R100BILLION BBBEE FUND @KASIBCNEWS

R100BILLION BBBEE FUND @KASIBCNEWS

The Department of Trade, Industry and Competition (the dtic) wishes to contextualise the objectives of the Transformation Fund and the process underway to generate discussion and arrive at consensus for its eventual implementation. This Fund is a critical initiative that advances South Africa’s constitutional commitment to economic redress and inclusive growth, which the dtic is bound by. Rooted in Section 9(2) of the Constitution, it aims to promote shared equality through legislative and other measures to empower black-owned enterprises and small, medium, and microenterprises (SMMEs).

The Fund also reflects the statement of intent of the Government of National Unity (GNU), which emphasizes fostering redress and inclusive economic growth. The GNU’s transformative agenda seeks to dismantle systemic barriers to economic participation, ensuring that historically-disadvantaged communities are afforded equal opportunities to thrive in all sectors of society.

In addition to advancing the constitutional imperative of economic redress, the Fund is anchored in the Broad-Based Black Economic Empowerment (B-BBEE) Act, particularly Section 2(h), which obligates government 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." The Fund directly addresses these priorities while promoting greater compliance with B-BBEE requirements and unlocking opportunities for sustainable growth.

Aligned with the National Development Plan’s (NDP) Vision 2030 to eliminate poverty and reduce inequality, the Fund supports Outcome 4: decent employment through inclusive economic growth. It also reinforces the Department’s Medium-Term Development Plan (MTDP) 2024–2029, which prioritizes job creation and inclusive economic participation, as outlined in the revised Annual Performance Plans (APPs). 

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Objectives of the Transformation Fund:

The Transformation Fund:

1. Promotes Economic Inclusion: Provides financial and non-financial support to black-owned enterprises, ensuring meaningful participation in the economy.

2. Addresses Fragmentation: Aggregates resources from existing Enterprise and Supplier Development (ESD) obligations and other

sources to enhance impact and efficiency.

3. Fosters Sectoral Growth: Focuses on high-impact sectors, including agriculture, tourism, ICT, manufacturing, and businesses in township and rural areas.

4. Enhances Market Access: Offers technical assistance, pre- and postinvestment support, and market access opportunities to beneficiaries.

5. Supports Industrialization: Aligns with South Africa’s industrial policy to stimulate growth in productive sectors and underdeveloped areas.

The Minister of Trade, Industry, and Competition, Mr. Parks Tau, states, “The Transformation Fund is not about imposing new obligations but about ensuring that existing commitments under the B-BBEE legislation are strategically utilized to create meaningful economic transformation. It embodies our constitutional mandate to achieve equality and empower historically disadvantaged communities.”

As outlined in the Department’s revised Annual Performance Plans (APPs), the Fund’s conceptual framework will be opened for public consultation and stakeholder engagement with a target to mobilize R100-billion by 2029. We welcome the ongoing

debate on transformation and look forward to broad participation during the consultation process. This timeline underscores the dtic’s commitment to achieving sustainable and impactful transformation.

Minister Tau adds, “The Transformation Fund is not merely a funding mechanism, it is a catalyst for change. Through collaboration with the private sector, civil society, and other stakeholders, we will create an economy that is inclusive, sustainable, and reflective of South Africa’s diversity.”

R100BILLION TRANSFORMATIVE FUND @KASIBCNEWS

R100BILLION TRANSFORMATIVE FUND @KASIBCNEWS 

The African National Congress (ANC) welcomes the proposal for a R100 billion Transformation Fund as a bold and transformative initiative. This proposal gives concrete form and substance to our country’s constitutional principles of equality and redress. The proposed Fund seeks to address critical barriers faced by black entrepreneurs, particularly with limited access to finance, markets, and technical support. 

This initiative aligns with the ANC’s broader commitment to inclusive growth, job creation, and addressing historical inequalities, as outlined in our National Conference resolutions by empowering previously marginalized communities.  This is a comprehensive initiative aimed at empowering Black entrepreneurs, addressing market failures, and fostering inclusive economic growth. 

The proposed Fund focuses on entrepreneurship, procurement, and franchise finance, with a target of ensuring 40% ownership and management by Black women entrepreneurs. It also promotes township and rural development through funding for new ventures, acquisitions, and expansions, while supporting early-stage investments to empower Black industrialists and deliver transformative, long-term socio-economic benefits. 

The proposed Fund includes a Designated Groups Fund to increase the economic participation of Black women, youth, and people living with disabilities by improving access to capital and building entrepreneurial capacity. 

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Additionally, the Rural, Township, and Community Development Fund revitalizes local economies and infrastructure in underdeveloped areas.  It also includes the Venture Capital Fund that will support Black-owned enterprises through acquisition, expansion, and new venture finance, focusing on projects of national importance that create jobs and enable further transformative investments. 

This initiative represents a bold step toward addressing historical inequalities and building a more inclusive and equitable economy for all South Africans. The ANC notes with concern the opposition to this transformative proposal from certain anti-transformation elements. 

This resistance reflects a troubling unwillingness to embrace efforts aimed at achieving economic inclusion and addressing the legacy of historical injustices. Such opposition risks undermining equitable economic growth and delaying meaningful progress for all South Africans. 

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It is imperative to remind those resistant to transformation that, as Parties in the Government of National Unity (GNU), there is a shared commitment to the priorities of the 7th administration. These priorities, articulated in the statement of intent, emphasize the urgent need for rapid, inclusive, and sustainable economic growth to achieve a more just and equitable society. 

The ANC remains resolute in supporting progressive proposals that advance transformative objectives and foster economic empowerment for all South Africans. 

AFRICAN NATIONAL CONGRESS LEKGOTLA 2025 @KASIBCEVENTS

 

AFRICAN NATIONAL CONGRESS LEKGOTLA 2025 @KASIBCEVENTS

The African National Congress (ANC) will hold its annual National Lekgotla from Saturday, 25 January to Monday, 27 January 2025. The Lekgotla serves as a critical platform for the ANC to review the implementation of its 2024 priorities and develop the organization’s Programme of Action for 2025. 

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The Lekgotla will focus on the implementation of the ANC Manifesto, the renewal and rebuilding of the organization, and strategic interventions to tackle pressing socio-economic challenges. 

Discussions will emphasise inclusive economic growth, basic service delivery, and the fight against poverty, corruption, and inequality. 

Abomashonisa Overcharge Interest @KASIBCNEWS

Abomashonisa Overcharge Interest @KASIBCNEWS 

This season is challenging for some consumers to the extent that they need to apply for credit to meet their financial obligations such as school fees, school uniforms, transport and rent, among others. 

The Gauteng Office of Consumer Affairs urges consumers who will be borrowing this month to be wise and ensure that credit providers do not violate their rights. Unregistered credit providers such as Abomashonisa overcharge interest, and take consumers’ identity documents and SASSA cards to enforce payment. This is unfair business practice, says Ms Milly Viljoen, Director: Education, Awareness and Stakeholder Relations.  Sometimes, when consumers’ credit applications decline, consumers resort to borrowing from Abomashonisa.  

However, this does not help the consumer because of the exorbitant interest rates that are charged by these unregistered credit providers.  If your application is declined by all registered credit providers, it means that you have a bigger financial problem than you realise. Rather seek assistance by negotiating for lower instalments with your current credit providers, paying off and closing some accounts than accessing more credit through unregistered credit providers, adds Viljoen.  According to the Consumer Protection Act (CPA), consumers have a right to receive information in plain and understandable language. Consumers should read and understand the terms and conditions, and further ask questions if they seek clarity. 

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This will allow them to understand Credit Life Insurance, which can be a lifesaver when they are unable to repay the debt due to loss of income, unemployment, disability, etc.  Ms Viljoen provides the following tips to consumers: • Borrow only when it is necessary.  Avoid using credit for consumables such as groceries. • Verify the authenticity of credit providers, even the ones that are advertising on social media, by contacting the National Credit Regulator first before applying for credit. 

Unregistered credit providers will make you more financially constrained by overcharging interest. • Understand the additional cost that comes with credit. The cost of credit includes interest rates, once-off initiation fees, monthly service fees, credit life insurance, etc. Consumers should read and understand the pre-agreement statement and quotation which will include all the costs involved. • Do not sign immediately when applying for credit. The pre-agreement or quotation has five (5) days cooling period. 

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Sign ONLY when you understand the terms and conditions. • Do not sign a blank credit agreement/document. Read, understand, and ask relevant questions if you seek clarity. Sign ONLY when satisfied with the terms and conditions. • Check your credit report often- You are entitled to a free credit report once a year. You have the right to dispute any information that is wrongfully written on your credit profile. • Do not agree to pay an ‘upfront fee’ when applying for credit. Fake credit providers may force you to pay a fee before granting you credit. 

 The Gauteng Office of Consumer Affairs works with different stakeholders in consumer protection to ensure that consumer rights are protected. Thus, consumers should contact the National Credit Regulator on 0860 627 627 or e-mail complaints@ncr.org.za to report unregistered credit providers or any credit provider that violates their consumer rights in the credit industry.  

GAUTENG MARKETS ROTTEN FOOD @KASIBCNEWS

GAUTENG MARKETS ROTTEN FOOD @KASIBCNEWS

Farmers are losing hundreds of rands of fresh produce at Gauteng's markets in Tshwane, Johannesburg, and Vereeniging. This is due to lack of proper and regular maintenance of equipment like cooling and cold rooms. Residents are at risk of food shortages as a result.

These fresh produce markets are controlled by municipalities and sadly impractical for residents who face the obstacle of long distances to access these markets. Residents also have an added fear of being mugged for their cash and valuables, while the bathrooms are not in an appropriate state. Additionally, due to the lack of effective cooling and cold room structures, farmers face an even bigger hurdle of a lack of efficient delivery facilities, with the shortage of ethylene ripening rooms further negatively affecting food distribution.

The Institute of Market Agency of South Africa (IMASA) has been fighting for years to have these facilities upgraded. Small-scale farmers struggle with bureaucratic red tape and monopolistic middlemen, forcing them to accept low prices while consumers pay more. High entry costs and logistical inefficiencies push nutritious food further out of reach for the average consumer.

The Democratic Alliance (DA) believes that food security in Gauteng requires stimulating deregulation and fostering community-driven partnerships, rather than relying on heavy-handed state interventions. By supporting farmer's markets and private community partnerships, a cost-effective and efficient food distribution system can be created. This will benefit both consumers and producers. Private community partnerships can upgrade fresh produce markets, reducing inefficiencies, food wastage, and costs.

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Deregulation and partnerships will lower food costs by providing direct access to affordable produce which has already been shown at the weekly food markets like the Silverton farmers market and the Hazelwood food market, both in Tshwane. These community initiatives empower small-scale farmers, removing red tape and allowing them to enter the market with ease and compete fairly. Simultaneously Urban Agriculture is promoted through these community-driven initiatives which can transform vacant urban spaces into productive food hubs, improving access to fresh, affordable produce.

Through the Agriculture Portfolio Committee in the Gauteng Provincial Legislature (GPL) the DA will be putting pressure on the MEC for Agriculture, Vuyiswa Ramokgopa to work with municipalities to ensure that our fresh produce markets are easily accessible to small-scale farmers, have fair and transparent pricing, are upgraded, and not impeded by red tape.

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A DA-led provincial government will ensure markets have proper infrastructure and operate efficiently so that farmers can access the fresh produce market without any hassles. This will improve food security in the province and provide a sustainable food value chain.