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

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