Systemic racism in South African government funding institutions

By Ben Sassman

For decades, South Africa has been plagued by systemic racism in its government structures, pre and post-Apartheid, and nowhere is this more evident than in its so-called “developmental” funding institutions.

These institutions, designed to support economic growth and entrepreneurship, have been hijacked by racial bias, leaving certain groups, particularly Coloured South Africans, systematically locked out of funding opportunities. This is not speculation; this is my lived experience, and it is backed by hard facts.

I have spent three years navigating the labyrinth of South Africa’s funding institutions, submitting application after application, only to be met with rejection, bureaucracy, and empty promises totalling 25 rejections. It has become glaringly obvious that these institutions are designed to serve a select group while deliberately excluding others.

South Africans are being left to fend for themselves in a system that has no interest in their progress. And yet, the government has the audacity to preach transformation and inclusivity while its very policies perpetuate economic oppression.

According to government data, Coloured applicants receive a mere 7.17% of approved funding, a number so disproportionately low that it is nothing short of economic sabotage. How can we, as South Africans, claim to be building an inclusive economy when state resources are deliberately withheld from a portion of the population. The reality is clear, if you are not Black under the government’s racial classification system, you are an afterthought, if considered at all.

My case is not unique. Countless Coloured entrepreneurs have faced the same discrimination, but their voices are silenced under the weight of bureaucracy. We are expected to accept our fate quietly, while our businesses cannot launch due to lack of support, while our families suffer, and while our communities remain in economic limbo. The government refuses to acknowledge this injustice because doing so would expose the ugly truth, that its funding institutions are not about development, but about exclusion.

I have exhausted all available channels. I have submitted proposals, made formal requests, presented in Parliament (twice), met with Ward Councilors, one Minister with all to no avail. And when I sought to escalate my concerns to the highest office in the land, President Cyril Ramaphosa himself, sending 156 emails requesting a meeting, I was met with aggressive and unsympathetic gatekeepers.

The President, who should be the leader of all South Africans, refuses to even acknowledge the issue, let alone address it. What does that say about his commitment to equality and economic justice? The State of the Nation Address spoke about R20B per year for the next five years towards Black Economic Empowerment  investment, what percentage of that, allocated money, will be directed towards Coloured Entrepreneurs.

Hypocrisy

The hypocrisy is staggering. The government speaks of reconciliation, yet it actively fosters division through its exclusionary policies. It claims to support entrepreneurs, yet it ensures that only a select few have access to financial resources. It boasts of economic transformation, yet it deliberately stifles the progress of those who do not fit its preferred racial profile. This is not governance, this is discrimination masquerading as policy.

South Africa cannot move forward until this blatant racism is dismantled. It is time for the government to be held accountable for its failure to serve all citizens equally. It is time for funding institutions to be audited, their policies scrutinized, and their, politically appointed, leadership questioned. It is time for change, real change, not just empty slogans like “Leave no one behind” and false promises.

We lost Elon Musk to the US, where he was supported and given the resources to build one of the most successful companies in the world. Imagine if South Africa had supported him instead, our economy could have reaped the benefits of a homegrown Tesla, SpaceX, or another world-changing innovation. But no, our funding institutions prioritize race quotas over innovation, effectively shutting the door on potential global business leaders. This short-sighted approach is ensuring that South Africa continues to lose out on companies that could have a global impact.

The South African government should also get away from offering these small loans of R1 000 to R100 000. This is not capital to grow a company. Most of the funding institutions require "Project Owner Contributions," which clearly indicates they only want to support existing businesses or applicants with money.

What about supporting applicants who cannot afford to "contribute"? Are we not allowed to dream and have a piece of the land of Milk and Honey?

Ben Sassman is the founder and CEO of  Hemp 4 Life.

** The views expressed do not necessarily reflect the views of IOL or Independent Media.

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