South Africa’s Minister of Trade, Industry and Competition, Parks Tau, has confirmed that the new Transformation Fund will ring-fence Enterprise and Supplier Development (ESD) contributions, ensuring these billions go directly towards strengthening black-owned businesses and inclusive growth.
Too often, ESD spend looks good on paper but fails to create meaningful market access for small suppliers and entrepreneurs. Tau made it clear: ring-fencing will stop these funds from being diluted or misused — forcing real accountability and impact where it’s needed most.
With this move, the Department aims to push corporate South Africa beyond box-ticking B-BBEE compliance and towards genuine economic transformation that builds sustainable businesses, supports local jobs, and grows the SMME ecosystem.
If implemented well, the Transformation Fund could be a game-changer — but action, governance and clear delivery will decide if it works.
