The NEF measures and assess its impact not only on the basis of financial return, but in accordance with what has come to be referred to as the “Empowerment Dividend”. This incorporates the Codes of Good Practice as well as specific focus on Black Women Empowerment, Job Creation, Priority Growth Sectors and Geographic Spread.
This investment methodology enables the NEF to pursue national priorities such as B-BBEE, the dtic’s industrial policy objectives and targeted government programmes.
- Participation by Black women – the NEF emphasises the empowerment of women by providing for an additional weighting for Black women participation. The target and KPI for women’s participation is 40% of the BEE ownership level supported in each transaction.
- Job Creation – Contribution towards employment creation and the number of jobs created per rand invested or jobs sustained through investment in expansion type activities. Targets in terms of job creation and job spend are not specifically set for the year though the results are monitored by business stage and against industry sector reported job investment levels and costs and higher job yielding transactions are supported at the outset.
- 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 New Growth Path and the National Industrial Policy Framework (NIPF) and Industrial Policy Action Plan (IPAP).
- Geographic Spread – Geographic spread of investments and contribution towards increased economic activity across all provinces, particularly in areas of regional economic disadvantage. Targets in terms of geographic spread are set to attempt to match the respective provinces relative contribution to national Gross Domestic Product (GDP) and surpass this in areas of regional economic disadvantage.
- Investment Return – The real return that each Fund realises on capital employed, after the impairment ratios experienced for that fund, as a combined measure of debt, equity and quasi-equity invested. Targeted invested returns are in the range of 12% to 15%.
