OPINION | R100bn fund a beacon of hope to black business

The National African Federated Chamber of Commerce and Industry (Nafcoc) is set to celebrate its 60th anniversary on April 2-4 in Durban, marking a significant milestone in the ongoing struggle for BEE in SA.

This commemoration is not just a celebration of Nafcoc’s achievements, but also a stark reminder of the long and arduous journey black businesses have faced in a country still grappling with the legacy of apartheid and systemic economic exclusion.

While Nafcoc reflects on its six decades as Africa’s largest black business leadership body, it stands at a precipice. Despite over 30 years of democratic governance, black businesses continue to be excluded from key economic sectors, denied opportunities and are often pushed to the periphery of SA’s economic landscape.

Furthermore, the majority of South Africans still face poverty and inequality as daily realities, which is a constant reminder that the promises of liberation remain unfulfilled for many.

This anniversary prompts us to look back on a long, difficult journey – one that mirrors the resilience of African people throughout history.

From surviving the horrors of slavery and colonialism to resisting economic oppression under apartheid, the spirit of survival and triumph against all odds is deeply embedded in Nafcoc’s fight for black business empowerment. Despite countless obstacles, black entrepreneurs have continued to push forward, but the challenges they face remain daunting, even after three decades of democracy.

The R100bn transformation fund announced by minister Parks Tau of the department of trade, Industry & competition, represents a new hope for black businesses. It offers an opportunity to break the cycle of exclusion and economic disempowerment, providing the financial and non-financial support necessary for these businesses to fully participate in and benefit from SA’s economic growth. This fund offers a pathway to a more equitable future.

The fund’s focus on key sectors such as agriculture, ICT, tourism and manufacturing will be instrumental in driving sustainable growth. These industries have the potential to create jobs, generate wealth and foster economic transformation – especially in rural and township areas, where many black entrepreneurs are located. By targeting these growth sectors, the fund aims to ensure that black businesses are not just participants in the economy but also key drivers of its prosperity.

Access to markets has long been a challenge for black entrepreneurs, and the transformation fund addresses this critical issue by offering technical assistance, pre- and post-investment support and access to broader market opportunities, both locally and internationally. For many years, black businesses have been confined to limited and often inaccessible markets, but this fund promises to level the playing field.

The transformation fund’s promise of market access can be likened to a long-awaited opportunity for black businesses to finally claim their rightful place in SA’s economic landscape. By providing support to help businesses scale and reach new markets, the fund aims to ensure that these businesses can grow, create jobs and contribute to the national economy.

To maximise the potential of the transformation fund, it is essential to minimise bureaucracy and streamline the process. The fund should focus on providing direct support – grants, loans and investments – without the burdens of excessive administrative overhead. A simplified process will ensure that black businesses can access the resources they need quickly and efficiently.

The road ahead will undoubtedly be challenging, but just as African people have fought and triumphed over centuries of oppression, so too can black businesses rise to overcome the challenges they face. The R100bn transformation fund is an essential tool in this ongoing struggle for economic empowerment.

• Mosena is the president of Nafcoc