Minister Stella Ndabeni-Abrahams. Picture: Siyabulela Duda/GCIS
The Department of Small Business Development has pledged to prioritise and expand access for financing for small and medium-sized enterprises (SMMEs).
Minister Stella Ndabeni-Abrahams said financing remained one of the key constraints for small businesses and co-operatives.
In this regard, Ndabeni-Abrahams said her department had developed a SMME and Co-operatives Funding Policy which sought to expand access to financing and early stage investment.
“This policy will be a game-changer as it also proposes to establish a fund which we are currently designing. The fund will de-risk and leverage investment from the private sector and institutional investors for start-ups, among others.
“We will also prioritise the development of a start-up policy and legislation as required. This will be done in collaboration with the relevant departments. We will also continue to build on the work we have already undertaken in the previous administration to invest more in underserved SMMEs and co-operatives.
“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.
The minister further said the department wanted this to be the main priority of the 7th administration, adding that it would bear responsibility as the Department of Small Business Development’s 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.”
According to the minister, the department has been allocated a budget of R2.437 billion.
The department would be focusing on five areas related to market access and localisation, which had proved to be barriers for SMMEs in this administration.
During the department’s budget vote, Ndabeni-Abrahams alluded that her department would support 200 SMMEs through its own Small Business Exporter’s Development Programme, which is set to participate in 10 trade events in the 2024/25 financial year.
“In this regard, R20 million has been allocated to exploit our African Continental Free Trade Area (AfCFTA), BRICS partnerships, and various global trade agreements. We will enhance our market linkage programme to ensure placement of SMME products in strategic warehouses of wholesalers and on the shelves of retailers.
“Through our partnership with Proudly SA, we are developing an e-commerce platform that is likely to go live in the second half of this financial year.
“We are working with the public sector to exploit opportunities which will be presented by the Public Procurement Bill (once signed into law). We are working with corporates through Community of Practice to influence Enterprise and Supplier Development (ESD) programmes and procurement of products from small enterprises and cooperatives,” the minister said.
The Star
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