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

uMnotho Fund

This Fund is designed to improve access to BEE capital and has five products.

uMnotho Fund has the following products:

• Acquisition Finance,
• Project Finance,
• Expansion Finance,
• Capital Markets Fund,
• Liquidity and Warehousing

1. Acquisition Finance

The key criteria of this product are:

• BEE applicants seeking to fund equity purchases of between R2 million and R75 million in existing businesses
• Focus on medium to large companies
• Focus on partnerships with existing management teams and other equity investors
• Minimum BEE ownership of 25.1% post NEF investment
• Active BEE management participation
• Active BEE involvement in investee companies
• BEE Financial contribution determined on case-by-case basis
• Investment instruments can include a combination of debt, equity and mezzanine finance
• The NEF reserves the right to oblige applicants to participate in the NEF mentorship programme
• Typical investment horizon of 4 to 7 years
• Security to include personal guarantee

2. New Venture Finance

This product provides capital of R5 million to R25 million per project for BEE parties seeking to participate in medium-sized greenfields projects with total funding requests of between R10 million and R200 million.

The key criteria of this product are:

• Minimum 25.1% BEE shareholding
• Investment instruments can include a combination of debt, equity and mezzanine finance in support of BEE
• BEE-specific financial contribution assessed on a case-by-case basis
• NEF exposure to the project generally not to exceed 50% of total project costs
• Proven management experience within consortium
• Active BEE involvement in investee companies

3. Expansion Capital

The NEF will provide funding of R5 million to R75 million to entities that are already black-empowered, but seek expansion capital to grow the business.

The key criteria of this product are:

• Investment instruments can include a combination of debt, equity and mezzanine finance in support of BEE
• BEE shareholding should be minimum of 50.1%
• Pricing based on instrument, risk matrix, security package, etc.
• Typical investment horizon of 4 to 7 years
• Active BEE involvement in investee companies
• Security to include personal guarantee and security over business assets

4. Capital Markets

This product invests in BEE enterprises, particularly those owned by black women, that seek to list on the JSE or its junior AltX market. The Umnotho Fund will also help listed BEE companies to raise additional capital for expansion.

The key criteria of this product are:

• BEE applicants seeking to fund equity purchases of between R2 million and R75 million in existing businesses
• Focus on medium to large companies
• Focus on partnerships with existing management teams and other equity investors
• Minimum BEE ownership of 25.1% post NEF investment
• Active BEE management participation
• Active BEE involvement in investee companies
• BEE Financial contribution determined on case-by-case basis
• Investment instruments can include a combination of debt, equity and mezzanine finance
• The NEF reserves the right to oblige applicants to participate in the NEF mentorship programme
• Typical investment horizon of 4 to 7 years
• Security to include personal guarantee

5. Liquidity & Warehousing

This product assists BEE shareholders who need to sell a portion or all of their shares (as minority stakes in unlisted firms are hard to sell). Also acquires and temporarily warehouses these shares before on-selling them to new BEE shareholders, and refinances BEE shareholdings where existing financing structures are costly and/or inefficient.

The key criteria of this product are:

• BEE applicants seeking to fund equity purchases of between R2 million and R75 million in existing businesses
• Focus on medium to large companies
• Focus on partnerships with existing management teams and other equity investors
• Minimum BEE ownership of 25.1% post NEF investment
• Active BEE management participation
• Active BEE involvement in investee companies
• BEE Financial contribution determined on case-by-case basis
• Investment instruments can include a combination of debt, equity and mezzanine finance
• The NEF reserves the right to oblige applicants to participate in the NEF mentorship programme
• Typical investment horizon of 4 to 7 years
• Security to include personal guarantee

How to apply

Download Application Form

Please note:

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

Send applications to: applications@nefcorp.co.za

Contact us

For enquiries visit or contact your nearest office:

Gauteng Province (Head Office)
West Block, 187 Rivonia Road, Morningside 2057, PO Box 31, Melrose Arch, Melrose North 2076

Tel: +27 (11) 305 8000 

Fax: +27 (11) 305 8001

Call Centre: 0861 843 633 | 0861 (THE NEF)

Email (Applications): applications@nefcorp.co.za

Email (General Enquiries): info@nefcorp.co.za

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

Fax: 0861 ECP NEF (0861 327 633)
Email: 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 NEF (0861 377 633)
Email: 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)
Email: 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)
Email: 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)
Email: 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)
Email: 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) 

Email: westerncape@nefcorp.co.za