Trade Dept sets up R3.9bn to help businesses rebuild
He said the fund would likely grow as they were engaging with big business to support businesses saying there has already been a pledge of R50 million.
JOHANNESBURG - Department of Trade and Industry Minister Ebrahim Patel said on Thursday that they had set up a R3.9 billion package to assist businesses to rebuild following recent looting and destruction.
He said the fund would likely grow as they were engaging with big business to support businesses saying there had already been a pledge of R50 million.
He said data from surveyed businesses indicated that only 60% were covered by insurance for the damage caused.
Patel broke down the financial contributions, saying, “The Department of Trade and Competition and the Department of Small Business Development has reprioritised R1 billion of funding from other programmes, which will be shifted now to this response fund. This has been supplemented by the R1.3 billion National Treasury will make available.”
The rest of the money would be raised by the National Empowerment Fund and the Industrial Development Corporation.
On Wednesday, Treasury announced that it would raise R36 billion for the package through tax collections. The R3.9 billion was an addition to the amount.