SA needs to take a leaf out of South Korea’s book and support SMEs, writes Ivan Fredericks
Despite the Land and Agricultural Development Act of 2002, the Land Bank still behaves more like a commercial bank than a DFISA has various development finance institutions mandated to contribute to economic development. The Industrial Development Corporation , the Development Bank of Southern Africa, the Land Bank, the National Empowerment Fund, and the Small Enterprise Finance Agency were geared to promote economic inclusion but have failed to produce a sizeable number of black entrepreneurs.
Monetary policy reforms that oriented financial services to the market led to the reduction of interest-rate subsidies from the Land Bank. The strategy of the SA Reserve Bank to defend price stability resulted in a rise in interest rates. The Land Bank became tied to the interests of legacy farmers, who had now consolidated into large, commercial farming groups. The Land Bank’s lending practices contributed to structural inequalities between smaller black farmers and larger commercial farmers.
Anecdotal evidence from black entrepreneurs suggests the IDC behaves like commercial banks with similar interests to them, making it difficult for the IDC to fulfil its mandate to empower black entrants into the economy The IDC was also tasked in the amended act to support the BEE agenda. It provides development finance, project development, non-financial forms of business support, capacity building, research and policy inputs.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
LETTER: SA needs New DealEconomic and social situation is like that of the US in the 1930s
Read more »
Graeme Smith confirms talks with Cricket SA but still has some 'real concerns'Graeme Smith is inching closer to putting pen to paper as Cricket South Africa’s new director of cricket but the former captain still has some “real concerns” with the governing body before he can sign on the dotted line.
Read more »
‘I was absolutely shocked,’ Shirley Zinn says on resigning from Cricket SA board‘I was totally horrified to find out that these things happened and I wasn't going to stand by and look the other way,’ the former independent director said
Read more »
Standard Bank summons Cricket SA over bid to ban journalistsSponsor is concerned after five reporters were barred from covering fixtures because CSA was unhappy with their reports
Read more »
ANALYSIS: Sex education raises questions about the role of the state in SAObjections raised about the school syllabus by parents, schools and civil society point to a bigger problem with the state.
Read more »