national empowerment fund annual report 2013 · patriots we will serve the nation with integrity...
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National Empowerment Fund Annual Report 2013
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CRAFTING SUSTAINABLE ENTREPRENEURSNATIONAL EMPOWERMENT FUND ANNUAL REPORT 2013
His Excellency President Jacob Zuma, National Assembly, March 20 2013
His Excellency Mr Jacob Zuma, President of the Republic of South Africa
“It is critical to draw a distinction between the ownership of assets or property by a few black people, and such ownership by the majority that is still disadvantaged even after 19 years into democracy. It is an undisputable fact that white compatriots still control the South African economy and disproportionately own most of the prime land in the country.”
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D
PERFORM
ANCE
HIGH
LIGHTS
PROFILES
FUNDIN
G PRODUCTS
AND SERVICES
INVESTEE STO
RIESABO
UT THE N
EFFIN
ANCIALS
REPORTS
D
CONTENTSForeword by the Hon. Minister of Trade and Industry 1
Performance Highlights 2
About the NEF 4
Funding Products and Services 6
Report of the Chairman of the Board of Trustees 14
Report of the Chief Executive Officer 16
Trustees’ Report on Performance Information for the Year Ended 31 March 2013 22
Report on Corporate Governance 38
Report on Social, Environment and Entrepreneurial Support 43
Report of the Chief Financial Officer 49
Report of the Board Investment Committee 54
Report of the Audit Committee 56
Report of the Risk and Portfolio Management Committee 59
Report of the Human Capital and Remuneration Committee 62
Report of the Procurement Committee 64
Profiles of the Board of Trustees 67
Roles and Responsibilities of the Board of Trustees 73
Profiles of the Executive Committee 74
Annual Financial Statements 76
Investee Stories 134
Administration 156
CRAFTING SUSTAINABLE ENTREPRENEURSThe central orange globe in the image appearing on the front cover, with it’s radiating craft-like network, symbolises the NEF at the centre of innovative transformation solutions for an economically inclusive South Africa.
The NEF is at the centre of harnessing entrepreneurial energy - radiating as a well-crafted facilitator and supporter of the pillars of black enterprise - with the promise of providing solutions to black entrepreneurs.
At the heart of the values of the NEF, with the acronym EMPOWER, is the undertaking that as patriots we will serve the nation with integrity and honour, with empathy and dedication to excellence, inspired by the vision of a growing and inclusive economy. This, is our oath, our vocation, our contract with the nation.
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National Empowerment Fund Annual Report 2013
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ABBREVIATIONSAMD Asset Management DivisionApproved Final committee approval obtained, legal agreements not signedB-BBEE Broad-Based Black Economic EmpowermentBFS Bankable Feasibility StudyCP Construction PhaseCPs Conditions PrecedentDFI Development Finance InstitutionDisbursement Facilities
Legal agreements signed, all Conditions Precedent met
Drawdown Advance made against disbursed facilitiesdti Department of Trade and IndustryEC Eastern CapeEIA Environmental Impact AssessmentsETF Exchange Traded FundsFC Financial ClosureFMD Fund Management DivisionFS Free StateGDP Gross Domestic ProductGP Gauteng ProvinceIDC Industrial Development CorporationIPAP Industrial Policy Action PlanIPF Industrial Policy FrameworkIRR Internal Rate of ReturnKZN KwaZulu-NatalKPI Key Performance IndicatorLP Limpopo ProvinceMBO Management Buy-OutMOU Memorandum of UnderstandingMP MpumalangaNC Northern CapeNCOP National Council of ProvincesNEF National Empowerment FundNIPF National Industrial Policy FrameworkNW North WestPFMA Public Finance Management ActPFS Pre-feasibility studyPIU Pre Investment Business Support UnitPOIU Post Investment Business Support UnitRPMC Risk and Portfolio Management CommitteeROI Return on InvestmentSAI State-Allocated InvestmentSME Small and Medium EnterpriseSOCE State Owned Commercial EnterpriseSPF Strategic Projects FundWC Western Cape
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PERFORM
ANCE
HIGH
LIGHTS
PROFILES
FUNDIN
G PRODUCTS
AND SERVICES
INVESTEE STO
RIESABO
UT THE N
EFFIN
ANCIALS
REPORTS
STOPFraud, Corruption
and TheftContact Tip-Offs Anonymous on 0800 212 705
or email [email protected]
H
CONTACTS
www.nefcorp.co.za
Northern Cape
KwaZulu-NatalFree State
Gauteng
Western Cape
Eastern Cape
Limpopo
Mpumalanga
North West
ISBN: 978-0-621-41740-1 RP101/2013
Disclaimer: The investee sector photography contained herein is for illustrative purposes only, and must not be construed to be depicting the actual investee enterprises.
National Empowerment Fund Trust (established by Act 105 of 1998) IT: 10145/00 An agency of the dti • www.nefcorp.co.za • www.nefbusinessplanner.co.za
Head Office Gauteng ProvinceWest Block, 187 Rivonia Road, Morningside 2057, PO Box 31, Melrose Arch, Melrose North 2076 Tel: +27 (11) 305 8000 | Fax: +27 (11) 305 8001 | Call Centre: 0861 843 633 | 0861 (THE NEF) [email protected] (Funding) | [email protected] (General Enquiries)
Eastern Cape Province7b Derby Road, Berea, East London 5241 Tel: (043) 783 4200 | 0861 NEF ECP (0861 633 327) | Fax: 0861 ECP NEF (0861 327 633) [email protected]
Free State Province34 Fountain Towers, Corner Zastron and Markgraaf Street, Westdene, Bloemfontein, 9300 Tel: 0861 NEF FSP (0861 633 377) | Fax: 0861 FSP NEF (0861 377 633) [email protected]
Mpumalanga ProvinceTrust Building, 16 Brander Street, Nelspruit, 1200 Tel: (013) 754 9860 | 0861 NEF MPU (0861 633 678) | 013 754 9860 Fax: 0861 MPU NEF (0861 678 633) | [email protected]
Limpopo ProvinceSuite 8, Biccard Park, 43 Biccard Street, Polokwane 0699 Tel: (015) 294 9200 | 0861 NEF LIM (0861 633 546) Fax: 0861 LIM NEF (0861 546 633) | [email protected]
North West Province32B Heystek Street, Sunetco Office Park, Ground Floor, Rustenburg, 0299 Tel: 0861 NEF NWP (0861 633 697) | Fax: 0861 NWP NEF (0861 697 633) [email protected]
KwaZulu-Natal ProvinceSmart X - Change Building, 5 Walnut Road, Durban, 4001 Tel: (031) 301 1960 | 0861 NEF KZN (0861 633 596) Fax: 0861 KZN NEF (0861 596 633) | [email protected]
Northern Cape ProvinceTel: 0861 NEF NCP (0861 633 627) Fax: 0861 NCP NEF (0861 627 633) | [email protected]
Western Cape ProvinceSuite 2818, 28th Floor, ABSA Centre, 2 Riebeek Street, Cape Town 8001 Tel: (021) 431 4760 | 0861 NEF WCP (0861 633 927) Fax: 0861 WCP NEF (0861 927 633) | [email protected]
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