It takes place in the small university city of Makhanda (previously known as Grahamstown),[4] in the Eastern Cape province of South Africa.

The Festival attracts significant numbers of local and international visitors and is one of the biggest contributors to the economy of the region.

Three considerations that influence decisions are the artistic merits of any submission, the creation of a varied and balanced programme, and the costs involved.

Designed to encourage the recipients in the pursuit of their careers, a key aspect of the awards is that they guarantee the artists a place on the main programme of the forthcoming National Arts Festival.

Apart from a cash prize, each of the winners receive substantial financial backing for their Festival participation whether this involves the mounting of an exhibition or the staging of a production.

A maximum of five awards are made annually in any one of the disciplines of drama, music, jazz, visual art, dance and film.

At the end of the Festival, Gold and Silver awards are selected from the list of winners, rewarding the best productions in the categories theatre, dance, comedy, music.

[21] The Arts Encounter Project distributes a number of tickets to indigent individuals to enable them to enjoy productions from the NAF's main and fringe programmes.

[23] Former radio presenter and sponsorship manager Tony Lankester served as CEO for over a decade, stepping down in 2019 to take up a position in the UK.

[26][27] The NAF embarks on numerous partnerships with foreign embassies and presenting institutions, staging several high-profile international works each year.