Political instability in GNU could put black SMMEs at risk, warns BBF
The Black Business Federation (BBF) said it was concerned about the policy difference in the Government of National Unity (GNU) following the announcement of a new Cabinet.
The DA and ANC entered into an arrangement in the Government of National Unity. Picture: GCIS
JOHANNESBURG - The Black Business Federation (BBF) said it was concerned about the policy difference in the Government of National Unity (GNU) following the announcement of a new Cabinet.
President Cyril Ramaphosa announced his executive on Sunday, which includes 75 ministers and deputy ministers from different political parties.
While the federation has welcomed the president's announcement, it has warned that differences in the policy stance could push black businesses further into uncertainty.
The Black Business Federation has intensified calls for political parties to abandon their squabbles in the interest of serving the country.
The federation warned that any political instability in the seventh administration could put small- and medium-sized businesses at risk, with the spillover of job losses.
It said the worst-case scenario was reduced access to funding for black-owned businesses as investors and lenders became more risk-averse and a possible increase in inflation, which reduced the purchasing power of businesses.
Black Business Federation secretary-general, Wonder Jaca, said that transformation and removing red tape for companies needed to be top of the agenda.
It especially called for the economic cluster to address existing challenges and collaborate with the private sector in a bid to grow the economy.