Department of Small Business Development Budget Vote addresses

  1. Address by Deputy Minister Nokuzola Capa (MP) delivered in the National Assembly, 25 July 2020.

Honourable Speaker, today’s session is critical to the SMMEs and Cooperatives who are waiting to hear how much we have budgeted to support their enterprises and initiatives. I therefore would like to start by tabling our budget for the 2020/21 financial year and outline our plans with specific amounts per programme.

The Department of Small Business Development is allocated R2.4bn for the 2020/21 financial year which was reduced during the Special Adjustment Budget process by R67m to R2.3bn and it is allocated as follows:  Transfers and subsidies consume 90.3%, or R2.1bn, whilst operations are provided 9.7%, or R227.7m, of the allocated resources.  The R2.1bn of transfers and subsidies provide for:

  • Seda’s allocation of R859.1m, which is 40.7% of the transfers and subsidies
  • Sefa’s allocation of R1.2bn, which is 54.7% of the transfers and subsidies
  • The Department administers the remaining R98.5m through the incentives that are internally administered by the department which include the Cooperatives Incentive Scheme (R63.7m), Black Business Supplier Development Programme (R13.7m), Craft Customised Sector Programme (R11.1m) and National Informal Business Upliftment Scheme (R9.8m).

From sefa’s total budget allocation, an amount of R246m does not form part of Budget Vote 36, as yet. It is transferred through the Budget Vote on the dtic as sefa is a subsidiary of the IDC. The Department took a strategic decision to utilize the infrastructure and capacity of sefa in implementing financial support interventions, hence the allocation of R1.2bn of our budget to them. We know they are not perfect but we will work with them in ensuring that we achieve the intended end outcomes which is the provision of affordable finance to SMMEs and Cooperatives.

From the budget of R859.1m allocated to Seda:

  • R160.3m will go to the Seda Technology Programme,
  • R16.2m is allocated to the Capacity Building Programme for Economic Development, and
  • R682.6m is allocated to the agency to ensure that the entity has branches throughout the country that are supporting small enterprises and Cooperatives to access non-financial support services.

Note:  Access the full text of Deputy Minister’s speech here.

2. Address by Minister for Small Business Development, Hon Khumbudzo Ntshaveni (MP) delivered in the National Council of Provinces, 28 July 2020

Honourable members, the Budget we are tabling today seeks to deliver on the clear directives from our State President. Our priorities are five-fold:

First, we have reprioritised the implementation of the Township and Rural Entrepreneurship Programme;

Second, our programme to strengthen the informal businesses is based on dedicated schemes;

Third, localisation is focused on create markets for South African SMMEs and cooperatives produced products and services to drive industrialisation through targeted import substitution and supporting utilisation of local skills and services in the infrastructure build programme;

Fourth, ensure business viability of enterprises including cooperatives by supporting re-entry and restructuring of small enterprises into the new normal and new operating models; and

Fifth, drive precise transformation targets for women and youth empowerment, including race as ordered by the high court. From the onset, we must acknowledge that our strategies for supporting entrepreneurs with disabilities are still yielding nothing to write home about.

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