Guidance Note 100
Rules - Black Business Growth Funding: Ownership
The provision of risk capital to support black business was negotiated as part of the Financial Sector Code (the “FSC”), as an alternative to section 126.96.36.199 of the previous FSC. The 2017 amended FSC recognises that the financial sector is uniquely positioned to create sustainable wealth across a broad base by leveraging the allocation of resources from savers to those needing capital for growth. The FSC allows that this can be achieved through equity equivalent programmes as contemplated in FS100, Statement 103. These equity equivalent contributions include, but are not limited to, NDP aligned initiatives, growth of black business, enterprise development, empowerment financing and access to financial services. This guidance note sets out the rules governing the provision of Black Business Growth Funding (BBGF) as allowed for in the Ownership element of the FSC.
The provisions of section 188.8.131.52 of Statement 100 of the FSC are intended to unlock funding for black entrepreneurs, black industrialists, black asset managers, black financial brokers and other black people in business in the financial services and other key sectors of our economy. The aim is to support the transformation of the economy in general and the financial services sector in particular by providing financial and non-financial support to black owned and black women owned enterprises in line with the objectives of Broad-Based Black Economic Empowerment (B-BBEE).
The overall objective that the FSC is seeking to support is new and existing black-owned companies that create jobs within the economy.
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