Empowerment fund seeking recapitalisation, BUSINESS DAY (Late Final)
Empowerment fund seeking recapitalisation, BUSINESS DAY (Late Final) Page 2
THE National Empowerment Fund (NEF), the government vehicle set up in 1998 to fund black empowerment transactions and enterprises, said yesterday it had been forced to cease making disbursements and was seeking a recapitalisation. The announcement comes amid controversy as to whether the Treasury had honoured all of its commitments to the fund, established from some of the proceeds of various privatisations of state assets. The NEF's distress will prompt a rethink whether a dedicated empowerment financing institution was still necessary or whether it should be folded into the Industrial Development Corporation (IDC). The fund's model is based on that of the IDC, which is self-financing through its deals.
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