Local City of Steve Tshwete (STLM), in partnership with National The Empowerment Fund (NEF), has allocated a total of RF50 million to the Enterprise and Supplier Development Fund (ESD) established between the two entities to support SMEs owned and managed by SMEs in the community.
The city government will make a financial contribution of REF 20 million, with NEF providing R 30 million for eligible transactions at a ratio of 40:60. These funds are beneficial for the community-based, black majority, black women, and economically sustainable businesses.
NEF has built a solid reputation as a fund manager since its inception by partnering with various public and private sector organizations.
“Since operations began in 2004, NEF has approved more than RARD 11.13 billion for black employers nationwide, supported more than 103,299 jobs, and achieved a clean external audit rating in 17 years,” the statement said. Steve Tshwete, a community leader, said the community is grateful for partnering with NEF because this initiative will create business opportunities for STLM residents.
“This effort will foster SMEs, promote residential industrialization, and stimulate and diversify economic and industrial growth. Our goal was to close the economic gap created, among other things, by the Covid-19 pandemic. This initiative will also ensure that our vision of being the best city in South Africa for service delivery, innovation, good governance, and inclusive growth is realized,” said Kenenisa.
He added that the partnership “will encourage and encourage decisions made by the community to ensure economic growth and inclusion in the SME sector.” Seakale Molopo, executive director of strategy, planning, and significant investment at NEF, said the partnership was vital because it would achieve the organization’s primary goal of optimizing its investment portfolio and presence across the country.