THE ICT CHARTER

lack people including black women in ICT companies operating
in South Africa;
• explore the notion of collective ownership through co-operatives
and other similar structures; and
• provide clarity in and a standardized definition of ownership.
Challenges
The following are some of the major challenges facing the sector in
attaining the objectives described above:-
• Access to Funding – This is one of the major challenges
facing black people wishing to acquire equity in ICT
enterprises. In the previous historical dispensation, the black
population in South Africa never had the opportunity to build
an adequate capital base to support funding requirements. It
has been submitted that where funding is available,
applications for start-up finance mainly by black owned or
black-controlled enterprises have been met with the inflexible
requirement that prospective applicant entrepreneurs make
their own financial contributions to the intended businesses. In
addition and despite South Africa’s relatively large venture
capital market available for investment (within the continent),
such funding is mostly targeted at “large” safe investments and
these funds are in the control of a “risk-averse” financial
system.
It has further been submitted that the requirement for black
people to raise collateral in order to access these funds is an
onerous one.
• Funding Mechanisms- In many instances, terms associated
with funding mechanisms are usually restrictive, and as such,
limit the economic benefits flowing to black participants.
• Cost of Funding – Empowerment transactions are often too
expensive for the black participants seeking to conclude
empowerment deals. Often these deals are viewed as too risky
and attract a high finance premium. In some instances, the
price of an asset under acquisition would be highly inflated or
the owners regard empowerment as an easy way to cash out.
• Empowerment Goodwill – It has been submitted that the
inclusion of black people in the equity ownership of a company
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