TRANSFORMATION FUND: DRAFT CONCEPT DOCUMENT OUT FOR COMMENT

TRANSFORMATION FUND: DRAFT CONCEPT DOCUMENT OUT FOR COMMENT

• 19 March 2025
• Broad-based Black Economic Empowerment
• SA Legal Academy

The Department of Trade, Industry & Competition has issued a media statement calling for input by 7 May 2025 on a draft concept document for the proposed ‘transformation fund’. According to the statement, the fund envisaged will be a joint government-private sector initiative intended to:

• ‘aggregate’ enterprise and supplier development commitments under the prevailing 2003 Broad-Based Black Economic Empowerment Act’s good practice codes, thus
• making R100bn available over the next five years to:
  • ‘support’ transformation’, and
  • facilitate sustained, ‘effective’, ‘meaningful’ participation by black-owned enterprises in the industrial, manufacturing and services sectors of South Africa’s formal economy.

This is noting that:

• governance structures to ‘ensure’ accountability, transparency and efficiency will include:
  • ‘a special purpose vehicle’
  • ‘a board with … (the necessary) skills and capacity’, and
  • an oversight committee, and that
• the fund envisaged will place ‘no additional requirements’ on entities designated under the Act and related policy.

Please click the links below for more information:

• draft concept document
• media statement

Published by SA Legal Academy Policy Watch

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