The National Empowerment Fund (NEF) has, since its inception in 2005, approved funding of R6.6-billion in 688 transactions, supporting over 82 900 jobs.

Nearly R4.6-billion had been disbursed to companies, while over R1-billion had been repaid by investees.

During the 2014/15 financial year, the development finance institution approved 94 deals worth a collective R895-million against a target of 96 deals worth R718-million. It also disbursed R562-million against a target of R560-million.

Through this, it supported 33 763 job opportunities, of which 32 820 were new jobs.

“Black business does not equate to small business; this perpetuates an apartheid construct according to which black people must remain on the periphery as owners of small- and microenterprises.

“Black people are still excluded from the economic spectrum; this is why we do not limit our funding to small- and medium-sized enterprises, but actively seek to see black people also owning major corporations,” NEF CEO Philisiwe Mthethwa told journalists at a media briefing on Friday.

She added that, as direct consequence of apartheid, black people still only owned about 3% of direct equity in the national economy, when using the JSE listings as a proxy.

“Until the economy is transformed to mirror national population demographics, we must remain the strategic imperative that will guide the quest for inclusive growth,” she said.

Meanwhile, Mthethwa pointed out that, through the NEF’s special projects fund (SPF), the organisation had made significant contributions in the creation of new manufacturing and industrial capacity, including renewable energy, mineral beneficiation, agroprocessing, information and communication technology, infrastructure, pharmaceuticals and tourism.

The SPF was designed to assist black entrepreneurs develop greenfield projects of industrial scale. Positioned as a venture capital operation, the SPF had unlocked 24 strategic projects worth R27-billion.

“These projects have the potential to support a further 80 000 jobs,” Mthethwa said, adding that one such project was the R150-million medical equipment manufacturing company Kenako, which sought to manufacture hypodermic disposable syringes and needles – a first for the continent.

However, the NEF was not without its challenges, Mthethwa said, noting that, to discharge the 2016/17 strategy, R1-billion in funds would be required for cash injections. The total trust capital currently stood at R2.46-billion, while the NEF’s net asset value stood at R5.8-billion.

Further, she noted that recapitalisation from government had not taken place, which meant that it would have to use its own capital reserves to continue funding operations.