Finance Minister Tito Mboweni Wants Startups To Ignite South African Economy

“Mid-sized companies are an important engine of economic growth."

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Startup. Rawpixel.com / Shutterstock.com

The global startup economy is worth nearly $3 trillion, a rise of 20% in two years. That’s the size of a not-so-small economy, larger than the GDP of the UK, France, or Brazil.

Technology-driven startups aren’t just contributing to economic growth, in many ways, they are economic growth.

The 2019 Global Startup Ecosystem Report (GSER) has just been published by Startup Genome in partnership with the Global Entrepreneurship Network. It is the world’s most comprehensive and widely-read research on startups.

South Africa’s finance minister Tito Mboweni wants to see a flourishing startup industry tapping into that $3 trillion markets.

“Start-ups will ignite the economy,” Mboweni said during his South Africa’s budget for the 2020/2021 financial year in parliament on Wednesday,

“The tax system supports them in a number of ways, including the preferential small business tax regime, the VAT registration threshold and the turnover tax.

“We will review these to improve their effectiveness while at the same time reducing the scope for fraud and abuse.”

7 South African Startups Poised to Reach R500m in Value

The SA SME Fund’s CEO Circle has announced the initial seven recipients of the CEO Circle Entrepreneurs 2019 Award.

Each recipient will benefit from a ‘personalised pathway’ of support to help them scale into significant companies of R500 million-plus in value, as part of SA’s private sector efforts to stimulate the economy and create jobs.

Endeavor ScaleUp helped run a rigorous selection process. Industry experts and senior businesspeople interviewed and assessed the entrepreneurs and businesses for track record and ability to scale.

A panel of CEOs chaired by Adrian Gore of Discovery, joined by Fani Titi of Investec, Shameel Joosub of Vodacom and Bongani Nqwababa of Sasol, announced the winners on 7 August.

Mid-sized companies are an important engine of economic growth. We will leverage the enormous power of the SA SME Fund’s shareholders (top 50 corporates) and fund managers to help grow these businesses into significant players in the South African economy,” says Adrian Gore, Chairman, SA SME Fund.

For more read: 7 South African Startups Poised to Reach R500m in Value

 

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