DTI Committee adopts DA’s proposal to fund entrepreneurs

13 May 2015

The Portfolio Committee on Trade and Industry (DTI) today adopted the DA’s proposal to establish a venture capital fund for start-up entrepreneurs within the National Empowerment Fund (NEF). We welcome this as a positive step in the right direction for both job creation and economic inclusion.

I will today write to the Minister of Trade and Industry, Rob Davies, to further insist he pursues the Committee’s recommendation on this matter. Minister Davies cannot in good conscience say he is committed to job creation and inclusive economic growth, while simultaneously rejecting this recommendation.

The DA has proposed the establishment of a national venture capital fund to support all entrepreneurs. That proposal is still firmly in place, and today’s announcement is a significant step in the right direction. 

The Minister must also provide assurances that he will diligently apply his mind to this proposal and provide greater detail on how this will be funded and administered and outline what will happen in the event of noncompliance.

In its report, the Committee recommends  that the DTI Minister should consider, in consultation with the Minister of Finance, pursuing the NEF’s motivation to establish a venture capital fund between the public and private sectors to support entrepreneurs. It is telling that the DTI Committee, which has an ANC majority, has supported our proposal in this regard. 

The DA has persistently called for additional funding to be made available for entrepreneurs with innovative ideas who seek funding in order to enter the economy. This is because job creation and economic inclusion depend on new small start-up businesses. According to the NDP, start-up small businesses and entrepreneurs are to create 90% of the 11 million jobs by 2030. 

The DA maintains that instead of functioning as a quick pit-stop for the well-connected few, the NEF should be focusing on supporting entrepreneurs with fresh and innovative ideas. A venture capital fund within the NEF is a step in the right direction, and must be established.

Statement issued by Dean Macpherson MP, DA Shadow Deputy Minister for Trade and Industry, May 13 2015