President Cyril Ramaphosa said that the government will be setting up the Transformation Fund that will exclusively assist black businesses.
The president noted during his 2025 State of the Nation Address that the fund will be headed up by the Minister of Trade, Industry and Competition Minister, Parks Tau.
Ramphosa clarified that the fund will provide R20 billion a year to businesses over the next five years.
"We want a nation where no one goes hungry," Ramaphosa stated.
He emphasised that this is why the government will actively work to tackle investment challenges faced by Black individuals.
The president said that empowerment projects like the Transformation Fund will help not only right a historical wrong but will help unleash the economy's potential.
"We must be a country where men and women get equal pay for equal work," Ramaphosa said.
He also noted that growth must create jobs for all, especially young people.
Criticism of the fund
Last month, the Democratic Alliance (DA), a member of the Government of National Unity (GNU) said it strongly condemns the fund as it would undermine Cabinet and the GNU.
When Minister Tau announced the implementation of the fund, the DA criticised his approach as not only irresponsible but deeply problematic,
The DA said that it completely bypasses the necessary Cabinet discussions and approvals that are required for such significant policy decision.
"The DA will not support this madness," DA MP, Toby Chance said.
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