Minister outlines ambitious MSME support plan at Buy Local Summit
Small Business Development Minister Stella Ndabeni has reaffirmed the government's dedication to fostering conditions that allow small enterprises to flourish across South Africa. Addressing delegates at the 14th Annual Proudly SA Buy Local Summit and Expo at the Sandton Convention Centre in Johannesburg on Tuesday, the Minister outlined a sweeping plan to bolster the country's micro, small and medium-sized enterprises.
Ndabeni announced that the Department of Small Business Development and the Small Enterprise Development Finance Agency intend to extend both financial and non-financial assistance to one million MSMEs during the seventh administration.
"We will improve access to enabling business infrastructure and equipment and will scale-up access to finance for MSMEs across all segments, working closely with other Development finance institutions (DFIs), banks and non-bank financial institutions."
Central to the government's strategy is the rollout of the Red Tape Reduction Framework, which equips municipalities and businesses with practical tools to tackle bureaucratic obstacles hampering small enterprises. Alongside this, the E-Registration System Programme will be expanded to simplify business registration across districts and local governments, making it more efficient and accessible.
The Minister indicated that authorities would work to better align financial products with enhanced market readiness support, investment preparation and post-investment assistance to ensure long-term business sustainability.
Local spending key to tackling unemployment
Ndabeni stressed the vital contribution MSMEs make to addressing South Africa's most pressing socioeconomic challenges, including joblessness and inequality. She noted that small businesses employ millions of workers, with most estimates suggesting they account for as much as 60% of all employed persons nationwide.
"MSMEs create pathways for young people entering the workforce, they empower women entrepreneurs, and they prop up local economies across the length and breadth of South Africa. They give innovative ideas the chance to grow into commercially thriving enterprises. But these MSMEs can only succeed when communities support them."
Every rand channelled towards a local business, Ndabeni explained, circulates within the economy, enabling enterprises to grow, take on additional staff and strengthen their communities. A single purchase could help a business owner recruit a new employee, train an apprentice or open another branch, she added.
The Minister further pledged that the forthcoming Business Licensing Bill would simplify the process of starting and running a small business rather than adding further hurdles. She also called on government to champion e-commerce platforms showcasing locally manufactured products.
"We have the talent and the quality but still seem enamoured with global brands. This is where Proudly SA plays such an important role, and I encourage you to pick up your promotional and advocacy work to profile our local brands."
Ndabeni cautioned that international online marketplaces offering mass-produced goods at a fraction of local production costs pose a genuine threat to South African manufacturers, adding that the matter has been raised with relevant countries through bilateral trade negotiations.
