What will R100bn fund fix?

BUSINESS LEADERSHIP SA: 'CONCEPT PAPER HAS LITTLE ANALYSIS OF PROBLEM TO BE SOLVED'

- Ina Opperman

The minister of trade, industry and competition published a concept document last week regarding the department's R100 billion Transformation Fund for public comment — but it is not clear what the problem is that government wants to solve with the fund.

According to Minister Parks Tau, the aim of the fund is to gather Enterprise and Supplier Development (ESD) funds to support transformation and the participation and sustainability of black-owned enterprises in the economy.

"This provides an opportunity for the seventh administration, working with the private sector, to increase the effective economic participation of black-owned and managed enterprises, including small, medium and micro enterprises and cooperatives and enhance their access to financial and non-financial support in line with the requirement of the B-BBEE Act," Tau said.

It is expected that R100 billion will be gathered over the term of the current administration through a joint effort by government in partnership with the private sector.

"We are firmly in pursuit of transforming the economy as guided by Vision 2030 of the National Development Plan, which is to eliminate poverty and reduce inequality.

"Our constitutional imperative places a collective burden on all of us to advocate for equality and redress."

However, not everyone is excited about the fund.