An amount of R10 billion has been targeted as part of a joint government and business partner fund to help grow and support small business in South Africa. To date, 10% (R1bn) has already been raised.
So said the Minister of Trade and Industry, Dr Rob Davies, yesterday (Tuesday), speaking at a networking breakfast held in Johannesburg by the American Chamber of Commerce (AmCHam). He pointed this out in the context of government trying to build stronger partnerships to beat the current economic slump in the country.
“The team, led by the finance minister (Pravin Gordhan), was set up by business and government to find ways to transform the country’s economic growth outlook and to prevent a ratings downgrade by the ratings agencies,” said Davies.
The joint fund, led by the public sector, will provide funding and other forms of support for entrepreneurs. “The focus is to provide venture capital-type funding and monitoring for these target groups - especially black entrepreneurs,” explained Davies, adding that it was “crucial” to build more small businesses in the industrialisation space.
“For every one job created in manufacturing, there are 10 jobs created in related service sectors,” he said.
