This Annual Report records significant progress in the work of the National Empowerment Fund (NEF) since its formation. Established in terms of the National Empowerment Fund Act 105 of 1998, the NEF has significantly improved its performance in implementing its mandate which is the provision of investment funding to Black empowered businesses, wealth-creating investment opportunities for Black individuals, investing in and funding structures in direct support of Broad Based Black Economic Empowerment (BB-BEE).

As a member of the dti family, the NEF continues to stimulate sector-targeted economic growth, as well as job and wealth creation as a direct result of its investment and funding activities. In particular, it has, through the Asonge investment offer, managed to act as a warehousing conduit for the transfer of valuable equity allocations and investments to the Black public which in turn advances broad-based and sustainable empowerment. The NEF held 1.5% of the MTN Group’s shareholding and was tasked with developing creative and effective retail products for its beneficiaries, with associated education and awareness initiatives behind these products. This is one of the ways in which government, through the NEF, hopes to assist the graduation of economic participation from the second to the first economy.

The NEF’s mandate continues to focus on funding BB-BEE opportunities, including new and existing Black owned businesses, as well as promoting a savings and investment culture among Black beneficiaries.

Thus far, government, is pleased that up to and including the period 31 March 2009, the NEF, through its funding activities, had approved in excess of R1.4 billion, having disbursed a cumulative R978 million on 160 transactions. Although much still needs to be done in extending access to finance, measures are in place to expand the above mandate such as the recent launch of the strategy for the funding of Small Medium Enterprises.

Through its various projects and portfolios, the NEF will continue to expand, and include future releases of investment products with the addition of other savings products that will be structured around newly sourced and acquired assets.

As a gazetted “BEE Facilitator” in terms of the BB-BEE Codes of Good Practice, ensures that the NEF will continue playing a meaningful role as a facilitator of full Black ownership status. Utilising its BB-BEE facilitator status will ensure that the NEF continues to provide effective intervention strategies in championing the ideal of an inclusive economy.

We look forward to the continued creativity of the NEF in fulfilling its mandate, and are assured of its contribution to the nation’s economic growth through ongoing engagement with the dti, National Treasury and members of the Parliamentary Portfolio and Select Committees.

Congratulations to the Board of Trustees, management and staff of the NEF for yet another successful year, to 86 000 Asonge investors for earning dividends on their shares and growing their investment by an average 60% throughout the investment period, and to those empowered entrepreneurs who have merited support from the NEF, for starting and growing their existing enterprises.

We wish you all even greater success going forward.