Guidance Note 600f
Rules - Black Business Growth Funding: Empowerment Financing
The provision of risk capital to support black business was negotiated as part of the Financial Sector Code (“FSC”), as an alternative to the provision of funding to facilitate BEE transactions (FS600 2.2) as well as an additional category of targeted investment by the Financial Sector (FS600 2.1).
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. This guidance note sets out the rules governing the provision of Black Business Growth Funding (BBGF) as allowed for in the Empowerment Financing element of the FSC.
The provisions of FS600 of the revised FSC are inter alia intended to unlock funding for black business people in key sectors of our economy. The aim is to support the transformation of the economy in general, 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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