Statement about Black ownership requirement

The premise of The People’s Fund is that as a country if we work together, we correct the ills of the past and get all of us to work together. We believe this wholeheartedly.

The primary mechanism we feel we can do this is to provide means of capital to the usually underserved and forgotten segment of the market. In South Africa, this structural segregation of economic participants is racial. This informs our philosophy on funding 51% black-owned companies. Creating a corner for the inhabitants of this country to be given a chance to participate in the economy.

The country agrees with this approach, as we have funded close to R80million worth of purchase orders, by outlaying almost R50million worth of capital to over 350 businesses, using a vast array of the crowd from all walks of life.

As we end our first week of the COVID19 Lockdown, we grapple with an existential crisis of mankind. While it is very unlikely that mankind will be wiped out by this virus, it will definitely wipe out mountains of wealth created by nations and will decimate the economic structures as we have known them. This effect hurts the downtrodden the most.

We had to ask ourselves how are we participating in being a solution and mitigate the disaster that is COVID19? In our privileged position of being one of the business categories considered essential services, how are we helping the situation along?

While we remain committed to rectifying some of the ills of the past, it has become abundantly clear that unless we have an economy to go back to, it will be all for nothing. This is a time of great tribulation and we need to pull together as a country.

While the very large and bureaucratic companies grapple with media statements and structures to assist, this hurts small businesses the most. But right now, far more importantly, this hurts the essential services they provide to health (private and public), SANDF, Eskom, Rand Water and other such essential services that will be critical in the fight against this virus.

For the duration of the crisis, we have decided to relax our 51% black-owned requirement for companies. Any company providing an essential service will be able to access funding from The People’s Fund.

 

Sincerely


Luyanda Jafta
CEO | The People’s Fund

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