Nesa Enterprise Development Fund

  • "An imbalance between rich and poor is the oldest and most fatal ailment of all republics."

    - Plutarch, Greek historian, first century AD

About

The Nesa Enterprise Development Fund focuses on enterprise and supplier development and job creation in South Africa. The primary objective of the fund is to promote inclusive growth in the South African economy through the provision of financial and technical assistance to small and growing businesses in order to create social impact. Social impact is measured by the direct number of jobs created in the underlying businesses supported by the fund.

The Nesa Enterprise Development Fund provides working, growth and expansionary capital to small, medium enterprises (SMME's) and small growing businesses (SGB's) with the propensity to create sustainable jobs in South Africa.

The fund is a professionally managed turnkey solution for investors’ enterprise and supplier development obligations and are given exposure to a portfolio of SMME's and SGB’s in South Africa with the propensity to create permanent jobs. Investment into the fund is eligible for both enterprise and supplier development BBBEE points and fees deducted by the manager are eligible for procurement BBBEE points.

The Nesa Enterprise Development fund is a registered credit provider with the National Credit Regulator (NCRCP7031)

How the Fund Works

Investor Benefits & BBBEE Scorecard Impact

Key Benefits

The Nesa Enterprise Development Fund is a social impact investment fund that offers investors the following key benefits:

BBBEE Scorecard impact

The Nesa Enterprise Development Fund provides immediate BBBEE benefits in the following BBBEE scorecard sections*:

REVISED SUPPLIER & ENTERPRISE DEVELOPMENT SCORECARD (1 MAY 2015)

Weighting points

Compliance target

Nesa Impact

2.1 Preferential Procurement

B-BBEE Procurement Spend from all empowering suppliers based on the B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend

5

80%

B-BBEE Procurement Spend from empowering Suppliers who are Qualifying Small Enterprises based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend

3

15%

B-BBEE Procurement Spend from all exempt micro Enterprises based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend

4

15%

B-BBEE Procurement Spend from Empowering Suppliers that are at least 51% black owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend

9

40%

B-BBEE Procurement Spend from Empowering Suppliers that are at least 30% black women owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend

4

12%

Bonus Points

B-BBEE Procurement Spend from Designated Group Suppliers that are at least 51% black owned

2

2%

2.2 Enterprise and Supplier Development

Annual value of all Supplier Development Contributions made by the Measured Entity as a percentage of the target.

10

2% of NPAT

Annual value of Enterprise Development Contributions and Sector Specific Programmes made by the Measured Entity as a percentage of the target.

5

1% of NPAT

2.3 Bonus

Graduation from ED to SD

1

One or more jobs created by under 2.2

1

Total Points (+bonus points)

40 (+4)

This table is intended to be used as an indicative guide only and is based on the latest scorecard information provided by the DTI as well as certain assumptions made by Nesa Capital (Pty) Ltd. Please consult with your BEE verification agency should you have any doubt about the nature and extent of your enterprise and development spend.

Calculate My BBBEE Investment

Company Net Profit After Tax
enter an amount then click calculate
Enterprise Development Supplier Development Procurement
Required Spend (Percentage of NPAT) 1% 2%
Fund recognition factor 70% 70% 162%
Initiation/administration/intermediary fee 2,50% 2,50% 2,50%
Total Required Investment (Including Fees)
- Enterprise Development R146.43
- Supplier Development R292.86
R439.29
Recognised values Under Scorecard:
- Enterprise Development R100.00
- Supplier Development R200.00
- Procurement Spend R17.36

Disclaimer: This calculator is intended to be used as an indicative guide only and is based on certain assumptions made by Nesa Capital (Pty) Ltd. Please consult with your BEE verification agency should you have any doubt about the nature and extent of your enterprise and development spend.

Fund Performance

Fund Reporting

Reporting Standards

The fund provides reports and feedback to its investors and contributors which details financial and social impact performance on a regular basis.

All impact reporting is compiled in terms of IRIS. IRIS is the catalogue of generally accepted performance metrics that leading impact investors use to measure social, environmental and financial success, evaluate deals and grow the credibility of the impact investing industry.

To learn more about IRIS, please visit http://iris.thegiin.org/

Financial and Impact Reports

Please click here to view the fund’s latest social impact investment report.

Please click here to view the fund’s latest fact sheet.

How to invest in the fund

Investors wishing to make an investment into the fund or wish to learn more about the benefits of making an investment into the fund are requested to please contact the Nesa Capital offices.

SMME Finance Application

Prospective SMME's and SGB's wishing to apply to the Nesa Enterprise Development Fund for finance are firstly required to meet the following commercial attributes as a minimum to be considered for support:

  1. SMME must demonstrate a creation of at least one permanent job per R500 000 of capital advanced.
  2. SMME is primarily resident in South Africa.
  3. Minimum 24 months of operation with existing cash flow generation from operations.
  4. In possession of a business plan demonstrating capital from the fund will be used to expand existing operations.
  5. Be in possession of valid tax clearance certificate and audited/reviewed historical financial statements.

In addition, SMME's must be able to demonstrate that they meet the definition of an enterprise or supplier development beneficiary in terms of the revised BBBEE codes i.e. be 51% black owned, or demonstrate that they will meet this definition as part of receiving support from the fund.

To apply for financial support from the Nesa Enterprise Development Fund, please complete an application form and submit the completed form along with all supporting documents to your nearest Nesa Capital office or via email.