The Association of South African Chambers (ASAC) is against the proposed R100-billion state transformation fund.

ASAC is the umbrella organisation under which the iLembe Chamber of Commerce falls and also includes the largest equivalent chambers in Johannesburg, Cape Town, Durban and other regional centres.

Association chairperson Melanie Veness called on government to promote organised business sustainability rather than the fund which was recently proposed by the Department of Trade, Industry and Competition. The proposed fund would funnel R100-billion of support to black-owned businesses by 2029.

Veness said ASAC embraced “transformation as an economic imperative but supports Business Unity South Africa in opposing the establishment of such a fund.”

“Firstly, because we already have a mechanism in place (BBBEE) so this would amount to a form of double-taxation, and secondly, we are of the strong opinion that it will not yield the desired outcome,” she said.

“We are at the coalface of business, empowering black-owned enterprises and supporting their sustainability as part of our mandate, so we know what interventions are working and which are not. Business doesn’t need an additional tax, we need government to enable us to do what we do best and to create an enabling environment for our members to operate in.”

Veness said it had become increasingly difficult for local companies to compete globally and that the country was struggling to attract the level of investment needed to address unemployment levels.

“Onerous policies and an unconducive environment are what’s causing the South African economy to seriously underperform, so we’d encourage the minister to prioritise interventions that address these challenges. We really can’t afford to make things worse.”

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