South Africa marked 32 years of democracy in 2026, a milestone that reflects the country’s transition from apartheid rule to a constitutional democracy founded on equality, dignity, and political freedom.
But for many Black entrepreneurs, the promise of freedom has not fully translated into financial freedom or meaningful economic participation.
As the country observed Freedom Day on April 27, the conversation around economic inclusion remained unresolved. While political freedom is firmly established, many entrepreneurs argue that access to finance and opportunity is still unequal.
At the centre of this debate is a persistent question: Why do so many Black entrepreneurs continue to struggle to access funding, even in a system with established support programmes?
A system that exists, but hard to enter
According to the CEO of the Black Entrepreneurs Alliance, Refilwe Monageng, the issue goes beyond individual loan rejections and points to deeper structural challenges.
“The issue is not just mindset within banks. It’s structural. Black entrepreneurs are still profiled as high risk, and that affects access to finance,” Monageng said.
The organisation has formally engaged government institutions calling for reform in the credit system.
“We’ve written to the National Credit Regulator, the Minister of Finance, and Parliament’s Finance Portfolio Committee, calling for a reset in terms of credit and tax amnesty,” he said.
Monageng added that many entrepreneurs remain excluded from opportunities due to procurement compliance systems such as the Central Supplier Database.
“You need to be tax compliant, fully registered, and approved. Even after getting a purchase order, you still need access to trade finance. Without credit access, you cannot deliver,” Monageng added.
He argued that historical inequality continues to shape access to opportunity.
“Apartheid-era structural systems still inform opportunities, especially for the Black majority,” charged Monageng.
Freedom Day and the promise of entrepreneurship
While the government has introduced various interventions to support small businesses, experts say implementation gaps remain.
“There are several reasons why many business owners feel a deep connection with Freedom Day,” said Kevan Govender, Regional Investment Manager at Business Partners Limited.
“The first Freedom Day in 1994 marked the moment when whole industries, business districts, markets and opportunities opened up for all South African citizens, creating an environment where all businesses could flourish,” Govender said.
He added that entrepreneurship mirrors the country’s democratic journey.
“Much like South Africa’s journey from 1994, every entrepreneur strives for freedom, autonomy, and the ability to choose their own destiny,” he said.
In his Freedom Day address in Bloemfontein on Monday, April 27, President Cyril Ramaphosa reminded citizens that they are “ custodians of a hard-won legacy of freedom.”
“Every rand stolen is an attack on our democracy,” he added underscoring the link between governance, accountability and the country’s broader struggle for economic justice.
His remarks come at a time when many entrepreneurs argue that without fair access to finance, markets and support systems, the promise of economic freedom remains incomplete.
When relief does not reach those who need it
The COVID-19 pandemic exposed the fragility of many small businesses. Relief funding was designed to provide a lifeline, but for many entrepreneurs, especially Black-owned businesses, access remained limited.
“Many Black businesses did not benefit from relief funding because the barriers to entry were too high,” Monageng said.
These barriers included strict requirements for tax compliance, formal financial records, and audited statements, which many early-stage businesses cannot afford.
A major challenge lies in the regulatory framework governing access to state support. To participate in government procurement opportunities through systems such as the Central Supplier Database, businesses must be fully compliant with tax and administrative requirements.
“Compliance requirements have been made so complex that many Black entrepreneurs are locked out before they even get to the funding stage,” Monageng explained.
This creates what some describe as a “compliance trap”, where businesses cannot access funding without compliance, but cannot achieve compliance without funding.
Risk, lending and inequality
Within the financial sector, ongoing debates continue around risk-based lending models and whether they disproportionately affect Black borrowers.
Usury expert Emerald van Zyl questioned the fairness of current risk classifications.
“They always say Black people are high risk. But everything is labelled high risk. Many Black households have government-subsidised housing. How are they more risky?” he said.
He added that affordability assessments, often capped at around 30% of income, already determine repayment capacity, suggesting that approved borrowers should theoretically be able to manage credit responsibly.
Business advocates are now calling for a credit and tax amnesty to help struggling entrepreneurs re-enter the formal economy and participate more meaningfully in economic activity.
“Without a reset through credit and tax amnesty, many entrepreneurs will never be able to re-enter the formal economy,” Monageng said.
