The Department of Trade, Industry and Competition (the dtic) says the new R100-billion Transformation Fund is not a new tax, but rather a way of facilitating existing broad-based black economic empowerment (B-BBEE) commitments.
In a statement, the DTI says the Transformation Fund aims to promote digital inclusion, address fragmentation, foster sectoral growth, enhance market access, and support indusrialisation.
Parks Tau, minister of trade, industry and competition, says: “The Transformation Fund is not about imposing new obligations but about ensuring that existing commitments under the B-BBEE legislation are strategically utilised to create meaningful economic transformation. It embodies our constitutional mandate to achieve equality and empower historically disadvantaged communities.”
The fund’s conceptual framework will be opened for public consultation and stakeholder engagement with a target to mobilise R100-billion by 2029.
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.”