Small Business Development Minister Stella Ndabeni-Abrahams, has outlined new budget priorities for enhancing small business growth and market access. Picture: Siyabulela Duda / Independent Media
Last Friday in Cape Town, Minister of Small Business Development Stella Ndabeni-Abrahams presented her department’s budget vote for the 2024/25 financial year.
The department has been allocated a total of R2.437 billion, with the majority of this budget directed towards transfers and subsidies, accounting for 83.5% or R2.034 billion.
The remaining 16.5%, or R403 million, is allocated to compensation of employees (R251.6 million), goods and services (R146 million), and capital (R5.2 million).
Ndabeni-Abrahams has highlighted five main areas of focus regarding market access and localisation.
One significant initiative is the Small Business Exporter’s Development Programme, which aims to support 200 SMMEs in participating in ten trade events during the 2024/25 financial year.
“We will support 200 SMMEs through our Small Business Exporter’s Development Programme to participate in ten trade events in the 2024/25 financial year.
“To this end, R20 million has been allocated to exploit our African Continental Free Trade Area (AfCTA), BRICS partnerships, and various global trade agreements,” Ndabeni-Abrahams said.
Through a partnership with Proudly SA, an e-commerce platform will be launched later this financial year.
Ndabeni-Abrahams also has announced enhancements to the Market Linkage Programme, to place SMME products in key warehouses and on retail shelves.
She has urged South Africans, especially public representatives, to support local products both online and in stores.
The department is collaborating with the public sector to leverage opportunities from the forthcoming Public Procurement Bill.
Additionally, it is working also with corporates through the Community of Practice to influence Enterprise and Supplier Development (ESD) programmes and the procurement of products from small enterprises and co-operatives.
Highlighting efforts to boost the manufacturing sector, the minister said, “We are actively building supplier capacity to meet and sustain market requirements. Our commitment to quality improvement, product testing, and certification is unwavering.
“Through Small Enterprise Development Agency (Seda), we are enhancing productivity improvement. The SEMP at Sefa, with R266.8 million allocated, deepens the black industrialist programme and ensures greater participation of small enterprises in manufacturing.”
The department aims to prioritise new growth drivers with low barriers to entry, the minister has said.
In the financial year 2024/25, it will focus on the energy sector and the tech industry.
Additionally, the department will implement its Cannabis Support Programme, which will address both the industrial hemp value chain and the main-streaming of small indigenous cannabis growers into lucrative markets.
In addressing the challenges faced by small businesses, Ndabeni-Abrahams said, “Access to finance is a key constraint, particularly for previously disadvantaged individuals and start-ups.
“To address this, we have developed an SMME and Co-operatives Funding Policy to expand access to finance and early-stage investment.
“This policy, which we will table to cabinet this quarter, will be a game changer. It proposes a Fund of Funds to de-risk and leverage private sector investment for start-ups.
“We will also prioritise developing a Startup Policy and legislation in collaboration with relevant departments.,” Ndabeni-Abrahams said.
IOL