The DA has called on trade, industry & competition minister Parks Tau to abandon his ill-considered plan for a transformation fund.
In its submission on the concept document for the fund released by Tau’s department, the DA says the proposed fund is a continuation of government’s failed broad-based black economic empowerment (BBBEE) policies, which have not encouraged economic growth and job creation.
The DA’s position adds to opposition expressed by business and the think-tank Centre for Development & Enterprise.
Tau hopes the fund will raise R20bn a year over five years from the private sector and government.
It is envisaged that the private sector will channel funds intended to meet its enterprise and supplier development commitments under the BBBEE codes of good practice into the fund.
In its submission, the DA says government’s BBBEE policies have failed, among other things, to address barriers to foreign investment. This and other “heavy-handed” government policies had simply served to enrich the elite.
“The growing line of unemployed South Africans and 15 years of tepid economic growth will not be reversed by doubling down on these failed policies,” said DA spokesperson on trade, industry & competition Toby Chance in a statement on the DA’s submission.
The DA said the fund did not align with existing ESD programmes run by the private sector.
“The most effective tool for empowering South Africans is a growing economy that delivers jobs. Without growth there can be no transformation.
“Transformation, as practised by the ANC, benefits a select, connected few, which the transformation fund will worsen,” Chance said.
He added that the DA believes South Africans should be given the opportunity to achieve their fullest potential through better education and skills development, reduced crime and corruption, upholding the rule of law, access to work and an enterprising market economy that attracts investment.
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