Willowton Group, Al Baraka Bank join forces to help SA’s SMMEs survive COVID-19 crisis

In a time of great uncertainty and economic turmoil, South Africa's SMME sector is facing unprecedented challenges due to the COVID-19 crisis. To address the financial strain on these small businesses, the Willowton Group and Al Baraka Bank have teamed up to launch the Giving for Hope Foundation. This initiative aims to provide much-needed support to SMMEs through an initial funding of R100 million, with a target goal of R500 million. Zubeir Moosa, CEO of Willowton Group, shared insights on this groundbreaking collaboration during an interview on CNBC Africa. Moosa emphasized the urgency of collective action in the face of the pandemic, stressing the importance of unity and collaboration among all South Africans. The fund operates on a unique model where contributors can choose to either donate or lend funds. While the fund is still in its early stages, Moosa highlighted a significant level of interest and support from both known and unknown individuals looking to contribute. One of the key challenges ahead is reaching the ambitious goal of R500 million. Moosa acknowledged the difficulties posed by the current economic climate but remains optimistic about achieving the target within the next two weeks. Fund trustees and ambassadors are actively engaging with potential donors to drive fundraising efforts and secure vital financial aid for SMMEs. The impact of the pandemic on businesses is expected to be severe, with Moosa predicting that up to 25% of businesses may not survive the crisis. The most vulnerable are small enterprises, including restaurants, service providers, and micro-enterprises. As the lockdown continues, the financial strain intensifies, posing a daunting challenge to businesses across South Africa and globally. Reflecting on the potential extension of the lockdown, Moosa emphasized the need for a balanced approach that prioritizes public health while mitigating the economic fallout. While an extension is crucial to containing the spread of the virus, measures must be in place to support businesses and allow for some level of operation to prevent further financial losses. Amid the uncertainty and turmoil, Moosa finds hope in the unity and solidarity displayed by diverse sectors of society. The crisis has brought together people from various backgrounds, transcending political and religious divides to collectively address the challenges at hand. This spirit of collaboration and resilience serves as a beacon of hope amidst unprecedented times, reaffirming the strength of the South African community in overcoming adversity.