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South Africa’s Small Business Development Minister Pledges Robust Support for SMMEs

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CAPE TOWN - Small Business Development Minister Stella Ndabeni-Abrahams affirmed the department's commitment to advancing small and medium-sized enterprises (SMMEs) in South Africa during the department's Budget Vote in Cape Town on Friday.

According to South African Government News Agency, the department is prepared to tackle significant challenges to foster the growth of SMMEs and cooperatives, emphasizing that these sectors are critical for economic expansion and inclusion. She cited barriers such as energy supply, logistics, and crime, which will be addressed alongside broader reforms to stimulate SMME activity, as central to their strategy.

The Minister outlined several initiatives aimed at enhancing market access for small businesses. These include supporting 200 SMMEs to participate in international trade events through a R20 million allocation and enhancing domestic market linkage programs to place SMME products in major retail spaces. Furthermore, collaboration with the public sector and corporates will seek to exploit opportunities arising from the pending Public Procurement Bill and improve procurement from small enterprises.

In addition to market access, the department is also focusing on building supplier capacity through quality improvement, product testing, certification, and productivity enhancements via the Small Enterprise Development Agency (Seda). Another R266.8 million has been directed towards the Small Enterprise Manufacturing Support Programme to deepen participation in the manufacturing sector, particularly among black industrialists.

Highlighting the financial challenges facing small businesses and cooperatives, Ndabeni-Abrahams revealed plans to implement an SMME and Co-operatives Funding Policy, which includes establishing a Fund of Funds to attract private and institutional investments. This policy aims to expand access to finance and foster early-stage investment, which she described as a game-changer for the sector.

The department’s budget for these initiatives totals some R2.437 billion, with a keen focus on industries like energy and technology and a new Cannabis Support Programme designed to integrate small-scale cannabis growers into more lucrative markets.