NEF grants BBC R3 million to strengthen black industrialisation
6 Aug 2012The National Empowerment Fund (NEF), the agency of the dti mandated to grow black economic empowerment in South Africa, has signed an agreement with the Black Business Council (BBC), a coalition of black business associations, which will see the BBC receive grant funding of R3 million from the development financier.
"The NEF and BBC are fraternal partners because they seek to bring about the growth and transformation of the South African economy, ensuring that black people are located meaningfully at the strategic and operational centre of the economy. The capital amount of R3 million will be made available to the BBC in the form of a grant. This will support consolidation of the BBC's technical capacity, as well as its national campaigns and advocacy work," says NEF Chief Executive, Ms Philisiwe Buthelezi.
She says research shows that black people, "who comprise over 90% of the population, own about 3% of the South African economy in terms of market capitalisation on the JSE. What this means is that B-BBEE is not an option, and remains a critical obligation and an imperative which requires the broadest range of partnerships in order to restore the economic citizenship of black people, commensurate with national demographics".
Says BBC President, Mr Ndaba Ntsele: "The role of the BBC is to promote and facilitate the effective participation of black entrepreneurs across all levels of the economy. This grant funding by the NEF will enable the BBC to establish foundational structures and to build capacity so that we may optimise our effectiveness in policy-formulation, and thereby increase our ability to roll out critical national campaigns".
Ms Buthelezi says the NEF’s partnership with BBC will help "grow black industrialists across many sectors of the economy, and to tackle our country’s huge industrial backlog by pursuing opportunities in the economic value chain in critical infrastructure and industries, through existing and new enterprises. These sectors include Renewable Energy, Tourism, Mining, Minerals Beneficiation, Agri-processing, Business Process Outsourcing and Infrastructural Projects".Mr Xolani Qubeka, Chief Executive of the BBC, comments: "the BBC is very pleased and humbled to partner with the NEF in the drive to accelerate enterprise development and scale up SMMEs into the mainstream economy and this collaboration will add impetus to the BBC’s recently established Black Industrialist Development Forum that would also encompass the Department of Trade and Industry".
In accordance with the agreement, the two organisations will work together to:
- Explore the development of an enterprise development fund in terms of which members of the BBC or entities within its network will contribute to an enterprise development fund which will be managed by the NEF.
- BBC will facilitate the referral of transactions which meet the NEF’s funding criteria and which are commercially viable, on behalf of its members.
- Form strong partnerships with other industry players with a view to enabling the creation of skills development programmes and other support measures.
- Leverage on their relationships and structures in order to popularise their joint initiatives and create opportunities for BEE, socio economic development and enterprise development.
"Since operational inception in 2004 the NEF has approved over R3,7 billion for black-empowered enterprises, and during the same period has supported in excess of 29 000 decent jobs. Along with other financiers, the NEF has developed industrial-size projects valued at approximately R30 billion, with a job-creation potential of between 150 000 and 200 000 decent jobs over the next 3 years. These milestones make the NEF an ideal partner with the BBC, who are a natural repository of the NEF's target market in respect of our mandate to provide financial and non-financial support to black-empowered enterprises," adds Ms Buthelezi. Moemise Motsepe, Manager: Marketing & Communications
Cell:083 533 4114
Tel: 011 305 8127
Mr Xolani Qubeka, Chief Executive Officer
Cell: 083 211 1600
Issued by: Department of Trade and Industry
6 Aug 2012
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