By Naledi Ngcobo

 

The billion-Dollar fund, which was unlocked by the banking sector and intended to bolster black-owned businesses, remains largely undistributed.

The FSTC has identified a key challenge in reaching a consensus on the proportion of funds to be managed by black asset management firms versus direct distribution by the banks themselves.

Established seven years ago, the Black Business Growth Fund aimed to inject capital into black-owned businesses across various economic sectors.

However, of the $5.59 billion allocated for this initiative, only $1.34 billion has been effectively deployed.

The FSTC points to constraints within the financial sector's internal structures, which have hindered the reorganisation necessary to ensure that black personnel within these organisations are at the forefront of distributing the funds to the designated beneficiaries.

--SABC--