Fact Check: No, state won't only be helping 51% black-owned businesses

Fact Check: No, state won't only be helping 51% black-owned businesses

- The expected economic impact of the coronavirus has seen the government offering assistance to small businesses

- A claim that the help on offer would only be extended to companies that are majority black-owned has been widely distributed on social media

- Briefly.co.za explores this claim in a bid to separate fact from fiction

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AfriForum has led cries of outrage against the 'racist policy' they say has been put into place, already launching a campaign against it.

This comes after the government's website to provide relief to small, medium-sized and micro businesses went live early on Tuesday.

Many applicants claimed that to benefit from the aid, companies would need to be mostly owned by black citizens.

This prompted outrage from the lobby group and citizens alike with many feeling that the coronavirus pandemic was not the time to differentiate.

However, The Citizen reports that Sarah Mokwebo, spokesperson for the Department of Small Business Development, has confirmed this is fake news.

READ ALSO: Coronavirus: Ramaphosa announces 21-day lockdown in South Africa

In response to the now-debunked claim, AfriForum had spearheaded a campaign aimed at numerous fake screenshots alleging that companies would need to be 51% black-owned.

Briefly.co.za reported that President Cyril Ramaphosa had announced a number of measures will be put into place to help smaller businesses during the implementation of the 21-day lockdown.

The government announced that this would include a Debt Relief Fund and a Business Growth Resilience Facility:

“The Debt Relief Fund is aimed at providing relief on existing debts and repayments, to assist SMMEs during the period of the Covid-19 State of Disaster. This facility will assist entities to acquire raw material, pay labour and other operational costs. All these interventions will be structured to match the patterns of the SMMEs’ cash flows, as well as the extent of the impact suffered."

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Source: Briefly.co.za

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