Govt's planned transformation fund will assist black businesses - Ramaphosa

CAPE TOWN - President Cyril Ramaphosa said that the transformation fund his government plans on establishing would go a long way in assisting black businesses.

Ramaphosa again made reference to the fund, which has come under criticism from parties like the Democratic Alliance (DA).

He said that the fund would receive R100 billion over the next five years to help small business and boost the economy.

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In his State of the Nation Address (SONA) on Thursday night, Ramaphosa said the most "urgent task" was to grow the economy to create jobs.

Trade Industry and Competition Minister Parks Tau was the first to make mention of the the transformation fund, saying it was not merely a funding mechanism, but a "catalyst for change".

President Ramaphosa also made mention of the fund in his SONA speech, which laid out a growth and jobs agenda for the country.

"And we will set up a transformation fund worth R20 billion a year over the next five years to find black-owned and small business enterprises."

Ramaphosa also said they would fast-track the regulations of the Public Procurement Act to ensure businesses owned by women, youth and persons with disabilities received "equitable opportunities" in government contracts.