Deputy President Paul Mashatile has insisted that BBBEE policies are here to stay despite cabinet colleagues frothing at the mouth, calling for their abolishment.
“We are clear in our approach in terms of supporting young people who want to own the means of production, and this fund will realise that reality,” he said.
The DA recently announced that it was seeking for the Public Procurement Amendment Act of 2024 to be amended to repeal all race-based preferential procurement provisions and replace them with an empowerment system that targets poverty as the proxy for disadvantage instead of race.
Mashatile said the DA’s proposals would not work and that the country could not afford to do away with crucial transformative legislation to rectify previous imbalances.
“We can’t drop transformative legislation. If there are challenges, we must fix them. BBBEE is a very important transformative legislation to empower previously disadvantaged people and it will be kept. We have an intention to reinforce this legislation, refine it and work through its shortcomings,” he said.
He was speaking at the NYDA’s youth investment indaba, where he gave a keynote addressing pledging support for youth development initiatives, particularly the newly launched national youth fund.
“Economic development requires young people, especially those uneducated, in education or in training, to explore entrepreneurship as a means of self-reliance and employment,” he said.
Economic development requires young people, especially those uneducated, in education or in training, to explore entrepreneurship as a means of self-reliance and employment.
He said this is in line with the national development plan and Vision 2030, which is set to prioritise entrepreneurship and small enterprises as essential factors in job creation and economic development.
“We must therefore work together to alter the mindset of young individuals by highlighting the options available for those who choose to pursue entrepreneurship. Government provides a variety of programmes to assist young entrepreneurs, from financial assistance, business development services and skills training.”
He cited the youth challenge fund, NYDA’s grant programme and R20bn yearly transformation fund, which he said “must not be far from the NYDA”.
However, he conceded that the red tape preventing the youth from accessing opportunities needed to be addressed.
“We want to make it easier to streamline interventions for young people to access funding. We are dealing with all the regulatory burdens to ensure that there is ease of access to utilising these resources. Young people have complained before about access, and we are indeed ensuring that their ideas are funded.”
The office of the deputy executive chair announced an ambitious target of R2.5bn to raise in investment over the next three years, which it intends to disburse to deserving young people.
The next target is to create 20,000 direct jobs through this fund, as well as 100 000 indirect jobs — a feat which the agency will work towards.
Executive deputy chairperson Bonga Makhanya thanked Mashatile for supporting youth development.
“Today, we begin our campaign to attract both local and international investment into South Africa, but particularly for the youth to enable them to play a key role in the strategic sectors of the economy.
“We want to see the economic fortunes of young people change through your direct support and investment, as well as the ministry.”
Makhanya said this formed part of the new NYDA board’s strategy in elevating the type of support and systems on offer for the youth through the institution.
“It is important to note that the national youth fund will allow the agency to reach new heights in terms of support, allowing young people to be at the forefront of mining, renewable energy, construction, industries and manufacturing.”
Makhanya said young people are tired of being sidelined in their own economy and want to be at the centre of its development.
“We are clear in our approach in terms of supporting young people who want to own the means of production, and this fund will realise that reality. We’ve got full confidence that with the right political support, we can achieve and realise a vibrant and growing economy that benefits young people.”
TimesLIVE
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