Latest news with #TransformationFund
The Citizen
2 days ago
- Business
- The Citizen
Concerns over Mantashe's changes to draft mineral resources bill
Mantashe's changes to mining legislation have provoked backlash for favouring the industry over public interest. Minerals and Petroleum Resources Minister Gwede Mantashe was lashed for omitting a requirement for Black Economic Empowerment (B-BBEE) participation in applications for prospecting rights. Mantashe recently gazetted two corrections to the Draft Mineral Resources Development Bill and also nullified a provision for ministerial approval for change of control in listed companies that own mining rights. Mining expert David van Wyk asked why the minister backed down. Environmental concerns 'The prospecting companies make huge profits after prospecting reports are out. They sell the prospecting reports to the highest bidder. 'We have a serious problem with the change of control in listed companies. It is what ultimately allows mining companies to walk away from their environmental responsibilities and their responsibility to close and rehabilitate mines,' said Van Wyk. 'This is why we have more than 6 000 abandoned mines. When control of companies changes and the minister, as the custodian of the minerals which, according to the Act, belongs to the public, is not informed of these changes, he is unable to assign responsibility to the owners as he will not know who they are.' ALSO READ: 'Is it greed or jealousy?': Ramaphosa fires back at critics of BEE, Transformation Fund Call for state-led mining and revenue transparency The solution to the problems of environmental and social responsibility, as well as mine closure and rehabilitation, was to establish public ownership not just of the minerals in the ground, but also of the mining process and the extracted minerals, with the state as the custodian and the revenue accruing in a sovereign fund, Van Wyk said. South Africa does have a stateowned mining company and a sovereign fund, but the share of that company in the overall mining sector is minimal. There was no account of how much money has accrued in the sovereign fund since its inception, Van Wyk said. Christopher Rutledge, director at the Mining Affected Communities in Action, said the organisation was concerned. 'Pressure of elite interests' 'Following a mere signal of dissatisfaction from the mining sector, Mantashe swiftly amended the draft of the Bill, specifically the removal of the requirement for B-BBEE participation in prospecting rights and the omission of provisions for ministerial oversight of changes in control of listed companies holding rights. 'As we have previously warned, the main purpose of the Amendment Bill represents a further retreat from the constitutional mandate of transformation, accountability and justice for mining-affected communities. 'Rather than correcting the draft Bill, the minister has capitulated even further to the pressure of elite interests, in particular the Minerals Council South Africa, confirming the extent to which the state has aligned itself with industry over people.' Rutledge said the removal of BEE from the prospecting regime was not a technical correction, but a political decision to sell-out transformation. ALSO READ: Starlink proposal: Mashatile says Cabinet holds final say on policy changes Prospecting was the gateway to mining and excluding it from transformation requirements ensures the ownership and control of mineral resources remains concentrated in the hands of historical beneficiaries of apartheid-era privilege, he said. 'This opens the door to unchecked mergers, takeovers and asset stripping with no regard for affected communities, workers, or environmental responsibilities. We reject the illusion that deregulation is a form of reform,' Rutledge said. Industry engagements Union federation Cosatu spokesperson Mathews Parks said it was critical that legislation is in sync with B-BBEE to avoid contradictions. 'Cosatu will engage with the minister to get a better understanding of the objectives of the amendments.' Minerals Council South Africa Allan Seccombe said the organisation would continue to review the Bill and submit its perspectives by 13 August. 'The Bill in its current form does not encourage or sustain the growth and investment that the mining industry needs.' NOW READ: Cosatu says debate on B-BBEE is needed for beneciaries' benefit
Mail & Guardian
3 days ago
- Business
- Mail & Guardian
Transformation Fund draft document lacks clear, outcome-driven goals, BLSA says
Business Leadership South Africa has criticised the recently launched Transformation Fund as being flawed because it was structured around input-based targets instead of clear, outcome-driven goals..(John McCann/M&G) Business Leadership South Africa (BLSA) has criticised the recently launched Transformation Fund as being flawed because it was structured around input-based targets instead of clear, outcome-driven goals. It said effective efforts should be anchored in measurable objectives that justified the financial commitment required. According to a In 'The fund should use an outcome-based approach by specifying the expected transformation impact in tangible terms, such as the number of businesses it aims to grow, employment targets, or improvements in SME (small and medium enterprises) survival rates,' it said. 'For example, a goal of supporting 5 000 black-owned businesses with a 30% annual growth rate over five years would provide a more practical framework for assessing effectiveness.' Trade and Industry Minister Parks Tau published the fund's concept document — which envisages raising R20 billion annually for black enterprise development — in March, with a 28 May deadline for comments. Scrutiny of the draft comes amid tension over the government's Communications and Digital Technologies Minister Solly Malatsi, a DA cabinet member, recently President Cyril Ramaphosa has BLSA acknowledged the importance of redressing the structural economic imbalances created by apartheid, and commended the government for establishing the Transformation Fund, but bemoaned the lack of analysis about why previous state-led initiatives such as the National Empowerment Fund and the Small Business Fund had underperformed. 'The paper does not provide a comprehensive overview of these existing funding mechanisms, nor does it justify why a new R100 billion structure is necessary instead of enhancing existing models,' it said in its submission. It also expressed concern about institutional inflation, where new entities are created for the same purpose instead of supporting ongoing programmes, adding that access to funding alone would not resolve the systemic challenges and insufficient mentorship capacity had hampered black empowerment initiatives. 'Without targeted investment in mentorship infrastructure even significant financial allocations may fail to yield desired development outcomes,' it said. Labour union Solidarity and the Free Market Foundation estimate that black empowerment laws have incurred R145 billion to R290 billion in compliance costs since their inception, equivalent to between 2% and 4% of GDP. A report by the two organisations on the cost of broad-based black economic empowerment says the programme has imposed a substantial economic burden on high-intensity sectors such as mining and finance, attributing low employment numbers to racially motivated policies. 'While B-BBEE may have contributed to an increase in black ownership and supported some skills and SME development, those gains are overshadowed by elite capture, limited grassroots impact and persistent inequality,' the report said. BLSA said transformation efforts would improve with more private sector participation in the fund's financial disbursement and oversight. It argued that transformation is already happening in companies' enterprise and supplier development programmes, which have proved to be commercially viable in integrating small businesses. A joint fund management team between government and the private sector would allow businesses to share and 'codify lessons and best practices for the fund's design', the organisation added. 'We recommend that the Transformation Fund be designed with sufficient flexibility to align with existing industry master plans and accommodate the requirements of the fast-growing priority sectors,' it submitted.
Wales Online
11-06-2025
- Business
- Wales Online
Everything Rachel Reeves promised in Spending Review, including new asylum rules
Everything Rachel Reeves promised in Spending Review, including new asylum rules The Chancellor has set out how money will be spent on everything from energy and border security to education, housing and the NHS Chancellor of the Exchequer Rachel Reeves in the House of Commons Rachel Reeves has set out her spending plans for the coming years, with big increases for the NHS, defence and schools. Arguing that the Government is 'renewing Britain', she said 'too many people in too many parts of the country are yet to feel it'. The Chancellor also announced more money for border security, and said the Government would end the housing of asylum seekers in hotels within the lifetime of this Parliament - saving £1billion a year. The Chancellor said: 'To support the integrity of our borders I can announce that funding of up to £280 million more per year by the end of the spending review for our new Border Security Command. Alongside that, we are tackling the asylum backlog. The party opposite left behind a broken system: billions of pounds of taxpayers' money spent on housing asylum seekers in hotels, leaving people in limbo and shunting the cost of failure onto local communities. We won't let that stand. 'So I can confirm today that, led by the work of … the Home Secretary, we will be ending the costly use of hotels to house asylum seekers in this Parliament. Funding that I have provided today, including from the Transformation Fund, will cut the asylum backlog, hear more appeal cases, and return people who have no right to be here, saving the taxpayer £1 billion per year.' Government departments Total departmental budgets will grow by 2.3% per year in real terms, the Chancellor has announced as she set out her spending review. Reeves has said austerity under the coalition government was a 'destructive choice' for society. T he Chancellor said: 'In this spending review, total departmental budgets will grow by 2.3%-a-year in real terms. Compare that to the Conservative choice for austerity. In contrast to our increase of 2.3%, they cut spending by 2.9% per year in 2010. 'So let's be clear, austerity was a destructive choice for the fabric of our society. And it was a destructive choice for our economy too, choking off investment and demand, creating a lost decade for growth, wages and living standards.' Article continues below She added: 'My choices are different. My choices are Labour choices. The choices in this spending review that are possible only because of my commitment to economic stability and the decisions that this Government has made. The Conservatives' fiscal rules guaranteed neither stability, nor investment. And that is why I changed them. My fiscal rules are non-negotiable and they are the foundation of stability and of investment.' She said: 'This Government's task – my task – and the purpose of this spending review is to change that, to ensure that renewal is felt in people's everyday lives, their jobs, their communities.' Increase for NHS and schools Among the main announcements are a £30 billion increase in NHS funding, a rise of around 2.8% in real terms, along with an extra £4.5 billion for schools and a rise in defence spending to 2.5% of GDP. The Chancellor has already insisted that her fiscal rules remain in place, along with Labour's manifesto commitment not to increase income tax, national insurance or VAT. She said: 'I have made my choices. In place of chaos, I choose stability. In place of decline, I choose investment. In place of retreat, I choose national renewal. 'These are my choices. These are this Government's choices. These are the British people's choices.' Other announcements include £39 billion for social and affordable housing over the next decade as the Government aims to meet its target of building 1.5 million new homes by the next election. The Treasury said this would see annual investment in affordable housing rise to £4 billion by 2029/30, almost double the average of £2.3 billion between 2021 and 2026. The Chancellor has also already announced some £15.6 billion of spending on public transport in England's city regions, and £16.7 billion for nuclear power projects, the bulk of which will fund the new Sizewell C plant in Suffolk. There is also an extension of the £3 bus fare cap until March 2027 and an extra £445 million for upgrading Welsh railways. The Government has also promised £750 million for a new supercomputer – the UK's most powerful – in Edinburgh. Defence spending increase Defence spending will rise to 2.6% by April 2027, Reeves confirmed, as she said Britain will become a 'defence industrial superpower'. The Chancellor quoted Sir Keir Starmer who said the global security situation meant a 'new era for defence and security' was needed. Increased spending would lead to jobs across the UK, she added. She said: 'A new era in the threats we face demands a new era for defence and security. That's why we took the decision to prioritise our defence spending by reducing Overseas Development Aid so that defence spending will now rise to 2.6% of GDP by April 2027 including the contribution of our intelligence agencies. 'That uplift provides funding for the Defence Secretary, with a £11bn increase in defence spending and a £600m uplift for our security and intelligence agencies. That investment will deliver not only security, but also renewal in Aldermaston and Lincoln; Portsmouth and Filton; On the Clyde and in Rosyth. Investment in Scotland. Jobs in Scotland. Defence for the United Kingdom, opposed by the Scottish National Party delivered by Labour.' Ms Reeves said £4.5 billion would be invested in munitions in Glasgow, Glascoed, Stevenage and Radway Green. £6 billion will be spent on upgrading nuclear submarine production in Barrow, Debry and Sheffield. She added: 'We will make Britain a defence industrial superpower. With the jobs, the skills and the pride that comes with that.' Money for AI and Port Talbot Reeves has also announced £2 billion for an artificial intelligence (AI) action plan. She told the Commons: 'Because home-grown AI has the potential to solve diverse and daunting challenges, as well as the opportunity for good jobs and investment in Britain, I am announcing £2 billion to back this Government's AI Action Plan, overseen by the Secretary of State for Science and Technology (Peter Kyle).' She added: 'To champion those small businesses seeking access to finance as they look to grow I am increasing the financial firepower of the British Business Bank, a two-thirds increase in its investments. Increasing its overall financial capacity to £25.6 billion, to help pioneering businesses start up, and scale up, backing Britain's entrepreneurs and wealth creators.' Earlier in her speech, the Chancellor also confirmed a £500 million grant to Tata Steel for its Port Talbot site. Money for transport The Government will set out plans 'to take forward our ambitions for Northern Powerhouse Rail' in the coming weeks, the Chancellor has announced alongside an additional £3.5 billion to upgrade the Transpenine route. The Chancellor has also already announced some £15.6 billion of spending on public transport in England's city regions. Reeves announced a series of investment in the UK's railways, including an additional £3.5 billion for the TransPennine route upgrade. In her speech, she told the Commons: 'I can announce a further £3.5 billion of investment for that route (TransPennine). But my ambition and the ambition of people across the north is greater still and so in the coming weeks I will set out this Government's plans to take forward our ambitions on Northern Powerhouse Rail. 'I have also heard the representations of … members for Milton Keynes North, Milton Keynes Central, and Buckingham & Bletchley. And I can tell the House today, to connect Oxford and Cambridge, and to back Milton Keynes' leading tech sector, I am providing a further £2.5 billion for the continued delivery of East-West rail.' Money for nuclear energy Britain's spending on small modular nuclear reactors will ensure the UK is at the 'forefront of a global race for new nuclear technologies', Rachel Reeves said. She said the preferred partner for the £2.5 billion project is Rolls-Royce. The same amount will be spent on nuclear fusion. 'This investment is just one step towards our ambition for a full fleet of small modular reactors as well as providing a route for private sector-led advanced modular reactor projects to be deployed in the UK,' the Chancellor told MPs. She added it would 'strengthen Britain's position at the forefront of a global race for new nuclear technologies'. The Chancellor said the Government would also support the Acorn project for carbon capture in Scotland. She said: 'These are investments to make sure the towns and cities which powered our last industrial revolution will play their part in our next industrial revolution, to reduce our reliance on overseas oil and gas and protect working families from price shocks. 'A new generation of energy industries – for a renewed Britain. That is my choice. That is Labour's choice. And that is the choice of the British people.' Money for parks and libraries The Government has announced millions to go to local authorities to improve community facilities such as parks, swimming pools and libraries. The money will go to hundreds of communities, with a focus on those in deprived areas. Money for prisons and police There will £14billion to provide more than 14,000 new prison places. There will also be an increase in police spending of more than £2billion to be used to provide more police and PCSOs. Police spending power will rise by 2.3% a year in real terms over the review period, providing more than £2 billion for police forces, the Chancellor has announced. Money for devolved nations Rachel Reeves announced £52 billion for Scotland, £20 billion for Northern Ireland, and £23 billion for Wales, as she pledged the 'largest settlements in real terms since devolution was introduced'. The Chancellor also announced £118 million will be spent on the safety of coal tips in Wales. She told the Commons: 'This spending review provides the largest settlements in real terms since devolution was introduced, with £52 billion for Scotland, £20 billion for Northern Ireland, by the end of the spending review period, and £23 billion for Wales. 'And having heard representations from many Welsh Labour colleagues and because I know the obligation we owe to our industrial communities, I am providing a multi-year settlement of £118 million to keep coal tips safe in Wales.' She added there would be 'additional funding to support up to 350 communities, especially those in the most deprived areas'. Money for training Extra money will be spent on training and apprenticeships to stop people being 'turned away at the door'. Rachel Reeves said the £1.2 billion funding increase was needed to help people 'thrive in the industries of the future'. She listed careers including scientists, engineers, designers as well as builders, welders and electricians. She said: 'I know the ambition, the drive, the potential of our young people. And it cannot be right that too often those ambitions and that potential are stifled when young people who want training find courses oversubscribed turned away at the door forcing growing businesses, eager to recruit that talent, to look elsewhere. Potential wasted and enterprise frustrated.' Money for education The Chancellor announced £370million for school-based nurseries and £550million for 'transformation funding' to keep children at home, rather than going into care. The chancellor said she is announcing £4.5billion for education funding. She announced £2.3billion per year to upgrade schools and billions more to replace crumbling school buildings. Rachel Reeves has said £370 million will be spent on school-based nurseries, in addition to £555 million to 'break the dangerous cycle of late intervention and low-quality care'. The Chancellor told the Commons: 'I can also announce £370 million for school-based nurseries, to put us firmly on track to meet our Plan for Change commitment – for a record number of children being school-ready. 'And for children's social care, to break the dangerous cycle of late intervention and low-quality care, I am providing £555 million of transformation funding over the spending review period, so that children do not go needlessly into care when they could stay at home. And, for children where state intervention is necessary, better care and better outcomes. Article continues below 'And last week, I was pleased to announce, with … the Culture Secretary (Lisa Nandy) that more than £130 million from the Dormant Assets scheme with the financial services sector will be allocated to fund facilities for our young people, to give every child the chance to take part in music, sport and drama, to fund libraries in schools, so that the confidence and opportunities that those resources open up, are no longer the preserve of a privileged few.' Money for NHS The Government is increasing real-terms day to day spending in the NHS by 3% per year for every year of the review period, Chancellor Rachel Reeves has announced, providing an extra '£29 billion per year' for the health service.
Reuters
11-06-2025
- Business
- Reuters
UK's Reeves presents multi-year spending plans
LONDON, June 11 (Reuters) - British finance minister Rachel Reeves set out her plans to divide up more than 2 trillion pounds ($2.7 trillion) of public spending on Wednesday in a speech she hopes will foster a sense of national renewal. Below are the key quotes: AIM OF THE SPENDING REVIEW: "We are renewing Britain. But I know that too many people in too many parts of our country are yet to feel it. This government's task, my task as Chancellor and the purpose of this spending review is to change that." DEPARTMENTAL BUDGETS: "Today I am allocating the envelope I set out in the Spring. In this spending review, total departmental budgets will grow by 2.3% a year in real terms." "This first rule (on stability) allows me as I set out in the Budget to allocate 190 billion pounds more to the day to day running of our public services over the course of the spending review compared to the previous government's plans." ON CHALLENGES AHEAD: "As I said in the Spring Statement, the world is changing before our eyes. And since the Spring, the challenges we face have only grown more acute. The signs of our age of insecurity are everywhere. So we are acting on the promise in our Plan for Change: Building renewal on foundations of national security, border security and economic security." "At the Budget last year I announced 150 million pounds to establish the new Border Security Command. And today, to support the integrity of our borders I can announce that funding of up to 280 million pounds more per year by the end of the spending review for our new Border Security Command." "We will be ending the costly use of hotels to house asylum seekers, in this Parliament. Funding that I have provided today including from the Transformation Fund will cut the asylum backlog; hear more appeal cases; and return people who have no right to be here, saving the taxpayer 1 billion pounds per year." "To champion those small businesses seeking access to finance as they look to grow, I am increasing the financial firepower of the British Business Bank, a two-thirds increase in its investments, increasing its overall financial capacity to 25.6 billion pounds." "I am proud to announce the biggest cash injection into social and affordable housing in 50 years. A new Affordable Homes Programme – in which I am investing 39 billion pounds over the next decade. "Direct government funding that will support housebuilding, especially for social rent."
Eyewitness News
09-06-2025
- Business
- Eyewitness News
Ramaphosa defends transformation, says it's a necessity not a favour
CAPE TOWN - President Cyril Ramaphosa has defended transformation, saying it's a necessity and not a favour. He said the country must dispel the false notion that a choice must be made between growth and transformation. Writing in his weekly newsletter, the president said economic growth without transformation entrenches exclusion, and transformation without growth is unsustainable. He, on Monday, again moved to dispel the view that Broad-Based Black Economic Empowerment (BBBEE) is a cost to the economy. The president recently challenged political parties in Parliament over their views on Black Economic Empowerment (BEE), stating that it's being viewed incorrectly in relation to economic growth. Ramaphosa said this opinion needs to be challenged, adding that BEE is an investment in the economy. For this reason, Ramaphosa said the government is strengthening initiatives like the Black Industrialists Programme and noted the establishment of the Transformation Fund to support a new wave of emerging businesses that can create job opportunities. 'Our Constitution reflects the promise we made to one another and to future generations to redress the injustices of our past and realise the full potential of our country. For this reason, we reaffirm that Broad-Based Black Economic Empowerment is not just a policy choice but a constitutional imperative,' wrote Ramaphosa. Appearing to take a swipe at his coalition partner, the Democratic Alliance (DA), Ramaphosa said he can't understand why those who continue to benefit from the legacy of exclusion decry BEE to the extent of challenging it in the courts. Ramaphosa said that there was a critical need for black-owned businesses to access funding on affordable terms, and private banks should review their lending practices. ALSO READ:
