Fostering partnerships key to a successful World Cup

Today the National Empowerment Fund (NEF) announced initiatives to help black businesses form partnerships with international businesses in the lead-up to the FIFA Soccer World Cup in 2010.

Andrew Wright, the NEF's Chief Operating Officer, said the NEF has adopted the role of facilitating the partnerships between local BEE and international companies to share skills and expertise to deliver to the countrys infrastructure and services requirements and through this enjoy greater levels of business profitability.

The announcement was made at Soccerex, the largest and only business-to-business convention for football, which includes a soccer festival and an exhibition, where the NEF has a stand. Soccerex is being held in Dubai, United Arab Emirates.

"The NEF would act on behalf of black entrepreneurs and businesses in their quest to position themselves to take advantage of the opportunities provided by the World Cup," he said. "For instance, we have taken on a lobbying role to help international companies to find partners in local black companies to carry out the work required for the World Cup." This also includes helping international firms understand the role of BEE in the South African economy and its social imperative.

Wright said the NEF is developing a database of international companies looking to partner with local businesses in order carry out work in South Africa. The NEF will be looking at growing this database at the event.

The NEF will be part of a South African delegation that will be present at the event which runs from November 26- 28, 2006.  The event is expected to attract 3000 delegates and 250 exhibitors from 275 countries.

"We are particularly proud of our Preferential Procurement financing product that assists black businesses that have either won or have been short-listed for a tender," said Wright. "We see this initiative dovetailing nicely with these efforts to facilitate partnerships."

Wright explained NEF offers bridging finance, asset finance, or term loans to black-owned businesses requiring such capital to ensure effective delivery on the contract or meet the requirements of international partners who seek such contracts.

Wright said entities that would qualify for funding are Close Corporations, Pty (Ltd) companies and Co-operatives. Partnerships and sole proprietors are not eligible.

With this and other funding products, the NEF works closely to unlock private sector finance with commercial banks. This helps mitigate risk and broaden access to finance.
 
The NEF is confident that it will become a key player in helping black business become part of the drive to get South Africa ready for the World Cup and an equally valuable partner to international corporates seeking guidance to navigate South Africas unique business environment.