Lu­mi­nance set­tles its R34.1m NEF loan

CityPress - - Business -

Khanyi Dhlomo’s luxury shop, Lu­mi­nance, has set­tled its con­tro­ver­sial loan from the Na­tional Em­pow­er­ment Fund.

The Na­tional Em­pow­er­ment Fund (NEF) said Ndalo Luxury Ven­tures, which trades as Lu­mi­nance, had set­tled its R34.1 mil­lion loan, ap­proved in Au­gust 2012 and which Lu­mi­nance started pay­ing back in June 2013.

The loan, ap­par­ently turned down by the big banks, was mired in con­tro­versy as Dhlomo was an es­tab­lished busi­ness­woman and was open­ing a luxury store of largely im­ported goods in Hyde Park. This was con­trary to the public’s per­cep­tion of the NEF’s role. As well as this, soon af­ter the loan was granted, the NEF placed a mora­to­rium on new loan ap­pli­ca­tions un­til the fund was re­cap­i­talised. The NEF claimed it ini­tially de­clined the loan. But it said its man­date was “to grow black economic par­tic­i­pa­tion”. On top of this, Ndalo was 100% owned by black women, in­clud­ing staff and ru­ral women; was man­aged by women, 81% of whom were black; and had 31 em­ploy­ees, 91% of whom were women and youth. Ndalo also trained lo­cal de­sign­ers and ru­ral women, the NEF said.

It said it had also asked Ndalo to make changes, like in­creas­ing the share­hold­ing of ru­ral women, cre­at­ing more lo­cal manufacturing ca­pac­ity and giv­ing lo­cal la­bels ac­cess to global mar­kets.


– Mar­cia

PAID UP Khanyi Dhlomo

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.