NEF Furniture Industry Fund Applications Now Open for South Africans. The National Empowerment Fund invites qualifying enterprises to apply and improve their competitiveness.
The Furniture Industry is labour-intensive and has the potential to create many jobs and replace substantial imports. Over 10 000 jobs have been lost in the industry over the last 10 years and more than half of the businesses in this sector have closed-down, underlining the need for more support for the industry.
Through the Government’s Master Plan for the Furniture Industry, the door has been opened for local manufacturers to identify opportunities in the production of office and school furniture among the designated products for preferential procurement purposes.
To support this objective, the NEF will be providing business loans to the industry for a maximum of R5 million per transaction.
Purpose of the Furniture Fund
The objectives are to:
- Assist qualifying enterprises in the furniture industry to improve their competitiveness,
- Assist companies in distress to survive the current economic downturn,
- Increase the localisation of productive output within the value-chain,
- Promote economic inclusion in support of equitable growth,
- Strengthen partnerships between retailers and their suppliers, and
- Maintain and increase current employment.
Criteria
- Be a registered legal entity in South Africa in terms of the Companies Act, the Close
- Corporations Act and others. Be a taxpayer in good standing with SARS.
- Ensure that current employment is maintained.
- Ensure that raw materials are sourced from local suppliers, and where it is not possible, supporting documentation should be provided.
- Operate in the following furniture sub-sectors:
> Mattresses and base components,
> Lounge and upholstered goods,
> Case goods – items of furniture based on board products such as cupboards, tables, pedestals, display and storage units,
> Kitchen and built-in units, and
> Any other furniture-related business including school furniture.
Target market
The Fund targets mainly SMEs. The businesses will be supported if:
- They meet the NEF’s financial, marketing, technical and environmental requirements, Jobs will be retained or created through the funding,
- All types of enterprises will be supported including start-ups, expansions and expansionary acquisitions,
- The funding can be in the form of debt or equity,
- The interest will range from 0% to 5%, and The maximum tenure of the funding is up to 84 months.
- The funding will be available for all aspects of businesses operating in the Furniture Industry including funding for equipment and expansion finance, funding for quality assurance and environmental requirements as well as working capital.
NEF Furniture Industry Fund Applications Process
Applicants can submit their applications to the following email address: [email protected]
For more information please call:
0861 843 633 (0861 THE NEF).
The NEF is a member of the dtic Group
