Minister Parks Tau defends BBBEE as vital for empowerment

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Trade and Industry Minister Parks Tau has defended Broad-Based Black Economic Empowerment (BBBEE) as still relevant and central to the empowerment of the previously disadvantaged.

He was speaking to the media on the sidelines of the two-day Cabinet Lekgotla underway at the Sefako Makgatho Presidential Guest House in Pretoria.

BBBEE has been lamented as a failed project that only managed to empower a few politically connected South Africans at the expense of the majority.

But Tau says there are lessons that were learnt from this empowerment programme.

“The question is what do we do going forward? Of course, we need to look at the next wave of BBBEE if you like, where there are lessons to be learnt. We take those lessons into account and where there are greater opportunities to be introduced we need to be able to introduce those. We have placed firmly on the agenda of the programme that would be driven by this administration and that’s why we always say we are focussing on industrialisation, but we are equally focussing on transformation.”

Funding system for SMMs

Meanwhile, Small Business Development Minister Stella Ndabeni-Abrahams says there will be a new funding system for small businesses that also includes the private sector.

The Minister presented R2.4 billion budget on Friday.

Ndabeni-Abrahams says there is a new design for such funding.

“In order to access an early-stage investment, we will be tabling this policy in this quarter. The policy will be a game changer as it establishes the funds of funds which we are currently designing. The fund will derisk and leverage from the private sector and institutional support amongst other things. We will also prioritse a startup policy and legislation as required and this will be done will relevant departments.”

The lekgotla has been convened to discuss the government’s priorities and programmes of action for the seventh administration.

Political Analyst Dr Levy Ndou says this is a perfect opportunity for political parties to express their views on what they consider to be the challenges facing South Africans.

The outcomes of the Cabinet Lekgotla will be announced by President Cyril Ramaphosa during the official opening of Parliament on Thursday.

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