Announcing the investment on Thursday, the NEF noted that, with the imminent finalisation of the government's Health Charter, pharmaceutical manufacturers that anticipate supplying the government healthcare tender market were gearing up to meet the Charter's black economic empowerment (BEE) requirements.
The NEF, which operates under the umbrella of the department of trade and industry, assists companies in attaining their BEE goals by providing a broad range of finance to historically disadvantaged people.
This is facilitated through structures that are suitable for both the business and BEE party, such as workers trusts and put or call options on shares being held by the NEF.
In terms of the Enaleni deal, the NEF's investment had enabled 41 employees to purchase 5% of the business, while Enaleni had provided a share ownership scheme for the remaining employees.
The staff would repay the finance through a combination of cession of dividends, salary sacrifice and share appreciation.
Campbell Barnes, NEF fund manager said: "The Enaleni share price has performed favourably since the June 10 listing, rising in excess of 50%.
Enaleni is favourably positioned to meet the Health Charter requirements as brand owners and manufacturers of pharmaceutical, personal care, vitality and wellness products.
They are also contract manufacturers to large South African companies such as Pharma Dynamics and multi-nationals like Reckitt-Benckiser SA and Merck SA, with which it has also concluded strategic tender agreements aimed at the government healthcare market."
Stan Whitfield, Enaleni's chief financial officer, added that the NEF-funded staff share option scheme, together with the company's share scheme in terms of which all historically disadvantaged staff were awarded up to 3 000 rand worth of shares, had seen the company's BEE ownership increase to 34% and that Enaleni was committed to achieving its goal of being 51% black owned within the foreseeable future.
The NEF funding would be repaid over five years.
"The NEF has a good appetite for risk and is willing to share risk with historically disadvantaged South Africans (HDSA).
Therefore the Enaleni funding comprises a hybrid of loans and equity to lower the cost of capital for the BEE participants," Barnes concluded.