Build One South Africa (Bosa) is calling on Minister of Trade, Industry and Competition, Parks Tau and the Minister of Small Business Development, Stella Ndabeni-Abrahams, to appear before Parliament to explain where the R500 million announced by President Cyril Ramaphosa to fund local businesses is coming from.
The announcement by Ramaphosa last week on Friday, follows the spate of food poisoning incidents, stating that since September, there have been a total of 890 reported incidents of food-borne illness across the country.
Ramaphosa said Gauteng and KwaZulu-Natal have been the most affected, while Limpopo, Free State and Mpumalanga also recorded dozens of incidents.
Some of the deaths were linked to hazardous chemical pesticides such as Terbufos and Aldicarb, which are used illegally to control rats in townships and informal settlements, due to poor waste management by local government.
Terbufos is a registered organophosphate chemical for agricultural use, while Aldicarb has been banned for use in the country since 2016.
In response to the scourge of food poisoning cases, Ramaphosa announced measures to address the crisis, including a joint fund of R500 million, which he said would be established by the Departments of Trade, Industry and Competition and Small Business Development.
According to Ramaphosa the fund will support township and rural businesses, including community convenience shops.
“The funding will be for the refurbishment of businesses and non-financial support in terms of technical skills, regulatory compliance and capacity building,” Ramaphosa said.
While Bosa said it welcomed the initiative aimed at empowering township economies, it raised questions about accountability, transparency, and the risk of mismanagement.
“We are today calling for the Minister of Trade, Industry and Competition, (Parks Tau) and the Minister of Small Business Development, (Stella Ndabeni-Abrahams), to appear before Parliament's Standing Committee on Appropriations to explain where this money is coming from, and how it will be spent,” the party’s acting spokesperson Roger Solomons said.
Solomons underscored the importance of clear oversight and warned about the misuse of public funds.
“This cannot be another slush fund for politically connected individuals or a vehicle for corruption,” Solomon’s said.
He said ministers and officials responsible for the fund must provide answers to Parliament to provide a clear and detailed plan for its implementation, oversight, and auditing.
“Money in government doesn't - and cannot - just get appropriated without scrutiny,” Solomon’s added.
Solomons said key questions that the ministers must address include who will manage the fund and will it be administered by an independent body or government departments.
“What are the eligibility criteria and how will beneficiaries be identified to ensure fairness and inclusivity?”
“How will the success of the fund be measured, what metrics will be used to track its impact on township economies, including what measures are in place to prevent corruption, and will there be quarterly reporting? Solomons questioned.
He has called for the establishment of a multi-stakeholder oversight committee, including representatives from civil society, business, and independent auditors, to ensure proper management of the fund.
“In addition, we urge President Cyril Ramaphosa to ensure that this fund does not become yet another unfulfilled promise or, worse, a vehicle for graft.”
Solomons added that they reiterate their call for townships to be declared Special Economic Zones (SEZ).
“Not only will more SEZs assist in the job market, they will provide a unique opportunity to undo one of the major legacies of apartheid that persists today - the spatial economic exclusion of the majority of South Africa's population through the policy of separate and unequal development.”
“This legacy is still visible in townships across the country, where economic opportunities remain limited, and poverty and unemployment are rife.”
Solomons added that township entrepreneurs are the backbone of local economies, creating jobs, providing services, and driving innovation in some of the most under-served communities.
“We remain committed to fighting for empowerment of township entrepreneurs, to ensure that every cent of public money allocated to uplift them is used responsibly and effectively,” Solomons said.
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