GNU: Black business calls for ‘inclusive economies’

As South Africa waited for last night’s announcement of the seventh administration executive, the Black Business Federation (BBF) said it hoped President Cyril Ramaphosa would appoint ministers of trade, industries and competition and small business that would move SA forward by creating inclusive economies.

“Small businesses are the backbone of thriving economies. The minister responsible for small businesses should create and sustain policies that attract foreign direct investment.

“And [they should] develop programmes that support black businesses in gaining market share that’s in line with the transformation agenda for the South African economy,” it said.

GNU delay a threat?

The BBF said the delay in finalising the government of national unity (GNU) posed a major economic risk for black business.

Peter Baur from the school of economics at the University of Johannesburg said the delays were not an economic risk yet but that the economy was going through a degree of uncertainty.

He said uncertainty was a key driver for investment and business confidence indicators.

“This can be seen in the volatility of the South African rand to the dollar.

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“The delay is prolonging this uncertainty which poses a risk to businesses in South Africa, particularly small ones.”

Baur said the new administration should use strategies that included reducing the cost of access to money used to fund businesses.

“[There should be] policies to protect small businesses through continued infrastructural support and economic development initiatives.

“Additional policies to support community development, allowing us to empower households through this economic uncertainty,” he said.

Strict policy on corruption, tenders

Local businessman Brian Chauke said the delay had created much uncertainty and a drop in customer spending and investor interest.

This had strained his cash flow and made it challenging to maintain operations.

“The president should announce soon so that, as business owners, we know where we stand and are able to predict if we will be affected economically.

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“I have so many suppliers who are affected by who is in charge.

“As someone running a business in a township, I hope the president considers who he allocates in certain positions because that is influential in keeping the rand running smoothly,” he said.

Chauke said he hoped the new government would implement policies that would be strict on corruption and tenders concerning black business.

Prioritise SMMEs

BBF president Malusi Zondi said the body’s immediate expectation from the GNU was to prioritise the needs of small, medium and micro enterprises (SMMEs) “especially those owned by black entrepreneurs, by implementing policies that reduce the cost of doing business, increase access to funding and resources, and create a more conducive environment for growth and innovation.”

He said to restore investor confidence and stabilise the market, the new administration should provide clear and transparent communication.

“It should communicate openly and transparently with investors, business and the public about its plans and strategies to address the delay in the formation of government.”

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