Trade, Industry and Competition Deputy Minister Zuko Godlimpi has reaffirmed the importance of the Transformation Investment Portfolio Fund, while acknowledging its limitations in achieving broad-based empowerment across South Africa’s economy.
By Terence Creamer – Engineering News
Speaking at a recent policy dialogue, Godlimpi described the fund—launched by the dtic, IDC, and NEF—as a “powerful tool to mobilise capital” for black industrialists, but cautioned that it cannot single-handedly overcome the structural barriers faced by emerging black businesses.
“The fund is a key enabler—but it’s not a silver bullet,” he noted, highlighting persistent challenges such as limited market access, exclusion from procurement pipelines, and the need for deeper skills development.
The Transformation Fund, launched in 2022 with R1.5 billion in capital, has already supported over 30 black-owned enterprises across sectors including manufacturing, logistics, and agriculture.
Deputy Minister Godlimpi emphasised the need for bolder and more coordinated reforms, including:
- Enhanced visibility for black-owned suppliers in corporate and SOE procurement
- Streamlined access to government-backed funding for early-stage businesses
- Improved alignment between education, training, and industrial development
He also challenged narratives that black industrialists are “entitled beneficiaries,” stressing the innovation, resilience, and risk they bring to the economy. “We must focus on meaningful transformation that builds long-term, inclusive industrial capacity—not just transactional deals,” he concluded.
