NEF Boosts Local Manufacturing And Youth Entrepreneurship With Pascal Investment
NEF Boosts Local Manufacturing And Youth Entrepreneurship With Pascal Investment. The National Empowerment Fund (NEF) is pleased to announce its investment in Pascal Interior Designs and Carpentry Services, a black youth-owned company specialising in high-end interior design and custom cabinetry.
Established in 2018 by entrepreneur, Mr Pascal Hlongwane, Pascal Interior Designs and Carpentry Services has captured significant market attention through its bespoke carpentry offerings including kitchens, built-in cupboards, vanity bars, and wine cellars. Pascal initially outsourced manufacturing but shifted to in-house production due to strong market demand.
“Pascal Interior Designs and Carpentry Services exemplifies the entrepreneurial spirit and innovation that the NEF aims to support,” said Acting Strategic Projects Fund Manager Mr Cornelius Mdluli. “Our investment will not only foster local manufacturing capabilities but also create new jobs, contributing to youth empowerment and economic development.” Pascal’s commitment to youth empowerment is reflected in its workforce which is predominantly composed of young South Africans, averaging 33 years of age. The company currently has a total of 44 permanent employees and the NEF’s investment will create an additional 15 jobs, prioritising recruitment from local communities and enhancing skills in furniture manufacturing and design.
The investment aligns with the NEF’s strategic priorities in fostering local manufacturing capacity. Pascal’s expansion plans include in-house stone cutting facilities and a prestigious showroom in Sandton’s Kramerville, aimed at bolstering production efficiency and attracting high-end clientele. By addressing current production limitations and enhancing product quality, Pascal aims to penetrate the SADC market while reducing dependency on outsourced services. Mr Hlongwane said: “We are grateful to the NEF for their support in this pivotal phase of our expansion. This investment will enable us to enhance our production capabilities, expand our market reach and continue delivering exceptional artisanry to our clients. With NEF’s backing, we are confident in our ability to achieve significant milestones in the local and international furniture markets.”
The initial investment of R5.3 million into the business by Mr Pascal was in recognition of the favourable market response to their offering and products. This enabled the company to lease factory space and acquire much needed specialised equipment, a move that empowered the company to bring the manufacturing process in-house, ensuring greater control of the quality of product produced. In addition, the investment allowed Pascal to establish a sophisticated showroom at their manufacturing site to showcase its premium product line-up in a captivating manner.
The company has primarily focused on offering its products within the Midrand and surrounding areas. However, the business is actively exploring opportunities to broaden their operational footprint at a local level, aligning with a strategic vision to eventually enter global markets. Current operations have already been adjusted to allow for products to be transported and assembled easily when exporting becomes a realistic option.
The furniture manufacturing industry in South Africa remains resilient despite challenges, adapting to meet diverse consumer needs and global trends. NEF’s partnership with Pascal Interior Designs and Carpentry Services underlines its commitment to fostering local entrepreneurship and enhancing economic growth. “Most companies in the sector are small, with 61% employing fewer than 10 people. Only a few larger entities employ over 100 staff, primarily concentrated in Gauteng. Black ownership in the sector is growing, with several black-owned companies involved in raw materials, manufacturing, and retail, highlighting the emergence of black industrialists and medium-sized manufacturers with significant growth potential,” Mr Mdluli concluded.
