Black-owned business ’left in the cold’ after unrest

Nafcoc's Gauteng spokesperson Refilwe Monageng said many black businesses, which have already been struggling for months to survive the Covid-19 crisis, were left in the cold.

Nafcoc's Gauteng spokesperson Refilwe Monageng said many black businesses, which have already been struggling for months to survive the Covid-19 crisis, were left in the cold.

Published Aug 5, 2021

Share

Cape Town - The National African Federated Chamber of Commerce and Industry (Nafcoc) has called on the government to ramp up its efforts in providing relief to black businesses and small, medium and micro enterprises (SMMEs), impacted by the civil unrest that erupted across parts of the country earlier last month.

The South African Property Owners Association estimated that the week of deadly riots, arson and violent unrest could cost the country about R50 billion in lost output, while 150 000 jobs have been placed at risk, Nafcoc said.

Nafcoc's Gauteng spokesperson Refilwe Monageng said many black businesses, which have already been struggling for months to survive the Covid-19 crisis, were left in the cold.

“The government’s additional economic recovery measures, announced by President Ramaphosa on July 25, 2021, are a useful step forward.

“However, black businesses and SMMEs, in general, need more help.

“We appeal to the government to increase their efforts to provide extensive relief to our workers, employers and communities, as soon as possible. There are many more options available to the government, including further support through comprehensive tax relief, debt amnesty provisions, and even grants,” Monageng said.

Monageng added that many black businesses have been excluded from applying for government or private sector support throughout the pandemic because they do not have the resources to supply the basic paperwork required for the applications.

“We need further engagement between the public and private sectors, to implement urgent interventions to provide short to medium security for more black-owned business ventures. South Africa's prosperity is directly tied to the economic empowerment of the majority of our people,” said Monageng.

Acting spokesperson in the Presidency Tyrone Seale said the government shares Nafcoc’s concern about the challenges facing the economy and black entrepreneurs in particular.

“These challenges have informed the diverse measures that the government has devised to support businesses across the economy.

“The government continues to work with organised business, labour and the community sector under the auspices of the National Economic Development and Labour Council, to address these issues and develop responses that are shaped and owned by the social partners.

“While the government is confronted with difficult choices and constraints on resources, we will maintain our engagement with Nafcoc, on ways to secure greater support for black entrepreneurs,” Seale said.

Partner at Spear Capital Bryan Turner said government support for SMMEs, and the implementation of conducive policies for businesses, must be a priority.

“The country has shown that it’s capable of producing start-ups that can scale and compete internationally. Imagine how many more it could produce, if conditions were made a little easier,” he said.

Cape Times

Related Topics:

Covid-19