The South African government remains committed to ensuring sustainable support for micro, small and medium enterprises (MSME), recognizing their crucial role as the backbone of the country’s economy.

In an exclusive interview with the SAnewsActing Director General (ADG) of the Government Communications and Information System (GCIS), Nomonde Mnukwa, highlighted the deliberate steps taken by the government to foster the development of MSMEs, as well as the wide range of programs and initiatives aimed at empowering small businesses, co-operators and informal businesses.

She stressed that the government’s support for small businesses is based on their significant contribution to the economy and the livelihoods of citizens.

The National Development Plan places responsibility on MSMEs to create 90% of new jobs in the South African labor market.

“The government is very committed to providing targeted support to small businesses, including cooperatives, micro-enterprises and informal businesses, as we know they are a major source of employment and a key contributor to inclusive growth” .

“MSMEs not only help feed many households, but when they grow, they also create jobs, thereby helping to reduce unemployment,” she explained.

Recognize success
Acknowledging the success of many economies across the world that thrive on robust MSME sectors, Mnukwa said the government has taken a similar approach by establishing a dedicated small business development department.

She added that the government’s commitment extends beyond national programs, with provincial and municipal structures playing a key role in ensuring that MSMEs receive the necessary support to incubate, grow and sustain themselves.

“Provincial departments are bridging the gap by providing assistance to MSMEs in areas not covered by national programs. Additionally, local municipalities have created local economic development units to provide financial assistance and advice at the community level.

“All three spheres of government are working together to ensure comprehensive coverage, extending their reach to support as many small businesses as possible across the country,” she said.

Government strategy for MSMEs
The government’s MSME strategy, the National Integrated Small Enterprise Development (NISED) framework, is also designed to tackle inequality. The Sixth Legislature also passed the National Small Business Amendment Bill, which was signed into law by the President to advance the interests of small businesses.

“There are special programs specifically aimed at previously disadvantaged groups, as well as businesses operating in rural areas or townships, to tackle both unemployment and inequality,” she said.

Financial and non-financial support
Mnukwa highlighted the key financing mechanisms available to MSMEs through the Department of Small Business Development.

“The Department of Small Business Development, together with its merged entities – the Small Enterprise Development Agency and the Small Enterprise Finance Agency, now known as the Small Enterprise Development Finance Agency – now provide a single point of access for investors financial and non-financial. support, simplifying the process for entrepreneurs.

Non-financial support includes capacity building, training and business plan assistance.

Financial support is provided through various financing models, including grants, blended finance (a mix of grants and loans), and low-interest loans at favorable rates compared to regular banks.

In addition to these broad initiatives, there are sector-specific programs, such as the Small Business and Manufacturing Program, which funds working capital and equipment for manufacturing companies, and the Spaza-Shop Support Program aimed at entrepreneurs from townships and rural areas who own Spaza stores. , general merchants or grocery stores.

There is also the Amavulandlela Funding Program grant which provides opportunities for South Africans with disabilities to enter the mainstream economy and establish qualifying entrepreneurial businesses. The grant provides credit facilities ranging from a minimum of R50,000 to a maximum of R15 million.

“Each of these programs has different qualification criteria, so it is essential that applicants verify specific requirements. However, at the informal level, such as in informal settlements, the requirements are lower. Contractors do not need to be registered with SARS (South African Revenue Service) or have a business bank account if they have valid ID, a personal bank account and a business certificate from the municipality , they may be eligible.

“This is based on the recognition that many of us were raised by mothers who supported us by selling vegetables or amagwinya (fat cakes) on the streets, thereby contributing significantly to the economy,” he said. Mnukwa said.

Empowerment of youth and women

The ADG also highlighted the importance of youth and women empowerment within the MSME space.

The National Youth Development Agency, located within the Presidency, plays a central role in supporting young entrepreneurs by providing them with both financial support and training to enable them acquire the skills needed to manage their business effectively.

Additionally, the SheTrades program provides vital support to women-owned businesses, enabling them to access domestic and international markets. The program helps women entrepreneurs obtain certifications and product listings at major retailers like Clicks, Dischem and Pick n Pay, and opens doors to new business opportunities.

Support for agricultural and rural businesses

Mnukwa highlighted the work being done in collaboration with the Ministry of Agriculture, Land Reform and Rural Development to support smallholder farmers and rural enterprises.

These efforts provide farmers with equipment, training and market connections, contributing to the broader goal of building an inclusive economy. She added that the government’s large-scale land restitution and redistribution program is also progressing, with 24% of South Africa’s agricultural land now owned by black farmers.

Comprehensive support for small businesses, Mnukwa stressed, is not limited to financial assistance but includes in-depth training, mentoring and market access initiatives. “The Government is deliberately ensuring that small businesses, particularly those from disadvantaged communities, have access to the tools they need to grow and succeed,” she said.

There is also the National Rural Youth Service Corps program which targets unemployed rural youth aged 18 to 25 with a Grade 12 certificate as part of the rural economy transformation strategy.

“The program develops the skills of targeted participants through various skill development initiatives in partnership with other public and private sector institutions.

“It exposes participants to different skill areas that aim to instill a culture of discipline, patriotism, community service as well as technical and vocational skills that equip participants with skills in construction, agriculture, household profiling, welding and records management, among others,” she said. said.

Through these varied programs and emphasis on inclusiveness, Mnukwa said the government aims to ensure that MSMEs continue to drive South Africa’s economic growth and create jobs, thereby helping to reduce unemployment and address long-standing inequalities. – SAnews.gov.za