Independent Writer at Africanism Magazine
South Africans have a tendency of criticising other people’s initiatives from an arm-chair, and I am one of those. However, those who wish not to be criticised should not broadcast misleading private initiatives that are design to abuse state resources for selfish reasons. They must just do what they have been doing for many years; silently exclude Africans from accessing white capital. When it comes to economic issues, South Africans are not as ignorant as they had been (so I believe), they are starting to see through silly strategies like this. The SA SME Fund is to advance white capital monopoly but disguised as something that South Africans must embrace.
Apparently, Africans must be happy with initiatives like this because they have positive impact on the economy, while in reality the promoters of this initiative are just gambling and burning cash that they swindled from the poor Africans to advance white businesses. The focus of the articles is not on their money, that they earned by exploiting Africans, however on their audacity to propose that government must match their R1,5 bn fund that it is mainly earmarked for minority. The country already has Small Enterprise Finance Agency (“SEFA) and National Empowerment Fund (“NEF”) which have limited capital. The focus of government and black executives should be to recapitalise these institutions rather than condoning exploitation.
The initiative to support SMME is great however it must not be disguised as a social initiative to support the economy while it is clear that the initiative is designed for white empowerment. The primary objective is to ring-fence funding to grow white capital and reinforce economic slavery of Africans. The support of the economy is incidental. The call to Government to match the R1, 5b is unfortunate and unnecessary. If the government supports this initiative, it will be continuing to formally promoting institutional racism. The government funds, if available, should be better used to recapitalise SEFA and NEF, and not wasted to promote white power. If they cared so much, their miraculous interventions must be directed towards expanding existing institutions, instead of creating a start-up. Claims will be made that government institutions like NEF and SEFA are ineffective and corrupt. The reality is that they are similar to white financial institutions, the likes of ABSA, FNB, RMB, Investec, Discovery were built out of corruption, comradeship and cronyism, however because they are white, it is called network.
The target market of the fund is established businesses that are already supported by Banks. South Africa is in desperate need of funding to support start-ups, and not expansion capital. Banks are already doing it, so what is the song all about? Anyone can do expansion capital while start-ups require commitment and a soul. The initiative clearly excludes start-ups because by targeting start-ups, the majority of applicants would have been Africans and it is not their target market.
The distribution of the funds will be done through existing fund managers “because they have experience”. The truth is that the promoters of the fund want to empower their own. The disguise this by claiming that they are looking for experience fund managers. It is known that white is equal to experience and experience is white. Efficiency is white. Scalable businesses they are referring to will be white.
It is noble to think we are not racist, but the reality is that everyone is racist. A white CEO (leadership) will consciously or subconsciously be pro-white businesses. It is normal to look out for your own. The promoters of the fund made their intentions clear by appointing a white old CEO. The allegation that the initiative is led by Jabu Mabuza does not make it pro-African, and the black executive supporting this fund are just tagging along with their masters. The promoters of the fund saw an opportunity to empower their own by leveraging on government funding in the name of SMME, jobs and the economy.
The promoters of this initiative are making the money by servicing and exploiting the poor and they must be treated like heroes when they invest back the money that they swindled from the poor. Even if others may claim that they are not making money by servicing the poor but their clients or the clients of their clients are marking money from servicing the poor.
Government participating in this fund will be an endorsement of continued exploitation of Africans. The presentation of the fund is appealing, the lipsticks are fitting. However, government participation in this fund will be a seal of approval that Africans are mentally colonised. They endorse obvious colonisation strategies.
The initiative is brilliant, however the point is - if private sector wanted to do good and work together with government, why not recapitalised the existing institutions or otherwise do it on your own without calling for government to contribute.