23/01/2025
PLANS TO EXPROPRIATE 3% OF PRIVATE COMPANY PROFIT FOR NEW R100 BILLION FUND
The South African government plans to establish a R100 billion Transformation Fund to foster economic transformation by supporting black-owned businesses and Small, Medium, and Micro Enterprises (SMMEs).
This initiative, outlined by Minister of Trade, Industry, and Competition Parks Tau in a recent parliamentary Q&A, will be financed through private sector contributions in alignment with Broad-Based Black Economic Empowerment (B-BBEE) regulations and other mechanisms under the Competition Act.
According to Minister Tau, the fund will draw on various streams of private-sector financing. The Enterprise and Supplier Development (ESD) element of the B-BBEE Codes of Good Practice mandates companies to allocate 3% of their annual net profit after tax toward developing black-owned suppliers.
Additionally, multinational corporations operating in South Africa will be required to make cash contributions equivalent to 25% of the value of their local operations if they choose not to comply with ownership provisions under the Equity Equivalent Investment Programme (EEIP).
read more here 👉 https://dearsouthafrica.co.za/news-2/
