Summary: Draft Transformation Fund Concept Document (March 2025)

The Department of Trade, Industry and Competition (the dtic) has released a Draft Transformation Fund Concept Document, outlining a significant initiative aimed at accelerating inclusive economic growth in South Africa. This document proposes the establishment of a substantial fund in partnership with the private sector to address the persistent challenges faced by black entrepreneurs and businesses in accessing finance and support.

Rooted in the South African Constitution and the B-BBEE Act, the Fund seeks to redress historical inequalities and promote meaningful participation of black people in the economy.

Key Highlights of the Transformation Fund:

Rationale and Objectives:

The Fund is a direct response to the slow pace of economic transformation and the significant challenges black entrepreneurs face in accessing finance and support. Its core objectives include:

• Objectives

• Promoting economic transformation for meaningful black participation.
• Improving access to funding for majority black-owned and controlled enterprises.
• Empowering and supporting black enterprises’ participation in value chains.
• Mobilising financial resources from public and private sectors using B-BBEE legislation.

Stakeholder Engagement:

The Draft Concept Document has been published for a 30-day public commentary period by the Minister of Trade, Industry and Competition, Mr Parks Tau. Stakeholder sessions are being conducted to raise awareness.

Members of the public and interested parties are invited to submit their inputs via email to transformationfund@thedtic.gov.za by 7 May 2025.

The establishment of the Transformation Fund is seen as a critical step towards realising the transformation aspirations of the Government of National Unity and empowering black businesses to become active participants in and significant contributors to the South African economy.