Version '2.0' of Transformation Fund still a disaster waiting to happen, argues SME empowerment group founder

The Department of Trade, Industry and Competition (dtic) has revised its controversial plan for a R100 billion Transformation Fund, News24 reports.

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The new concept paper -not yet released for public circulation- provides better assurances of accountability and added incentive for participation, writes Carol Paton.

It then remains to be seen whether 'Version 2.0' will receive a better general reception than the original concept, but Hilten Kesahve, CEO of SME empowerment organisation Unconventional CA, remains skeptical.

He cautions that while there is a promise of fresh governance, the Fund risks repeating past mistakes by recentralising transformation rather than enabling it at the grassroots.

'In simple terms, I have no confidence (that major concerns have been addressed) - even though there is this new and improved element from a governance perspective, the fundamentals haven't changed', he says.

"It’s still a centralised structure that risks becoming a network of pals hiring pals. This is a disaster waiting to happen."

Kesahve believes that real transformation will only happen if the onus is on corporates to take responsibility as active citizens, not just as compliance players chasing ESD points, as he puts it.

What is missing in this new iteration of the Fund is clear alignment with ESG (Environmental, social, and governance) and the UN Sustainable Development Goals (SDGs), he says.

Without this element or corporate responsibility, it’s hard to see how this model drives sustainability or genuine inclusion, Kesahve concludes.

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