By Phenyo Selinda
Cape Town, – Small Business Development Minister Stella Ndabeni-Abrahams has declared her department’s commitment to unlocking the potential of small and medium-sized enterprises (SMMEs). Speaking during the department’s Budget Vote in Cape Town on Friday, the Minister outlined a comprehensive plan aimed at driving economic growth through robust support for SMMEs and cooperatives.
Addressing Economic Growth Challenges
“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,” Minister Ndabeni-Abrahams stated. She emphasised that beyond tackling energy supply issues, logistics, and crime, reforms must focus on enabling 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 affirmed.
The department has been allocated a budget of R2.437 billion to implement its strategic initiatives.
Key Areas for Market Access
Minister Ndabeni-Abrahams highlighted five priority areas aimed at improving market access and localisation for SMMEs:
- Support for Small Business Exporters: The department will support 200 SMMEs through the Small Business Exporter’s Development Programme, participating in ten trade events in the 2024/25 financial year. An allocation of R20 million has been set aside to leverage partnerships within AFCFTA, BRICS, and other global trade agreements.
- Market Linkage Programme: This programme will be enhanced to ensure SMME products are placed in strategic warehouses and retail shelves. A partnership with Proudly SA is underway to develop an e-commerce platform, expected to launch in the second half of the financial year.
- Public Procurement Bill: The department is collaborating with the public sector and corporates to exploit opportunities presented by the upcoming Public Procurement Bill, influencing Enterprise and Supplier Development (ESD) programmes and procurement practices.
- Supplier Capacity Building: Through Seda, the department will provide quality improvement, product testing, and certification to meet market demands. The Small Enterprise Manufacturing Support Programme (SEMP) at Sefa will see R266.8 million allocated to enhance the black industrialist programme and foster small enterprise participation in the manufacturing sector.
- New Growth Drivers: Focusing on sectors with low entry barriers, the department will target the energy sector and tech industry. Additionally, the Cannabis Support Programme will explore the industrial hemp value chain and mainstream small indigenous cannabis growers.
Financing for Small Businesses and Cooperatives
Recognising the financial constraints faced by SMMEs, the department has developed an SMME and Co-operatives Funding Policy to expand access to financing and early-stage investment. The policy proposes the establishment of a Fund of Funds to de-risk and leverage private sector investments for start-ups.
“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,” Ndabeni-Abrahams explained.
Download Here:
Read all our publications on magzter:
https://www.magzter.com/ZA/Central-News-Pty-Ltd/Central-News/Newspaper/All-Issues
________________________
Central News also offers Sponsored Editorial Content, Podcasts , Radio / Social Media Simulcast, Video Production , Live Streaming Services, Press Conferences, and Paid Interviews (Video/Audio) etc.
We guarantee exceptional exposure, reach, and engagement, with an excellent return on investment.
Advertisement:
To place your advert on our platforms (Print Newspaper or Digital Platforms) : Please email : sales@centralnews.co.za
For Business Related:
business@centralnews.co.za
Newsroom:
Send your Stories / Media Statements To: newsroom@centralnews.co.za
General Info:
info@centralnews.co.za
Office Administrator:
admin@centralnews.co.za
Whatsapp / Call: 081 495 5487
Website: https://www.centralnews.co.za
Social Media Platforms (@centralnewsza) : Linkedin, Facebook, Tiktok, Twitter, Instagram, Youtube
#centralnewsza #freestate