Non-governmental organisation AfriForum has launched a petition against Minister of Trade, Industry and Competition Parks Tau’s proposed plan to get private-sector entities to contribute an equivalent of 3% of annual net profit after tax for the development of black suppliers under the proposed R100-billion transformation fund, labelling it “racially discriminatory”.

The fund is aimed at supporting black-owned businesses and small, medium-sized and microenterprises and also aims to address the financial barriers faced by historically disadvantaged groups, including black South Africans, women, youth, people with disabilities, and those residing in rural and township areas.

However, it will be funded by the enforcement of more Broad-Based Black Economic Empowerment Codes in the private sector,

AfriForum expressed its “moral objections” to any fund which distributes finances based on race, pointing out that the fund is “immoral and destructive”, and it also poses a risk of corruption.

“The significant levels of corruption and looting that plagued the government’s R500-billion Covid-19 support funds serve as the perfect example of this risk. Finally, decades of racially discriminatory policies under African National Congress (ANC) government have failed dismally to reach its stated goals of uplifting the poor and addressing the unemployment crisis. Unemployment has, as a matter of fact, drastically risen since the introduction of these new race laws,” it said.

AfriForum head of public relations Ernst van Zyl said a struggling South African economy could not afford more government tax and more racial discrimination.

“The ANC’s failed race-obsessed experiment has gone on for long enough. It is time to give meritocracy and a business-friendly approach a chance,” he added.

He highlighted that government already had more than 141 race laws on its books, which qualify it as the “most race-mad government in the world”.

“…this shocking statistic is a source of shame, not something to be celebrated or even expanded upon,” Van Zyl said.

Meanwhile, the Democratic Alliance has since called for Tau to immediately bring the fund to Cabinet for proper discussion and approval.

The party said the policy was a “clear violation of the principle of good governance, undermining Cabinet and the Government of National Unity.”

The party said it would not support any effort that tried to “undermine” the rule of law or “jeopardise” the competitiveness of the South African economy.