Aid for small business enterprises: After initially denying that Black Economic Empowerment (BEE) will be used as a criterion, government now admits that BEE conditions will indeed be used

29 April 2020

The FF Plus considers it totally unacceptable that race will be used as a guideline to offer financial aid to smaller business enterprises in this time of crisis after it was initially denied.

There are numerous smaller business enterprises, like sole proprietors, that cannot meet the requirements for Black Economic Empowerment (BEE). These enterprises were born out of entrepreneurship, irrespective of race, and benefit the entire economy and job creation and in many cases, these enterprises are the first step to even greater entrepreneurship.

Many of these businesses are prohibited from trading during the lockdown period and in many cases, this ban may remain in place for a long time to come. These businesses need aid specifically because they will serve as the spark that will help to once again ignite the economy after lockdown.

Numerous of these businesses are facing bankruptcy and ultimate closure and should they disappear from the scene after Covid-19, it would be a severe blow to our chances of speedy economic recovery.

In 2013, the FF Plus was the only party that voted against the more severe economic empowerment legislation in Parliament. And it is the provisions of this very legislation that are now being used to determine how aid is allocated.

Parties who voted for the draconian race-based legislation must now take responsibility for their actions and will have to live with their conscience seeing as numerous sole proprietorships will not be able to survive without aid.

The FF Plus demands that this legislation, and particularly its sectoral determinations, must be suspended at once so that all business enterprises can receive aid, irrespective of race, and that this suspension must remain in place while the economy is rebuilt and after that, it must be abolished.

If the economy does not recover, people of all races will suffer and that suffering will not make any distinctions based on skin colour.

The FF Plus has already made this request to President Cyril Ramaphosa in Parliament and will once again appeal to him to suspend BEE and will consider further action if this request is not granted.

The party is committed to fighting for equality and equal opportunities and will not let this matter go.

Issued by Pieter Groenewald, FF Plus leader, 29 April 2020