Massive R100 Billion Fund Raises Eyebrows Over Potential Looting

A bold new initiative aimed at empowering black-owned businesses and promoting economic transformation has left many South Africans questioning its potential for abuse.

The R100 billion Transformation Fund, unveiled by Minister of Trade, Industry and Competition Parks Tau, is designed to foster greater inclusion in the economy by providing financial and non-financial support to Black entrepreneurs, particularly those from disadvantaged backgrounds.

Despite the governments vision of reducing inequality and increasing access to economic opportunities, the funds launch on 19 March 2025 has raised eyebrows. With a heavy reliance on both public and private sector partnerships, the fund aims to channel a staggering R100 billion over five years to assist small, medium and micro enterprises SMMEs, as reported by the Daily Investor .

However, many critics are wary, fearing the fund could become a tool for political cronyism and corruption.

Tau, who has long been a proponent of transforming South Africa's economy, emphasised that the fund would align with the country's Vision 2030 goals as outlined in the National Development Plan. His hope is that it will pave the way for Black South Africans, especially women, youth and people living with disabilities, to play a more significant role in key sectors of the economy. The initiative also emphasises businesses based in rural and township areas, which have traditionally struggled to gain access to capital.