Cape Chamber welcomes new private fund to help SMMES
18 August 2021
In a remarkable alliance between a major United States Bank and the South African Government, JP Morgan and the Department of Trade, Industry and Competition (TIC) have announced a new R340 million fund to assist SA-based small and medium-sized businesses.
The programme will deploy financing support to qualifying firms particularly in manufacturing and the green economy through short, medium, and long-term finance over eight years. Interest rates will vary but are promised to be less than normal commercial bank levels.
In making this joint announcement it was clear that a major motivation for JP Morgan was enhanced BEE status, plus the opportunity to encourage specifically black entrepreneurs.
Some will note that the Minister of the TIC is a committed member of the South African Communist Party, an organization not known locally for supporting the tenets of free markets and private property ownership, but this partnership is nevertheless welcome.