Vivian Reddy says it is difficult for black businesses to access capital from traditional South African banks. | Gcina Ndwalane
Durban — One of the biggest problems in our country is that traditional banks do not support black businesses was the utterance made by Durban’s business mogul, Vivian Reddy.
Reddy, chairperson and founder of the Edison Power Group, spoke at the reSURGEnce Conference held at the Inkosi Albert Luthuli International Convention Centre (ICC), this past week.
The global business conference that ends today aims to bring together industry leaders, entrepreneurs, and government officials from the US and South Africa for insightful discussions, networking opportunities, and collaboration sessions aimed at unlocking the vast potential of the African market.
Reddy related how black SMMEs are struggling to get capital, which drew a roar of approval from the attendees seated in the auditorium.
He said getting capital was difficult as he also finished an R2 billion project without a single cent from South African banks.
He believes Durban was rich in culture and that guests should not be housed only in Umhlanga Rocks venues but also in the lovely hotels in townships like uMlazi, where establishments like Maxis’ Lifestyle Village was located.
“That is what’s going to change the economy of this country,” he said.
Reddy said it was not good that South Africans’ pension funds not invested in the country to make it a better place.
The conference’s convenor and publisher of the New York Christian Times, Reverend Dennis Dillon, said the critical component behind the reSURGEnce movement was that the African continent has lost economic power.
Dillon said they were targeting to invest their pension in Durban and tourism was at the top of their list of interest.
“Durban is a resort City and we would like to create synergies so that it functions at its full potential. Working together, we can bring USA and Durban tourism developers and geniuses together,” said Dillon.
When President Cyril Ramaphosa delivered his speech at the opening of parliament on Thursday he said on a recent visit to Durban, he met with local business leaders and municipal officials. He said they told him that they wanted to work together to build a city that they could be proud of.
Ramaphosa said the eThekwini presidential working group was formed to enhance support from national and provincial governments to turn metro administration around, fix water and sanitation problems and attract new investment.
The chairperson of Banking and Investment in the State of New York, Senator James Sanders Junior said the partnerships that will emerge from the conference were expected to yield $4 billion’s (R73bn’s) worth of investments for the country over the next 10 years. This is planned to be achieved through multi-sectoral projects, focusing on the emancipation of black-owned businesses.
“We are aiming for legislative reforms in the United States of America (USA) that will allow for easy flow of investments targeting Black Africans. Plans are in place to amend legislation and have policies and laws that will allow them to invest their pension money in African cities, especially Durban,” he said.
Sunday Tribune