South Africa plans new fund to drive inclusive growth
JOHANNESBURG, May 5 (Xinhua) -- The South African government is planning to launch a new fund to boost equitable economic growth as the country faces intensified inequality, said officials on Monday.
The Transformation Fund is a 100-billion-rand (about 5.47 billion U.S. dollars) project to support black-owned businesses and small, medium, and micro enterprises. It is designed to tackle South Africa's current economic challenges, modernize critical infrastructure, and scale up renewable energy solutions, according to the Department of Trade, Industry and Competition.
Speaking at a multi-sector engagement in Pretoria, the administrative capital of South Africa, Minister of Trade, Industry, and Competition Parks Tau said the fund would prioritize high-impact projects that address urgent economic challenges.
Tau said the fund would be a public-private partnership, describing it as a "covenant for the future." The department is still discussing with stakeholders across sectors of the economy, and as discussions continue on the fund, the public has until May 28 to offer their opinions.
"We are going to make sure that the Transformation Fund is at the center of government, specifically the presidency. We will work with the minister of trade, industry and competition as well as the key economic cluster ministers to ensure that we meet the set targets, especially in the procurement of goods and services," Deputy President Paul Mashatile said at the event.
Mashatile said the government's plans to transform the economy and other sectors were enshrined in the constitution. He cited legislation such as the Broad-Based Black Economic Empowerment Act (B-BBEE), which aims to promote black economic empowerment.
"The B-BBEE remains a vital part of our economic landscape. It is a critical tool for addressing past injustices and improving economic participation. However, additional efforts are required to further improve these opportunities," he added.
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