President Cyril Ramaphosa has announced a bold new initiative to drive economic transformation, pledging R20 billion a year over the next five years to support black-owned and small businesses.
Speaking during his annual State of the Nation Address (SONA), he emphasised the urgent need to correct historical economic exclusion and build an inclusive economy.
“For many decades, our economy has been held back by the exclusion of the vast majority of the South African people,” Ramaphosa stated. “Black South Africans were deprived of land, of capital, of skills, of opportunities. Our economy was starved of the potential of its people.”
To address these imbalances, the government is prioritizing economic empowerment for black people, women, and persons with disabilities.
“That is why we need to transform our economy and make it more inclusive,” he said. “We will set up a transformation fund worth R20 billion a year over the next five years to fund black-owned and small business enterprises.”
In addition to this fund, the government will accelerate regulations under the Public Procurement Act to ensure businesses owned by women, youth, and persons with disabilities receive fair access to government contracts. Training for women entrepreneurs will also be expanded to help them compete effectively for tenders.
Ramaphosa highlighted another key initiative, the National Skills Fund Disabilities Programme, which launched in November 2023. In its first phase, this programme aims to equip over 10,000 persons with disabilities with training, stipends, and specialized tools, enabling them to participate in the economy.
“Through these programmes, we are not only righting a grave historical wrong, but we are unleashing the potential of our economy for sustained growth,” he declared.
Creating jobs and building future industries
Ramaphosa also outlined measures to tackle unemployment, particularly among young people. The Presidential Employment Stimulus has already created 2.2 million work and livelihood opportunities, while the Social Employment Fund generated 80,000 jobs last year. Additionally, over 235,000 work opportunities were secured for youth through the National Pathway Management Network, supported by the SAYouth.mobi platform.
Looking ahead, Ramaphosa stressed the importance of positioning South Africa as a leader in future industries, including green manufacturing, renewable energy, electric vehicles, and the digital economy.
“To create jobs, we must leverage our unique strengths and our unrealised potential to build the industries of the future,” he said. “This year, we will finalise a modernised and comprehensive industrial policy that drives economic growth through localisation, diversification, digitisation, and decarbonisation.”
With these initiatives, South Africa aims to drive inclusive growth, create sustainable jobs, and build a more equitable economy.
