Ramaphosa announces R100 billion transformation fund

President Cyril Ramaphosa has announced a new R100bn transformation fund aimed at uplifting millions of black South Africans who have previously been excluded from participating in the country’s economy.

The fund will see R20bn being pumped into funding black-owned small businesses every year for the next five years.

He said the fund would ensure that South Africans live in a country where prosperity and opportunity is experienced by everyone.

“For many decades our economy has been held back by the exclusion of the vast majority of the South African people,” said Ramaphosa.

“Black South Africans were deprived of land, of capital, of skills, of opportunities. Our economy was starved of the potential of its people.”

The announcement of the transformation fund is one of the many moves Ramaphosa has made since his ascendancy to the high office aimed at uplifting black people and correcting injustices of the past.

Since coming into office, especially under the government of national unity, Ramaphosa has signed the Expropriation Act which gives government power to expropriate land and property for public purpose and public interest.

He has also signed the BELA Act as well as the National Health Insurance Act and is expected to soon sign into law the Public Procurement Act.

Delivering his state of the nation address (Sona) Ramaphosa said the injustices of the past make it necessary to introduce this fund to transform the economy to make it more inclusive.

“That is why our focus is on empowering black people, women and people with disabilities because they were deliberately excluded from playing a key role in the economy of their own country,” said Ramaphosa.

“We will set up a transformation fund worth R20bn a year over the next five years to fund black-owned and small business enterprises.”

He said he will ensure that regulations of the Public Procurement Act are fast tracked which would make it possible for businesses owned by women, youth and people with disabilities to receive equitable opportunities in government contracts.  

“We will continue to provide training to women entrepreneurs to enable them to compete for government tenders,” he said.

“In November last year, we launched the National Skills Fund Disabilities Programme.”

The first phase of the transformation fund will empower more than 10,000 people with disabilities through what Ramaphosa says are tailored training programmes, stipends and specialised tools.  

“This part of the work we must undertake as business, government, labour and civil society to enable people with disabilities to play an important part in the economy of our country,” he said.

“Through these programmes, we are not only righting a grave historical wrong. We are unleashing the potential of our economy for sustained growth.”