By Ms Nomazizi Siphondo, Head of the Women Empowerment Fund and Acting uMnotho Fund Manager, National Empowerment Fund
This Women’s Month, we at the National Empowerment Fund (NEF) proudly commemorate a milestone that is both a testament to progress and a beacon of ongoing commitment: the 10th anniversary of our Women Empowerment Fund (WEF). 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. This substantial investment has not only provided vital capital but has also 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 Women Empowerment Fund stands out not merely for its financial support but for its holistic approach to empowering women entrepreneurs. We offer preferential pricing, reducing financing margins for businesses with female ownership. This 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 women-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 women 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 R495 million in potential approvals, underscoring the strong demand and vibrant opportunities for women-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 R41 million 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 FY 2024, 37% of NEF’s disbursements were allocated to women-empowered businesses, demonstrating our unwavering commitment to advancing female entrepreneurship.
However, we acknowledge that women entrepreneurs still face significant barriers, including limited management skills, inadequate access to affordable capital, and market entry challenges. Addressing these issues is central to our mission. Our concessionary funding approach, coupled with targeted investor education and strategic partnerships, aims to overcome these obstacles and enhance market access.
As we celebrate the 10th anniversary of the Women Empowerment Fund, we reaffirm our commitment to supporting women-led enterprises across various sectors, including property, tourism, manufacturing, and energy. The diverse potential within these industries reflects the growing ambition and resilience of South Africa’s women entrepreneurs.
The WEF’s 10-year milestone is both 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 women entrepreneurs, driving economic growth, and contributing to a more inclusive and equitable future for all.
