by the NEF
3. Purpose/importance Indicates the level of financial support approved by the NEF’s

investment committees
4. Source/collection of data Funds; CRM system
5. Lead/ coordinating Funds

agency
6. Method of calculation The information is captured on the CRM information. The final
values and reports are reviewed and signed off by Fund Managers
and Divisional Executives.
7. Calculation type Cumulative – for the year
8. Baseline R418 million

(for the year ended 31
March 2014)
9. Data limitations Reflects the total value of funds committed by the NEF to investees.
In some instances, deals may not make it to actual funding stages
due to negotiations, conditions precedent not being met or lapsed
facilities.
10. Quality assurance Review by Fund, Finance department and Strategy & Planning unit
strategy
11. Indicator responsibility Fund Managers

PerformanceIndicator1.2:ValueofCommitments
1. Indicator title Value of Commitments made by the NEF
2. Short definition Total value of Commitments
3. Purpose/importance Indicates the total cash which the NEF has agreed to advance to
investees in legal agreements signed.
4. Source/collection of data Finance department; Funds; CRM system

agency
6. Method of calculation The information is recorded by the Legal Department and the Funds
as part of the legal/ disbursement process.

March 2014)
9. Data limitations No known limitations.
10. Quality assurance Submitted and reviewed by the Legal Department.

strategy
11. Indicator responsibility Legal Manager


PerformanceIndicator1.3:ValueofDisbursements
1. Indicator title Value of Disbursement made by the NEF
2. Short definition Disbursements
3. Purpose/importance Indicates the total cash which the NEF has advanced to investees
4. Source/collection of data Finance department; Funds

agency
6. Method of calculation The information is recorded by the Funds and Finance department
as part of the financial management processes.

March 2014)
9. Data limitations No known limitations.
10. Quality assurance Review by Funds and Finance department

strategy
11. Indicator responsibility Finance Manager


PerformanceIndicator1.4:ValueofnewEnterpriseDevelopmentcontributorssecured
1. Indicator title Value of Enterprise Development contributions secured into the

approved NEF ED Fund from measured entities
2. Short definition Value of ED Fund contributions
3. Purpose/importance Reflects the total value of cash contributions made by private

sector organisations to the ED Fund
4. Source/collection of Asset Management; Finance Department

data
5. Lead/ coordinating Asset Management
agency
6. Method of calculation Asset Management and Finance keep track of contributors and
contributions made.
8. Baseline R25.8 million secured

March 2014)
9. Data limitations None known
10. Quality assurance Review by Asset Management and Finance Departments

strategy
11. Indicator responsibility Asset Management Project Manager


PerformanceIndicator2.1:Numberofjobopportunitiessupportedorcreated
1. Indicator title Number of job opportunities supported or created
2. Short definition Number of job opportunities supported
3. Purpose/importance Reflects the approximate number of jobs supported i.e. new and
existing jobs, according to funds committed to investees by the
NEF.
4. Source/collection of Funds
data
agency
6. Method of calculation The information is captured on the CRM information. The final
values and reports are reviewed and signed off by Fund
Managers and Divisional Executives.
8. Baseline Funding approvals are projected to support 3 621 jobs (2 661

(for the year ended 31 new and 960 existing)
March 2014)
9. Data limitations Jobs are recorded during due diligence phase and actual number
of jobs supported may vary depending on business requirements
post the disbursement process.
10. Quality assurance Review by Fund Managers

strategy


PerformanceIndicator3.1:Percentageoftheportfolioownedbyblackwomen
1. Indicator title Percentage of the portfolio owned by black women
2. Short definition Percentage of the portfolio owned by black women
3. Purpose/importance To maximise the participation of black women in the economy.
4. Source/collection of Funds
data
5. Funds Funds
6. Method of calculation The information is captured by the Funds and stored on the CRM
system
7. Calculation type Based on total active portfolio as at reporting date
8. Baseline 21%
March 2014)
9. Data limitations This represents value of the portfolio disbursed that is owned by
women.
10. Quality assurance The information is checked and submitted by the Funds onto
strategy CRM.
11. Indicator responsibility Funds


PerformanceIndicator4.1:IncreasetheoverallcollectivevalueoftheportfolioinvestedinEC,
NC,WC,KZN,NW,MpumalangaandLimpopoby5%
1. Indicator title Total collective increase the percentage of portfolio by value

invested in EC, NC, WC, KZN, NW, Mpumalanga, FS and
Limpopo
2. Short definition Increase portfolio size in under-represented provinces
3. Purpose/importance To facilitate investment across all provinces of South Africa
4. Source/collection of Fund managers

data
agency
6. Method of calculation Provincial data is captured and stored on the CRM system which
can be tracked per fund and for the NEF.
7. Calculation type Cumulative
8. Baseline The proportionate value of the portfolio invested in the listed

(for the year ended 31 provinces increased from 50% to 51% which was driven by new
March 2014) investments in the Eastern Cape, Free State, Northern Cape,
Mpumalanga and Limpopo.
9. Data limitations None
10. Quality assurance Information is captured and verified by funds.

strategy


PerformanceIndicator5.1:Numberofseminarsheldacrossthecountry
1. Indicator title Number of investor education seminars held across the country
2. Short definition Number of seminars held
3. Purpose/importance To increase the understanding of equity ownership among black

people and increased activity in savings and investment by black
people.
4. Source/collection of Asset Management Division

data
5. Lead/ coordinating Asset Management Division
agency
6. Method of calculation Total number of seminars held per province. Record is kept of
the seminars held and this is reported on by the Project Manager.
8. Baseline Four investor education seminars held in Limpopo.

March 2014)
9. Data limitations No specific limitations
10. Quality assurance Seminars are managed and attended by NEF. The number of
strategy seminars and the number of attendees are counted.
11. Indicator responsibility Asset Management Project Manager


PerformanceIndicator6.1:NumberofBusinessTodayTrainingSessionsprovided
1. Indicator title Providing Business Skills (Business Today and Bootcamp)

Training
2. Short definition Business Skills Training
3. Purpose/importance Provision of training to black-owned businesses and

entrepreneurs
4. Source/collection of Pre-Investment Unit

data
5. Lead/ coordinating Pre-Investment Unit
agency
6. Method of calculation A record is kept of the training sessions held together with the
towns in which training hosted.
8. Baseline 6 training sessions provided

March 2014)
10. Quality assurance A record is kept of the training sessions held together with the
strategy towns in which training hosted. This can be verified by Supply
Chain and Finance department, based on orders and invoices
raised.
11. Indicator responsibility Pre-Investment Unit Manager


PerformanceIndicator6.2:Numberofentrepreneursthatprogresstothefinalstagesofthe
BusinessIncubationprogramme
1. Indicator title Number of Entrepreneurs that progress to the final stages of the
Business Incubation programme
2. Short definition Business Incubation
3. Purpose/importance Focus on tracking progress of those referred to the business

incubation programmes
4. Source/collection of Pre-Investment Unit

data
5. Lead/ coordinating Pre-Investment Unit
agency
6. Method of calculation Count of the number of entrepreneurs who have reached the final
stage of the Incubation Programme
8. Baseline Total of 64 entrepreneurs referred to incubation partners.

March 2014)
9. Data limitations The NEF has in the past few years focused on counting the
number of referrals made to business incubation programmes.
The focus going forward will be to ensure that those referred
actually successfully complete the programme.
10. Quality assurance A list of entrepreneurs referred to the incubation programme is

strategy kept by Pre-Investment. Progress of referrals will be verified with
the Incubation Programme itself.
11. Indicator responsibility Pre-Investment Unit Manager


PerformanceIndicator6.3:NumberofCorporateGovernanceTrainingSessionsprovided
1. Indicator title Number of Corporate Governance Training provided
2. Short definition Corporate Governance Training
3. Purpose/importance Provision of corporate governance training to black-owned

businesses and entrepreneurs
4. Source/collection of Socio-Economic Development Unit

data
5. Lead/ coordinating Socio-Economic Development Unit
agency
6. Method of calculation A record is kept of the training sessions held together with the
towns in which training hosted.
8. Baseline This is a new target

March 2014)
10. Quality assurance A record is kept of the training sessions held together with the
strategy towns in which training hosted. This can be verified by Supply
Chain and Finance department, based on orders and invoices
raised.
11. Indicator responsibility Socio-Economic Development Unit


PerformanceIndicator7.1.:BrandAuditSurveyfindings
1. Indicator title Brand Audit Survey findings
2. Short definition The findings of the Brand Audit Survey
3. Purpose/importance To track brand awareness of the NEF in order to drive the

utilisation of the NEF’s services and financing products.
4. Source/collection of Marketing & Communications has outsourced this function to a

data media agency
5. Lead/ coordinating Marketing & Communications

agency
6. Method of calculation A survey is performed every second year.
7. Calculation type Non-cumulative
8. Baseline N/A for 2013/14 as Audit only conducted every second year.
March 2014)
10. Quality assurance Checked and verified by the media agency

strategy
11. Indicator responsibility Marketing & Communications Manager


PerformanceIndicator8.1:PercentageofPortfolioImpaired
1. Indicator title Percentage of the portfolio impaired
2. Short definition The total percentage of the value invested in investees that is
valued at less than the original valuation, and that may have to
be written off in future.
3. Purpose/importance The level of impairment is an indication of the sustainability of the

fund.
4. Source/collection of Finance Department

data
5. Lead/ coordinating Finance Department
agency
6. Method of calculation Valuations are performed on the portfolio based on the current
performance of investee’s businesses.
7. Calculation type Non-cumulative
8. Baseline 22.27% on the loans portfolio and 19.94% on the entire

(as at 31 March 2014) disbursed portfolio.
10. Quality assurance The valuations are performed by an independent consultant

strategy together with the Post Investment Unit and the Finance
Department.
11. Indicator responsibility Finance Manager


PerformanceIndicator8.2:TargetROIbeforeimpairments
1. Indicator title Target return on investment before impairments
2. Short definition Annual return earned by the total portfolio i.e. loans and
preference share portfolio before impairments
3. Purpose/importance The ability to generate a healthy return improves the ability of the
fund to be sustainable.
4. Source/collection of Finance Department

data
agency
6. Method of calculation Returns are calculated based on actual collections received from
investees
7. Calculation type Cumulative
8. Baseline 8.8% on the loans portfolio and 10.1% on the entire portfolio.
(as at 31 March 2014)
10. Quality assurance Calculations are performed by the Finance Manager and audited
strategy by the external auditors
11. Indicator responsibility Fund Manager, Post Investment Unit Manager, Chief Financial
Officer


PerformanceIndicator8.3:Collectionsratio
1. Indicator title Improve collections ratios
2. Short definition The NEF seeks to improve the percentage of monies collected
from investees based on the total amount invoiced.
3. Purpose/importance To ensure sustainability of the fund
4. Source/collection of Finance Department, Post Investment Unit

data
agency
6. Method of calculation Percentage of funds received based on the total amount invoiced
8. Baseline 87%
March 2014)
10. Quality assurance Invoicing is performed by Finance Department, and audited as

strategy part of the annual audit exercise.
11. Indicator responsibility Chief Financial Officer

N e Fu d
Appendix A: Financial Prrojections

A
National Empowerment Fund

Summary Statement of Financial Performance
ACTUAL FORECAST BUDGET BUDGET BUDGET

Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
R R R R R
INCOME:
Dividends 115,970,282 104,373,254 95,000,000 95,000,000 95,000,000

Interest Received Banks 75,959,797 75,959,797 73,179,911 48,596,994 (3,937,298)
Interest from Investments 193,420,218 217,207,065 257,933,434 327,656,947 415,174,578
Fees - - 3,020,160 3,049,200 4,224,000
Enterprise Development Fund 19,310,947 23,000,000 23,000,000 33,000,000 43,000,000
Other income 59,290 - - - -
Bad Debts Recovered 758,500 2,000,000 2,000,000 2,000,000 2,000,000
405,479,034 422,540,116 454,133,505 509,303,141 555,461,280
EXPENDITURE
Goods & Services 53,875,388 69,440,593 72,373,357 77,076,135 81,892,669
Compensation to employees 135,825,922 170,174,618 194,289,973 205,291,040 213,516,472
Depreciation 3,396,821 3,893,530 4,975,471 5,132,830 5,392,981
Projects/ Non-financial support 6,662,410 14,500,000 15,312,000 16,154,160 16,961,868
Impairment Provision 152,318,522 153,597,265 149,151,782 153,536,959 168,654,414
Total Expenditure 352,079,063 411,606,007 436,102,583 457,191,124 486,418,404
OPERATIONAL SURPLUS/(DEFICIT) 53,399,971 10,934,109 18,030,922 52,112,017 69,042,876
Fair value Adj - Held at fair value 574,965,297 - - - -

Fair value Adj - unincorporated equity inventments (2,302,000) - - - -
Fair value adj - investment in asssociates (22,297,305) - - - -
TOTAL FAIR VALUE ADJUSTMENTS 550,365,992 - - - -
Net surplus/(deficit) 603,765,963 10,934,109 18,030,922 52,112,017 69,042,876
B Pa 2
2015/16 59
N Empowerment Fund
Summary Statement of Financial Position
Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
R R R R R
ASSETS
Non Current Assets 4,494,383,783 4,985,326,491 5,809,201,165 6,658,551,962 7,971,277,583
Property, Plant and Equipment 4,784,867 8,249,407 10,324,585 10,377,209 10,764,047
Intangible Assets 193,566 835,496 1,284,847 1,599,393 1,819,575
Investments in Associates 423,870,556 586,370,556 815,170,556 1,046,170,556 1,366,170,556
Investments Held at Fair Value 2,254,784,956 2,254,784,956 2,254,784,956 2,254,784,956 2,254,784,956
Investment in subsidiary 6,178,104 6,178,104
Finance Lease receivables 103,903,996 123,364,170 159,287,865 196,366,883 255,893,999
Loans and Preference Shares 1,700,667,738 2,005,543,801 2,568,348,356 3,149,252,965 4,081,844,450
Preference shares 224,006,841 224,006,841 224,006,841 224,006,841 224,006,841
Loans 1,476,660,897 1,781,536,960 2,344,341,515 2,925,246,124 3,857,837,609
Current Assets 1,538,212,583 1,051,840,979 245,997,226 (551,241,553) (1,794,924,298)

Accounts Receivable 1,009,474 1,009,474 1,009,474 1,009,474 1,009,474
Non-current assets - Held for sale 8,100,000 - - - -
Investments Held for Trading 49,070,675 49,070,675 49,070,675 49,070,675 49,070,675
Cash and Bank 1,480,032,434 1,001,760,830 195,917,077 (601,321,702) (1,845,004,447)
TOTAL ASSETS 6,032,596,366 6,037,167,469 6,055,198,391 6,107,310,409 6,176,353,285
EQUITY AND LIABILITIES

Trust Capital and Reserves 5,976,233,360 5,987,167,469 6,005,198,391 6,057,310,409 6,126,353,285
Trust Capital 2,468,431,472 2,468,431,472 2,468,431,472 2,468,431,472 2,468,431,472
Retained Income 3,507,801,888 3,518,735,997 3,536,766,919 3,588,878,937 3,657,921,813
- Balance at Beginning of the Year 2,904,035,925 3,507,801,888 3,518,735,997 3,536,766,919 3,588,878,937
- Retained Income/(Deficit) for the Year 603,765,963 10,934,109 18,030,922 52,112,017 69,042,876
Current Liabilities 56,363,006 50,000,000 50,000,000 50,000,000 50,000,000
Accounts Payable 56,363,006 50,000,000 50,000,000 50,000,000 50,000,000
TOTAL EQUITY AND LIABILITIES 6,032,596,366 6,037,167,469 6,055,198,391 6,107,310,409 6,176,353,285
Business Plan for 2

B 2015/16 60
N Empowerment Fund

Cash Flow Statement
2014 2015 2016 2017 2018

March March March March March
R R R R R
Cash flows from operating activities (167,994,671) (227,378,218) (256,975,331) (263,521,336) (267,371,009)
Cash receipts from customers 20,128,737 25,000,000 25,000,000 35,000,000 45,000,000
Cash paid to suppliers and employees (188,123,408) (252,378,218) (281,975,331) (298,521,336) (312,371,009)
Cash flows from investing activities (41,034,766) (250,893,387) (548,868,422) (533,717,443) (976,311,736)
Additions to property, and equipment (672,708) (7,000,000) (6,500,000) (4,500,000) (5,000,000)
Additions to intangible assets (5,647) (1,000,000) (1,000,000) (1,000,000) (1,000,000)
Investment disbursements (636,122,042) (812,500,000) (1,144,000,000) (1,155,000,000) (1,600,000,000)
Dividends received 168,656,837 104,373,254 95,000,000 95,000,000 95,000,000
Interest receipts 76,002,554 75,959,797 73,179,911 48,596,994 (3,937,298)
Repayments on originated loans, preference shares and leases 351,106,240 389,273,563 428,273,563 483,185,563 538,625,563
Proceeds from sale of investments - - 6,178,104 - -
Decrease in cash and cash equivalents (209,029,437) (478,271,604) (805,843,753) (797,238,779) (1,243,682,745)
Cash at beginning of the year 1,689,061,869 1,480,032,434 1,001,760,830 195,917,077 (601,321,702)
Total Cash at end of year 1,480,032,434 1,001,760,830 195,917,077 (601,321,702) (1,845,004,447)
Business Plan for 2

B 2015/16 61
N
NĂƟŽŶĂů ŵƉŽǁeƌŵĞŶƚ FuŶd
P
Personnel
ersonnel inforrrmation
mation
Audited outcomes Revised Estimate Projections over the MTEF
Components of
Category Salary Level Occupation 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
Remuneration
Expenditure
on posts Expenditure on Expenditure on Expenditure on Expenditure on Expenditure on
Number of Number of Number of Number of Number of Number of
posts filled on posts filled on posts filled on posts filled on posts filled on
posts filled on filled on posts filled on posts filled on posts filled on posts filled on posts filled on
Unit Cost funded Unit Cost funded Unit Cost funded Unit Cost funded Unit Cost funded Unit Cost
funded funded funded funded funded funded funded
establishment establishment establishment establishment establishment
establishment establishment establishment establishment establishment establishment establishment
(R thousand) (R thousand) (R thousand) (R thousand) (R thousand)
(R thousand)
102 874 - 121 911 Elementary occupations Basic Salary 2 204 102 2 218 109 2 280 140 2 292 146 2 301 151 2 316 158
121 912 - 145 758 Administrative related Basic Salary 3 356 119 3 381 127 3 490 163 3 510 170 3 526 175 3 552 184
145 759 - 175 023 Administrative related Basic Salary 5 721 144 5 772 154 5 991 198 5 1,034 207 5 1,064 213 5 1,117 223
175 024 - 216 084 Administrative office workers Basic Salary 5 896 179 5 960 192 5 1,231 246 5 1,273 255 5 1,321 264 5 1,387 277
216 083 - 268 338 Administrative office workers Basic Salary 15 3,412 227 12 3,154 263 16 5,000 313 16 5,170 323 16 5,364 335 16 5,632 352
268 339 - 327 126 Administrative office workers Basic Salary 14 4,009 286 13 4,494 346 14 5,025 359 14 5,694 407 14 5,909 422 14 6,204 443
327 125 - 532 277 Financial and related professionals Basic Salary 16 5,280 330 12 5,655 471 24 9,979 416 26 12,189 469 26 12,648 486 26 13,280 511
532 278 - 627 000 Financial and related professionals Basic Salary 43 23,174 539 36 22,419 623 39 29,600 759 39 39,396 1,010 43 42,105 979 43 44,150 1,027
627 001 - 819 125 Financial and related professionals Basic Salary 11 6,909 628 8 7,400 925 16 12,574 786 16 13,345 834 24 14,342 598 24 15,056 627
819 126 - 964 902 Managers Basic Salary 40 35,069 877 37 34,970 945 30 38,963 1,299 40 40,430 1,011 40 49,276 1,232 40 51,903 1,298
964 903 - 1 181 469 Senior managers Basic Salary 7 7,265 1,038 6 7,581 1,264 8 10,804 1,351 10 11,892 1,189 10 12,239 1,224 10 12,851 1,285
1 181 470 - 1 353 732 Senior managers Basic Salary 2 2,205 1,103 2 2,362 1,181 2 3,030 1,515 2 3,159 1,580 2 3,251 1,626 2 3,414 1,707
2 887 238 - 3 267 130 Head of department/chief executive officer Basic Salary 1 3,187 3,187 1 3,413 3,413 1 4,004 4,004 1 4,364 4,364 1 4,697 4,697 1 4,932 4,932
102 874 - 121 911 Elementary occupations Performance Rewards - 65 - - 70 - - 78 - - 77 - - 78 - - 78 -
121 912 - 145 758 Administrative related Performance Rewards - 114 - - 122 - - 136 - - 136 - - 139 - - 139 -
145 759 - 175 023 Administrative related Performance Rewards - 228 - - 244 - - 272 - - 273 - - 278 - - 278 -
175 024 - 216 084 Administrative office workers Performance Rewards - 264 - - 283 - - 316 - - 317 - - 323 - - 323 -
216 083 - 268 338 Administrative office workers Performance Rewards - 944 - - 1,011 - - 1,202 - - 1,207 - - 1,229 - - 1,229 -
268 339 - 327 126 Administrative office workers Performance Rewards - 1,120 - - 1,200 - - 1,338 - - 1,343 - - 1,367 - - 1,367 -
327 125 - 532 277 Financial and related professionals Performance Rewards - 1,843 - - 1,974 - - 3,577 - - 3,590 - - 3,656 - - 3,656 -
819 126 - 964 902 Managers Performance Rewards - 12,509 - - 11,127 - - 9,361 - - 10,454 - - 11,932 - - 11,932 -
964 903 - 1 181 469 Senior managers Performance Rewards - 2,677 - - 2,867 - - 3,653 - - 3,667 - - 3,735 - - 3,735 -
1 181 470 - 1 353 732 Senior managers Performance Rewards - 1,109 - - 1,188 - - 1,325 - - 1,330 - - 1,354 - - 1,354 -
1 353 733 - 1 768 893 Senior managers Performance Rewards - 1,341 - - 1,436 - - 1,601 - - 2,600 - - 2,637 - - 2,637 -
1 768 894 - 1 997 811 Senior managers Performance Rewards - 795 - - 851 - - 949 - - 2,952 - - 970 - - 970 -
2 887 238 - 3 267 130 Head of department/chief executive officer Performance Rewards - 1,519 - - 2,091 - - 1,815 - - 2,821 - - 1,855 - - 1,855 -
> 3 267 131 Financial and related professionals Performance Rewards - - - - 1,593 - - 3,500 - - 4,570 - - 2,000 - - 2,000 -
TOTAL 168 131,396 782 146 135,024 925 169 170,175 1,007 183 194,290 1,062 195 205,291 1,053 195 213,516 1,095
B 2015/16
BƵƐŝŶĞƐƐ PůaŶ ĨŽƌ 2 62

How To Reach The National Empowerment Fund
Head Ofﬁce Gauteng Province
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)
applications@nefcorp.co.za (Funding) | info@nefcorp.co.za (General Enquiries)
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)
easterncape@nefcorp.co.za
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 NE F (0861 377 633)
freestate@nefcorp.co.za
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) | kzn@nefcorp.co.za
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) | limpopo@nefcorp.co.za
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) | mpumalanga@nefcorp.co.za
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)
northwest@nefcorp.co.za
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) | westerncape@nefcorp.co.za
Limpopo
Mpumalanga
Gauteng
North West
Free State KwaZulu-Natal
Northern Cape
Eastern Cape
Western Cape
STOP Fraud, Corruption and Theft

Contact Tip-Offs Anonymous on 0800 212 705 or email nef@tipoffs.com
National Empowerment Fund Trust (established by Act 105 of 1998) IT: 10145/00
www.nefcorp.co.za | www.nefbusinessplanner.co.za

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BUSINESS PLAN

Approval of the Business Plan

Recommended by the CEO for Endorsement by the Accounting

Name: Philisiwe Mthethwa Name: Rakesh Garach

Rank: CEO Rank: Acting Chairman

Date: 30 / 01 / 2015 Date: 30 / 01 / 2015

Business Plan for 2015/16 2

AMD : Asset Management Division

APP : Annual Performance Plan

Approved: Final committee approval obtained, legal agreements not signed

B-BBEE: Broad-Based Black Economic Empowerment

BFS : Bankable Feasibility Study

Commitments: Legal agreements signed. (Deals may have been approved in

CPs : Conditions Precedent

DFIs : Development Finance Institutions

Drawdowns: Advances made against disbursed facilities

EIA : Environmental Impact Assessments

ETF : Exchange Traded Funds

FMD : Fund Management Division

GDP : Gross Domestic Product

IDC : Industrial Development Corporation

IPAP : Industrial Policy Action Plan

IPF : Industrial Policy Framework

IRR : Internal Rate of Return

KPI : Key Performance Indicator

MBO : Management Buy-Out

MOU : Memorandum of Understanding

NCOP : National Council of Provinces

NEF : National Empowerment Fund

NIPF : National Industrial Policy Framework

PFMA : Public Finance Management Act

PFS : Pre-feasibility study

PIU : Pre-Investment Business Support Unit

POIU : Post Investment Business Support Unit

RMC : Risk and Portfolio Management Committee

ROI : Return on Investment

SAIs : State-Allocated Investments

SME : Small and Medium Enterprise

SOCE : State Owned Commercial Enterprise

SPF : Strategic Projects Fund

1. Chairman’sNote............................................................................................................................. 6

activities there is a common theme of building Black Industrialists.

has also been established to monitor this process.

Re-examining the current funding instruments and developing a

guideline on moratoriums to improve on cash-inflows.

ƵƐŝŶess WůĂŶ fŽƌ 2015/16 6

x Increase focus on funding expansion finance type transactions that do

not require long moratoriums or funding instruments that delay

repayments to the NEF.

x Re-examining the current pricing model used by the organisation.

Our vision is to be the leading provider of innovative transformation solutions for an

economically inclusive South Africa. We seek to be the lead financier of B-BBEE

investments in the DFI space.

The National Empowerment Fund is a catalyst of Broad-Based Black Economic

Empowerment in South Africa.

We enable, develop, promote and implement innovative investment and transformation

solutions to advance sustainable black economic participation in the economy.

Ethics – Choosing to do what’s right over what’s wrong

Motivation – Being self-driven and passionate in what we do

Performance – Achieving results timeously, accurately and performing to create an impact

valued for our contribution

Excellence – Consistently exceeding expectations and being the best in everything we do

ƵƐŝŶess WůĂŶ fŽƌ 2015/16 8

ƵƐŝŶess WůĂŶ fŽƌ 2015/16 6

ƵƐŝŶess WůĂŶ fŽƌ 2015/16 8

ƵƐŝŶess WůĂŶ fŽƌ 2015/16 9

ƵƐŝŶess WůĂŶ fŽƌ 2015/16 10

ƵƐŝŶess WůĂŶ fŽƌ 2015/16 11

ƵƐŝŶess WůĂŶ fŽƌ 2015/16 13

ƵƐŝŶess WůĂŶ fŽƌ 2015/16 14

ƵƐŝŶess WůĂŶ fŽƌ 2015/16 15

ƵƐŝŶess WůĂŶ fŽƌ 2015/16 16

ƵƐŝŶess WůĂŶ fŽƌ 2015/16 17

ƵƐŝŶess WůĂŶ fŽƌ 2015/16 18