Cape Town – Small Business Development Minister Stella Ndabeni-Abrahams says her department is fully prepared to unleash the potential of small and medium-sized enterprises (SMMEs) across the country.
She made these remarks during the department’s Budget Vote presentation in Cape Town last Friday.
“One of the main contributing factors to the low [economic] growth is that too many of our citizens are unable to participate in productive economic activities.
“So in addition to championing reforms that will address energy supply constraints, logistics and crime – which are the focus of Operation Vulindlela – we must also direct our energies to reforms that unlock the potential of SMMEs and the cooperative sector.
“This must be the core priority of the seventh administration, and one for which we bear responsibility as the Department of Small Business Development portfolio. [We] want to assure all members and society that even though we are young and still developing, we are up to the tasks that lie before us,” she said.
The department has been granted a budget totaling approximately R2.437 billion.
Small Business Development Minister Stella Ndabeni-Abrahams says the department she leads is “up to the task” of unlocking the potential of small and medium-sized enterprises (SMMEs) in the country.https://t.co/WDNFThevsP pic.twitter.com/TjAWgrzhp9
— @SAgovnews (@SAgovnews) July 14, 2024
The minister outlined the department’s strategic focus on improving market access and localization for SMMEs through several initiatives:
- Supporting 200 SMMEs in trade events under the Small Business Exporter’s Development Programme, with R20 million allocated for leveraging global trade agreements.
- Enhancing the Market Linkage Programme to place SMME products in strategic warehouses and retail shelves, including the development of an upcoming e-commerce platform.
- Collaborating with the public sector to capitalize on opportunities presented by the Public Procurement Bill, influencing Enterprise and Supplier Development programs.
- Strengthening supplier capacity through quality improvement, product testing, and certification, alongside productivity enhancement initiatives via Seda.
- Allocating R266.8 million through Sefa’s Small Enterprise Manufacturing Support Programme to deepen the black industrialist program and expand small enterprise participation in manufacturing.
- Prioritising new growth sectors such as energy, technology, and cannabis through targeted support programs aimed at enhancing market opportunities for small businesses.
Ndabeni-Abrahams emphasised that access to financing continues to be a major challenge for small businesses and cooperatives.
To address this issue, the department has formulated a policy aimed at enhancing access to funding and early-stage investment for SMMEs and cooperatives.
“This policy will be a game changer as it also proposes an establishment Fund of Funds, which we are currently designing. The fund will de-risk and leverage investment from the private sector and institutional investors for start-ups amongst other things. We will also prioritise the development of a Startup Policy and legislation as required. This will be done in collaboration with relevant departments.
“We will also continue to build on the work we have already undertaken in the previous administration to invest more in under-served SMMEs and co-operatives.
“In this regard, Sefa disbursed R2 billion funding facilities against a target of R2.18 billion to 80 040 SMMEs and co-operatives which led to 98 378 jobs,” Ndabeni-Abrahams said.
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Compiled by Betha Madhomu
