As the dust settles after the 2024 elections, the optimism, locally and abroad, is palpable. Of the five potential scenarios we anticipated, the most stable, pro-business and pro-economic growth outcome has been realised with the recent establishment of the Government of National Unity (GNU). The GNU’s formation signals a renewed commitment to economic reform, stability, and inclusive growth. By fostering a collaborative government, South Africa aims to address systemic inequalities and stimulate economic activity across various sectors. The GNU’s policies are expected to prioritize infrastructure development, investment in technology, and the revitalization of key industries, creating a fertile ground for businesses to thrive.
How can you ensure your business is primed for growth and success in our new political landscape
This shift in the political landscape presents a unique moment for small and medium-sized businesses to maximise on the expected growth trajectory over the next five years, but with some caution.
The ANC has a Minister or Deputy Minister in EVERY portfolio in the expanded cabinet, so it would be unlikely that any non-ANC minister can move away from established ANC policies. It is however very likely that some of the new brooms might make work on the implementation of the policies, thereby creating a better probability of actual results being achieved.
BEE requirements will be unlikely to cease in the near future – and we still believe that implementing and supporting BEE initiatives should not just a regulatory requirement but a moral and economic imperative for South Africa’s sustainable development to contribute to the broader economic and social development of the country.
One of the recent developments are related to the increased focus on Black Ownership in procurement by Government and State-owned Enterprises. A well-structured BEE shareholder will ensure your company can meet these requirements, can achieve real empowerment, BEE points, business benefits and shareholder value to allow your business to step into the growth opportunity that is starting to blossom in our country.
A Broad-based Ownership Scheme spreads benefits more widely than most other BEE approaches and, we believe, is the optimal BEE ownership opportunity. Intombazane is an existing and successful broad-based ownership scheme that is structured to be the best possible BEE Ownership transaction available. It offers a business friendly approach and the assurance that any benefit that may accrue to Intombazane is for the development of young people. Young Black Women to be precise. It offers relevant, legitimate and compliant BEE ownership, without the risk of fronting.
As a well-structured BEE shareholder, Intombazane ensures its investment companies meet all critical considerations such as real empowerment, BEE points, business benefits, costs, risk, shareholder value, sustainability, and rules of an eventual exit with a share purchase model that is designed to provide an optimal value and benefit balance.
To learn more about how you can turn B-BBEE into a strategic asset for your business, visit: www.intombazane.org.za