NEF And Competition Commission Sign MoU To Entrench Compliance And Fair Business Practice
NEF And Competition Commission Sign MoU To Entrench Compliance And Fair Business Practice. The National Empowerment Fund (NEF) and the Competition Commission of South Africa (CCSA) have signed a Memorandum of Understanding (MoU) aimed at fostering collaboration in key areas of economic development and market regulation.
The MoU outlines four primary areas of collaboration: merger control, development fund management, market research, and the establishment of an Employee Ownership Fund. These elements are designed to provide comprehensive support and drive sustainable growth for enterprises owned by historically disadvantaged persons (HDPs).
Development Funds
The NEF and CCSA will work together to manage and administer development funds created from conditions imposed by the Competition Tribunal. These funds will be used for developmental purposes within impacted industries, with the NEF positioned to effectively disburse and manage these resources. The terms of the funds will be aligned with the conditions set by the Competition Tribunal, ensuring that they meet specific industry needs.
Mergers and Acquisitions
In the realm of mergers and acquisitions, the CCSA will consult with the NEF to address issues affecting HDPs and Small, Medium, and Micro Enterprises (SMMEs). Both parties will exchange information, provide advice, and collaborate on establishing merger remedies and development funds specifically tailored for HDPs.
Research and Sector-Specific Market Information
The agreement emphasises the importance of sharing market research and sector-specific information. The CCSA will provide valuable market insights that align with the NEF’s mandate to enhance the economic participation of HDPs. This includes sharing data on market structures, opportunities for HDPs, and barriers to entry, which will inform funding strategies and development programmes.
Employee Ownership Fund
A notable feature of this MoU is the establishment of the Employee Ownership Fund (EO Fund). Both the NEF and the CCSA will equally contribute monetary resources to this fund, which will be managed and administered by the NEF. The EO Fund aims to promote and unlock value chain opportunities, facilitating greater uptake and impact. The Parties will also enter into a memorandum of agreement to regulate their collaboration regarding the EO Fund and the development of a pipeline for meaningful and impactful projects.
The MoU was signed on the sidelines of the 18th Annual Competition Law, Economics and Policy Conference at the @Sandton Hotel in Johannesburg. It highlights both parties’ commitment to supporting the growth of HDP industrialists and enhancing market competitiveness while maintaining their respective operational independence. It also outlines principles for cooperation, information sharing, and confidentiality, ensuring a robust and transparent collaboration. This MoU replaces an agreement signed between the two parties on the same areas of cooperation in 2021.
Speaking at the signing ceremony, Dr Nthabiseng Moleko, NEF Chairperson, noted: “This MoU is a testament to our dedication to empowering black industrialists and elevating market competitiveness, while preserving the operational independence of all parties involved. It establishes a framework for effective cooperation, transparent information sharing, and confidentiality. This partnership will pave the way for meaningful advancements in economic development.”
Mr Mziwabantu Dayimani, Acting CEO of the NEF, added: “This MoU signifies a major advancement in our mission to support black-owned businesses. By partnering with the CCSA, we are enhancing our capacity to provide crucial resources and opportunities for growth. This collaboration will greatly strengthen our efforts to foster economic development and ensure that black industrialists have the support they need to thrive.”
Ms Doris Tshepe, Commissioner of the Competition Commission of South Africa, said: “This agreement is a testament to our shared commitment to fostering inclusive growth and advancing the participation of particularly historically disadvantaged persons in South Africa’s economy. Through this partnership we aim to deepen our collaboration and leverage each other’s expertise to drive meaningful economic development.”
