Fund Name

uMnotho Fund

Agency

NEF

Type

Loans & Equity

Sector

Youth & Black-Owned

Summary

The uMnotho Fund improves access to BEE capital for black-owned and managed enterprises through five products — Acquisition Finance, New Venture Finance, Expansion Capital, Capital Markets, and Liquidity and Warehousing — with funding ranging from R2 million to R50 million.

The uMnotho Fund is designed to improve access to BEE capital and has five products: Acquisition Finance, Project Finance, Expansion Finance, Capital Markets Fund, and Liquidity and Warehousing. These products provide capital to black-owned and managed enterprises, black entrepreneurs who are buying equity shares in established black and white owned enterprises, starting new ventures, expanding existing businesses, and BEE businesses that are or wish to be listed on the JSE.

Funding ranges from R2 million to R50 million.

Who this is for?

The uMnotho Fund is aimed at:

  • Black-owned and managed enterprises seeking BEE capital
  • Black entrepreneurs buying equity shares in established businesses (black or white-owned)
  • Entrepreneurs starting new ventures
  • Existing businesses seeking expansion capital
  • BEE businesses that are or wish to be listed on the JSE
  • Small, medium and large enterprises (6 to 50+ employees)
  • Community-owned entities (trusts / co-ops)
  • Youth-owned and women-owned businesses

What support/funding you can get

  • Minimum funding: R2 million
  • Maximum funding: R50 million
  • Finance types: Debt, quasi-equity, and equity finance

What you can use it for?

Funding is delivered through five products:

  • 1. Acquisition Finance – to fund the purchase of equity shares in established businesses
  • 2. New Venture Finance – to start a new black-owned business or venture
  • 3. Expansion Capital – to grow and expand an existing black-owned business
  • 4. Capital Markets – for BEE businesses seeking JSE listing or capital market participation
  • 5. Liquidity and Warehousing – to provide liquidity support and warehousing of BEE shares

Eligible uses include working capital, buildings, machinery, equipment, commercial vehicles, business expansion, energy resilience/solar, export growth, buying a business or shares, feasibility studies, and infrastructure.

Key requirements and conditions

  • Business must be majority black-owned (51% or more)
  • Applicable to start-ups, growing businesses, and established companies
  • Funding ranges from R2 million to R50 million
  • Finance products include debt, quasi-equity, and equity
  • Must align with one of the five fund products
  • BEE companies seeking JSE listing may also be eligible through the Capital Markets product

How the application works

Applicants can apply for funding through the NEF’s online application process or by contacting the NEF directly. Applications are assessed based on black ownership level, business viability, developmental impact, and alignment with one of the five fund products.

Visit the How to Apply for Funding page on the NEF website for step-by-step guidance.

What to prepare before you start

  • Proof of black ownership (minimum 51%)
  • Business plan or investment proposal
  • Financial statements or projections (audited where available)
  • Details of the transaction or funding purpose (acquisition, new venture, expansion, etc.)
  • Share structure and ownership documentation
  • Identity documents for key shareholders and directors
  • Details of the target company (for acquisition finance)

Am I a fit for this particular fund?

You likely qualify if:

  • Your business is at least 51% black-owned
  • You need between R2 million and R50 million in funding
  • You are acquiring equity in an established business, starting a new venture, or expanding an existing black-owned enterprise
  • Your business operates in manufacturing, services (tourism, ICT, logistics, film & TV), infrastructure/energy, export/trade, or creative industries
  • Your business has 6 or more employees
  • You have an annual turnover of R1 million or more
  • Your entity may be community-owned (trust or co-op), youth-owned, or women-owned

You likely do not qualify if:

  • Your business is not at least 51% black-owned
  • You require funding below R2 million (consider the iMbewu Fund)
  • You require funding above R50 million (consider the Strategic Projects Fund)
  • Your business has fewer than 6 employees
  • Your funding need does not align with any of the five uMnotho products

Quick facts

Overview

  • Agency: National Empowerment Fund (NEF)
  • Product name uMnotho Fund
  • What this is: A fund providing BEE capital to black-owned and managed enterprises through five products covering acquisitions, new ventures, expansion, capital markets, and liquidity support.
  • Geographic scope: National (all provinces)

Who this is for

  • Eligible applicant type: Black-owned enterprises (51%+), youth-owned (18–35), women-owned, community-owned (trust/co-op); small, medium and large enterprises
  • Sector focus: Manufacturing, Services (Tourism / ICT / Logistics / Film & TV), Infrastructure / Energy, Export / Trade, Creative Industries
  • Business stage: Start-up (under 2 years), Growing Business (2–5 years), Established (5+ years)

Type of support

  • Is financial support provided: Yes
  • Support form: Debt, quasi-equity, and equity finance

Funding parameters

  • Funding approach: Repayable (loan / equity investment)
  • Funding range: R2 million – R50 million
  • Funding streams: 1. Acquisition Finance – fund the purchase of equity shares in established businesses; 2. New Venture Finance – start a new black-owned business; 3. Expansion Capital – grow an existing black-owned business; 4. Capital Markets – for BEE businesses seeking JSE listing; 5. Liquidity and Warehousing – liquidity support and warehousing of BEE shares

What the support can be used for

  • Eligible use of support: Working capital, buildings, machinery, equipment, commercial vehicles, business expansion, energy resilience/solar, export growth, buying a business or shares, feasibility studies, infrastructure; acquisition of equity, new venture creation, expansion, JSE listing, liquidity support
  • Ineligible use of support: Funding below R2 million (consider iMbewu Fund); funding above R50 million (consider Strategic Projects Fund); businesses not at least 51% black-owned

Information you will need to provide

Proof of black ownership (minimum 51%), business plan or investment proposal, financial statements or projections (audited where available), details of the transaction or funding purpose, share structure and ownership documentation, identity documents for key shareholders and directors, details of the target company (for acquisition finance)

Key requirements and conditions

How it works

  • Application route: Online application via NEF website or direct contact with NEF
  • Assessment focus: Black ownership level, business viability, developmental impact, alignment with one of the five fund products, BEE credentials

Contact and routing

0861 843 633 | https://www.nefcorp.co.za/contact-us/

Additional information

Funding is delivered through five products: 1. Acquisition Finance, 2. New Venture Finance, 3. Expansion Capital, 4. Capital Markets, 5. Liquidity and Warehousing. Supports BEE companies seeking JSE listing.

Contact and routing

Contact the National Empowerment Fund for uMnotho Fund enquiries:

Application Considerations:

What You Need to Prepare Before Applying

Most applications are delayed or declined due to incomplete submissions. Preparing the items below upfront will significantly improve your chances.

Core documents (required for almost all funds)

  • Company registration documents
  • Ownership and shareholder information
  • Business plan or project description
  • Recent financial statements or management accounts
  • Project budget and cost breakdown

Project‑specific documents (depending on the fund)

  • Quotes for equipment, infrastructure, or services
  • Feasibility study or technical proposal (where required)
  • Energy solution proposal (for energy‑related funds)
  • Export contracts or buyer information (for export and insurance products)
  • Job creation plan (where applicable)
  • Turnaround or recovery plan (for distress funding)

Additional requirements

  • Proof of sector compliance or permits (where relevant)
  • Evidence of co‑funding or financing approvals (for grants and blended funding)
  • Any templates or declarations specified by the administering agency

What Happens After You Apply

  1. Completeness check – your submission is reviewed to ensure all required documents are included.
  2. Eligibility assessment – the agency confirms that you meet the fund’s basic criteria.
  3. Technical and financial review – your project and financials are evaluated.
  4. Decision and contracting – approved applications proceed to contracting and implementation.

Timelines vary by fund and depend heavily on the quality and completeness of your application.

Important Notes for Applicants

  • Approval is not guaranteed, even if all requirements are met.
  • Funding terms may be subject to final agency approval and conditions.
  • Submitting accurate and complete information is critical.
  • Misrepresentation or incomplete information can result in delays or rejection.

Interested in this fund or have some questions?

Online Enquiry

Direct Enquiry

General Enquiries

Email Address:
enquiries@nefcorp.co.za

Contact Numbers:
0861 843 633 / 011 305 8000

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