The Minister of Trade and Industry, Dr Rob Davies has requested a detailed report from the National Empowerment Fund (NEF), regarding the funding of Ndalo Luxury Ventures (NLV).

The NEF approved a total R34,1 million in loan finance to NLV for the construction of the Luminance store, procurement of stock from local and international suppliers, and the local manufacture of a clothing range for the Luminance brand.

Davies says that it will be premature for him to comment about the transaction before he receives the report. However, he told the Portfolio Committee on Trade and Industry what he expects to see in the report regarding the transaction.

"Among the other things I want to hear about this particular transaction, is whether the transaction has or has not been within the framework that we have been articulated for, on empowerment. It must support productive sector entrepreneurship and support local productive activity in our country," said Davies.

He added that government wants to see more and more public funds supporting empowerment and the actual people who are getting involved in the productive sector of the economy and also in local productive activities.

Minister Davies stated that up to now the NEF has been doing good work, and increasing part of its portfolio has included supporting small businesses and strategic investment.

Davies says that the report will determine whether there is a need to amend the mandate for transactions by the NEF.

"It is premature for me at this stage to say whether that is the case or not; we want the report in this regard," he said.

Issued by: Department of Trade and Industry