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indigenous business people to buy shares in multinational companies selling equity.
“We have been lobbying the finance ministry to give us the money to meet our requirements,” he said.
“As we speak right now, nothing has been released yet everyday operations require working capital.”
Mr Chapfika said the funds would be used to finance the operations of local beneficiaries of the indigenisation and economic empowerment programme.
He said the banking sector was also reluctant to offer long-term lines of credit and loans to indigenous businesses.
“They demand collateral, which most locals do not have, thus limiting their chances of acquiring loans to finance their operations,” he said.
Mr Chapfika urged banks to assist the local businesspeople, which would boost their confidence in the banking sector.
“The more they create mutual trust in business transactions, the more they would have confidence in each other,” he said.
Meanwhile, the board announced plans to raise US$1 billion working capital through the National Indigenisation and Empowerment Fund.
The money would be raised through the collection of the empowerment levy, borrowing through empowerment bonds, strategic aid, as well as lines of credit from banks. — New Ziana.
Online Reporter