The establishment of the R100-billion Transformation Fund marks a significant step towards addressing the historical funding gaps that have hindered the growth of black-owned
businesses in South Africa.
This is according to the Acting Deputy Director General (DDG) of Transformation and Competition at the Department of Trade, Industry and Competition (the dtic), Ms Susan Mangole.
She was part of a delegation led by the Deputy Minister of Trade, Industry and Competition, Mr Zuko Godlimpi, to brief the Portfolio Committee on Trade and Industry, in a virtual meeting on the work the dtic has undertaken so far to set up the fund, following the announcement by President Cyril Ramaphosa on the establishment of the fund in February.
In March, the department published a draft concept document on the Transformation Fund and called for public comments in a period that ended on 28 May 2025. The department further undertook a public engagement process which targeted different stakeholders to elicit their inputs into the document.
During the briefing, Mangole emphasised that the fund does not seek to bring additional tax burdens on businesses or any other requirements beyond mechanisms that already exist in line with the Section 11(2)(b) of the Broad-Based Black Economic Empowerment (B-BBEE) Act 2003.
“The Transformation Fund will be anchored by the B-BBEE policy provisions and therefore the R100 billion over the next five years will be sourced from the Competition Commission’s public interest commitments, Enterprise and Supplier Development (ESD) funds, Equity Equivalent Investments from multinational companies, and other government funding initiatives,” stressed Mangole
In her presentation, Mangole highlighted some of the inputs received during the window of the public participation process and indicated the department is currently reviewing them.
“Some of the comments and inputs received include a call for clarity on how the fund will work with existing ESD funds, particularly those that are well functioning, a clear transformation index on how to measure the impact of the fund and that it must be complemented by compliance by big corporations in terms of market access, technical skills development, infrastructure development and support, and other non-financial support,” said Mangole
She added that a partnership between government and the private sector in administering the fund and an oversight committee consisting of nine members from both sides will be established to provide oversight in the running of the fund.
Enquiries
Bongani Lukhele – Director: Media Relations
Tel: (012) 394 1643
Mobile: 079 5083 457
WhatsApp: 074 2998 512
E-mail: BLukhele@thedtic.gov.za
Issued by: The Department of Trade, Industry and Competition (the dtic)
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