Black Business Council urges better access to finance for black businesses

The Black Business Council (BBC) in South Africa is pushing for improved access to finance for black businesses, both small and large. The BBC is engaging with traditional banks and the government to discuss barriers to entry and funding challenges faced by black entrepreneurs. In a recent interview with CNBC Africa, Kganki Matabane, CEO of the Black Business Council, highlighted the importance of empowering small businesses to address the issues of unemployment, poverty, and inequality in the country. Matabane emphasized the need for a platform where black businesses can connect with financial institutions to facilitate funding and job creation. The BBC has been advocating for the establishment of a black-owned bank in South Africa to cater specifically to the needs of black entrepreneurs. Matabane mentioned that a team has been working on the models and modalities for the proposed bank, signaling progress in the initiative. While acknowledging that the process is still ongoing, the BBC is committed to moving from discussions to implementation, urging the government to support the development of the bank. As South Africa anticipates the appointment of a new finance minister, the Black Business Council emphasized the importance of selecting a candidate who prioritizes economic growth, job creation, and the acceleration of transformation. The BBC called for a cabinet that is dedicated to addressing unemployment, poverty, and inequality through practical strategies and effective policy implementation. In addition, the BBC recommended policy changes such as repealing the Preferential Procurement Policy Framework Act (PPPFA) and replacing it with the Public Procurement Act to streamline transformation initiatives. The Black Business Council identified SMME (small, medium, and micro enterprises) development as a key focus area for the incoming government to achieve quick wins in the economy. By supporting and promoting the growth of SMMEs, South Africa can stimulate job creation and economic expansion. The BBC urged the government to prioritize SMME development in the next five years to drive sustainable growth and address the challenges faced by small businesses. In terms of policy recommendations, the Black Business Council has been actively engaging with the government on various initiatives aimed at promoting black business competitiveness and market access. The BBC highlighted the need to address monopolies that hinder market entry for black entrepreneurs and restrict competition. By advocating for open markets and facilitating the entry of new players, the BBC aims to create a more inclusive business environment that empowers black businesses to thrive and contribute to economic growth. The Black Business Council's efforts to improve access to finance, advocate for policy changes, and promote black business development reflect a commitment to advancing economic empowerment and entrepreneurship in South Africa. By collaborating with financial institutions, government stakeholders, and the wider business community, the BBC seeks to create a conducive environment for black businesses to succeed and drive socio-economic transformation.