UIF and NEF Launch R1 Billion Fund to Support Black-Owned Businesses and Jobs
UIF and NEF Launch R1 Billion Fund to Support Black-Owned Businesses and Jobs. The Unemployment Insurance Fund (UIF) and the National Empowerment Fund (NEF) have launched a R1 billion fund aimed at providing seed capital and financial support to qualifying Black-owned and Black-managed businesses.
The fund was launched in Johannesburg by Employment and Labour Minister Nomakhosazana Meth, with the UIF and NEF each contributing R500 million.
The partnership is intended to expand access to finance for businesses while supporting enterprise sustainability, job creation and job retention.
Meth said the initiative brings together the employment and labour activation mandate of the UIF with the NEF’s enterprise finance and development capabilities.
She said supporting small businesses to start, survive and grow is important to creating employment at scale.
The partnership forms part of the UIF’s broader Labour Activation Programme (LAP), which supports employment creation, skills development, entrepreneurship and economic participation.
Meth said the department is repositioning the LAP around three areas: skills development based on real demand, workplace experience and placements, and enterprise support to help Micro, Small and Medium Enterprises create jobs.
The programme is intended to recruit 200,000 unemployed people during the 2026/27 financial year, contributing to a medium-term target of 605,000 beneficiaries.
DTIC Deputy Minister Zuko Godlimpi said the fund demonstrates the value of partnerships between government institutions in addressing unemployment and supporting enterprise development.
He said the joint initiative would also help bridge enterprise development and skills training by combining financial support with mentorship and technical assistance.
Godlimpi noted that South Africa’s unemployment rate stands at 33.6%, saying greater coordination is needed among institutions involved in job creation, enterprise development and infrastructure development.
The fund was launched under the theme, “Investing in Enterprises. Advancing Employment. Driving Transformation”.
Meth said the initiative’s success would ultimately be measured by the businesses and jobs it helps create. She said supported enterprises should be able to secure customers, expand production and employ more people.
