PRETORIA—President Cyril Ramaphosa has signed the National Small Enterprise Amendment Bill into law, creating a consolidated framework to enhance governmental support for small and medium enterprises (SMEs) and expand economic participation across South Africa.

According to South African Government News Agency, the newly signed National Small Enterprise Amendment Act revises the National Small Enterprise Act of 1996 to establish the Small Enterprise Development Finance Agency. This new entity merges the existing Small Enterprise Development Finance Agency (SEFA), the Small Enterprise Development Agency (SEDA), and the Cooperative Banks Development Agency (CBDA) into a single, streamlined organization designed to act as a one-stop-shop for small business support.

The newly formed agency will provide comprehensive services to aspiring entrepreneurs and promote the development of Cooperative Banking Institutions (CBIs). The legislation also introduces the Office of the Small Enterprise Ombud Service, tasked with addressing complaints and potentially recommending that the Minister of Small Business Development prohibit certain unfair trading practices affecting small enterprises.

Moreover, the new law grants the Minister the authority to set regulations that will define the classification of micro, small, and medium enterprises and govern the enactment of any legislation impacting this sector. This structural reform is part of a broader initiative to enhance the economic framework for SMEs in South Africa, aiming to foster a more inclusive and supportive environment for emerging businesses.