By Nomazizi Siphondo
This Women’s Month, we at the National Empowerment Fund (NEF) proudly commemorate a milestone that is a testament to progress and a beacon of commitment: the 10th anniversary of our Women Empowerment Fund.
Since its inception in 2014, the WEF has been at the forefront of revolutionising economic opportunities for black female entrepreneurs across South Africa, blending financial and non-financial support to foster growth and innovation in their ventures.
Over the past decade, the WEF has made an indelible mark, disbursing an impressive R4.5 billion.
The substantial investment has provided vital capital and catalysed significant growth across diverse sectors including construction, student accommodation and service stations.
Our journey has been one of supporting resilient and visionary women who are transforming entrepreneurial dreams into thriving realities.
The WEF stands out not merely for its financial support but for its holistic approach to empowering woman entrepreneurs. We offer preferential pricing, reducing financing margins for businesses with female ownership. The concessionary pricing significantly lowers capital costs, easing the path to essential funding. Our goal is clear: to dismantle barriers and make financing more accessible for woman-led businesses.
Beyond financial assistance, the WEF is committed to comprehensive support through mentorship, networking opportunities and tailored training. We understand that entrepreneurial success is often as much about guidance and connections as it is about funding.
By connecting entrepreneurs with seasoned professionals and a robust network of industry contacts, we provide the tools necessary to navigate business challenges and seize new opportunities.
Our commitment to supporting woman entrepreneurs remains steadfast, with a significant disbursement target of R675 million for the current financial year.
Of this, 35% is earmarked specifically for the WEF, highlighting our dedication to empowering women and investing in their success. As of August 2024, our pipeline boasts R495m in potential approvals, underscoring the strong demand and vibrant opportunities for woman-led ventures.
Among the WEF’s success stories is Smith Capital Equipment, a prime example of how our investment can transform businesses. In 2015, our R41m investment enabled Isipho Capital Engineering to acquire Smith Capital Equipment, leading to its majority black woman ownership. Under CEO Fortunate Mdanda, Smith Capital has become a leader in manufacturing aerial platforms and drilling rigs, supporting 75 jobs and reinforcing local manufacturing capabilities.
Despite challenges, such as the disruptions caused by the Covid-19 pandemic, our impact remains robust.
In the financial year 2024, 37% of NEF’s disbursements were allocated to woman-empowered businesses, demonstrating our unwavering commitment to advancing female entrepreneurship.
However, we acknowledge that woman entrepreneurs face significant barriers, including limited management skills, inadequate access to affordable capital and market entry challenges.
Addressing the issues is central to our mission. Our concessionary funding approach, coupled with targeted investor education and strategic partnerships, aims to overcome the obstacles and enhance market access.
As we celebrate the 10th anniversary of the Women Empowerment Fund, we reaffirm our commitment to supporting woman-led enterprises across various sectors, including property, tourism, manufacturing and energy.
The diverse potential within the industries reflects the growing ambition and resilience of South Africa’s woman entrepreneurs.
The WEF’s 10-year milestone is a celebration of our achievements and a call to action. As we honour Women’s Month, we remain dedicated to advancing the success and empowerment of woman entrepreneurs, driving economic growth and contributing to a more inclusive and equitable future for all.
Nomazizi Siphondo, the head of the Women Empowerment Fund and Acting uMnotho Fund Manager, National Empowerment Fund.
BUSINESS REPORT