Deputy President Paul Mashatile has reaffirmed government’s commitment to ensuring the proposed R100 billion Transformation Fund delivers on its promise of inclusive economic growth – while vowing strict safeguards to prevent corruption.
Speaking at a business breakfast in Pretoria, Mashatile acknowledged concerns around the fund, but assured stakeholders that robust mechanisms will be put in place to ensure transparency and accountability.
“We will not achieve an inclusive economy as long as corruption persists, both in the public and private sectors,” he said.
“Corruption hinders the growth of SMEs by increasing costs, reducing profits, and creating uncertainty.”
Bold step
The Transformation Fund, unveiled by Minister of Trade, Industry and Competition Parks Tau earlier this year, proposes an annual R20 billion allocation over five years to support black-owned enterprises and accelerate structural transformation in the economy.
While the initiative has been welcomed by some as a bold step toward addressing historical inequality, critics – including the Democratic Alliance and Freedom Front Plus – have dismissed it as a rebranded version of past empowerment schemes that fell short of expectations.
Mashatile, however, made it clear that the government would not tolerate misuse.
“To promote an inclusive economy, we must commit to addressing corruption by strengthening our institutions, fostering transparency and accountability, and promoting citizen engagement,” he said.
He emphasised that the fund’s integrity would be protected through strong anti-corruption frameworks, improved institutional capacity, and greater public oversight.
“This includes strengthening our criminal justice system and encouraging active public participation and monitoring,” he added.
Minister Tau has previously clarified that participation in the fund would be voluntary and would not interfere with existing enterprise development programmes already succeeding in the private sector.
Instead, the fund is envisioned as a catalytic mechanism to unlock broader participation and investment in the economy by historically excluded groups.
With small and medium-sized enterprises often bearing the brunt of corruption-related inefficiencies, the Deputy President stressed that the fund must be designed to empower these businesses while eliminating red tape and rent-seeking behaviour.
“The transformation we envision is not about replacing one elite with another, but about opening real economic opportunity to the majority of South Africans,” Paul Mashatile concluded.
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