NEF RCD Acquisition

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Organisation: National Development Fund

Rural and Community Development Fund (RCD) was designed to promote sustainable change in social and economic relations and supporting the goals of growth and development in the rural economy, through financing of sustainable enterprises. This would be achieved through the mobilisation of rural communities in legal entities or cooperatives, in order to participate in the broader economic activities and realise the economic transformation goals in rural South Africa.

This product was designed to cater for rural entrepreneurs or communities seeking to buy equity in existing rural and community enterprises focusing on small to large ventures where partnerships between NEF, BEE parties or community entity and technical partner is involved.

Funded Sectors:

  • Agro Processing and Manufacturing
  • Eco-Tourism
  • Forestry and Fisheries
  • Commercial Property
  • Aqua and Marine Culture
  • Non – Farm Activities (rural based)

Qualifying Businesses:

  • Projects must be financially sustainable
  • BEE applicants should be actively involved in the day-to-day operations of the business
  • Technical partners should be actively involved in the day-to-day operations of the business
  • The NEF will invest using debt, equity and quasi-equity instruments
  • Minimum black ownership of 25.1% is a requirement
  • Joint ventures between black and non-black partners to support skills transfer
  • The business should be able to repay NEF’s investment
  • The business must have a clear value-add with a sustainable business case
  • The NEF will exit from the investment in 5 to 10 years
  • The NEF reserves the right to oblige applicants to participate in the NEF mentorship programme
Documentation of Application:
Start-Up Business:
  1. Application form
  2. Business Plan
  3. Five (5) year financial projections (Income Statement, Balance Sheet and monthly Cash Flow Statement) with first year prepared on a monthly basis
  4. Personal Statements of Assets and Liabilities of all members or directors including those of spouses if person is married in Community of Property
  5. Certified ID copies of all members or directors
  6. Registration documents and all the relevant legal documents relevant to the entity
  7. Detailed profile of the Franchisor
  8. Historical financials of other franchises that are similar in size and in similar locations
  9. Indication from the Franchisor of how much a new Franchise in a similar location would cost
  10. Indication of whether the lease agreement will be ceded to the new company after the sale or a new lease agreement will be signed if lease is ceded, how long will it still run before renewal? New lease if it is a new franchise.
  11. Fica compliance – Proof of residence
  12. Detailed CV of principle Applicant
Existing Businesses:
  1. Application Form
  2. Business Plan
  3. Affidavit from members or directors that they are aware of the contents of the application form
  4. Three (3) year audited financials (Income Statement, Balance Sheet, Cash Flow Statement)
  5. Five (5) year financial projections (Income Statement, Balance Sheet and monthly Cash Flow Statement) with first year prepared on a monthly basis
  6. Recent management account (Income Statement and Balance Sheet)
  7. Personal Statements of Assets and Liabilities of all the members or directors including those of spouses if person is married in Community of Property
  8. Business bank statement for the past twelve (12) months
  9. Certified ID copies of all member or directors
  10. Registration Documents and all the relevant legal documents relevant to the entity
  11. Detailed profile of the Franchisor
  12. Details of why the business is for sale
  13. Sale Agreement
  14. Franchise Agreement
  15. Historical financials of other franchises that are similar in size and in similar locations
  16. Indication from the Franchisor of how much a new Franchise in a similar location would cost
  17. Indication of whether the lease agreement will be ceded to the new company after the sale or a new lease agreement will be signed if lease is ceded, how long will it still run for before renewal? New lease if it is a new franchise.
  18. The prospective buyer must have been approved by the franchisor
  19. Fica compliance – Proof of residence
  20. Detailed CV of principle Applicant*
*www.nefcorp.co.za
Offices – All 9 Provinces
Application Process – Physical or Email(applications@nefcorp.co.za)

Contact Details

Website: http://www.nefcorp.co.za
Telephone: 0861 843 633
Email: info@nefcorp.co.za
Related Documents:
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