The National Empowerment Fund (NEF) is a catalyst for Broad-Based Black Economic Empowerment (B-BBEE) in South Africa. The NEF promotes, enables, implements, and develops innovative investment and transformation solutions to advance sustainable black economic participation in the economy. The NEF, through iMbewu Fund, has allocated R50 million in affordable loan facility towards Black entrepreneurs that are interested in acquiring an ENGEN retail service station. This is available throughout any of the 9 provinces of South Africa. The NEF filling station funding will empower South Africans to reap the benefits of one of the most dynamic industries in the country.
It is envisaged that this funding will lead to an increase in Black owned service stations. Allowing for further penetration and increase in the provinces that are still lagging behind. This includes Mpumalanga, Limpopo and the Eastern Cape.
It is within the context of the Liquid Fuels Charter and the Petroleum Products Amendment Act (PPAA), which integrates into law the requirements of promoting BEE, that the relationship between the NEF and ENGEN is founded. These bodies share the common vision of promoting the advancement of Black South Africans in several tangible forms. This includes shareholdings of existing and future oil companies operating in South Africa, the need to gradually increase the allocation of procurement budgets to BEE suppliers, and increasing Black owned and operated retail sites or dealerships in the country.
Black potential entrepreneurs are required to put up between 10% and 20% of the purchase price. The NEF provides financing for the balance. ENGEN also stands as surety for half of the average R5 million purchase price, and covers training, evaluation, and business support costs. ENGEN requires that entrepreneurs cover 60% of the purchase price, however lowering the level of own contribution required for these deals are aimed at making service station ownership more accessible for black entrepreneurs.
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