Date: 1 December 2021
In a virtual meeting, held on 1 December 2021, the Portfolio Committee on Small Business Development met with the Department of Small Business Development (DSBD), the Small Enterprise Funding Agency (SEFA) and the Small Enterprise Development Agency (SEDA) for a briefing on their Quarter One and Quarter Two Performance Reports for the 2021/2022 financial year.
Overall, the DSBD achieved nine out of 21 (42.9%) of its Quarter One (Q1) targets and 12 out of 21 (54.5%) of its Quarter Two (Q2) targets. The Department spent R797.46 million, accounting for a variance of R15.987 million against its Q1 budget. It presented corrective measures to be undertaken to improve performance. The Department presented that it had a 10% overall improvement on the performance of its programme in Q2.
The Committee noted that the Department had to work on issues such as the 10% vacancy rate; localisation weaknesses; cooperative issues; the new youth program; the under-funding of townships, women, and youth. The Committee requested a progress report to be submitted on the cases it had referred to the Department regarding beneficiaries that were ‘robbed under the name of the Department’.
SEFA presented that it had an amortised total Loan Book as of 30 June 2021 had been R2.7 billion (including funds): R1.24 billion Wholesale Lending (WL) facilities and R1.47 billion Direct Lending (DL) facilities. The quarter on quarter total portfolio growth had been recorded as 8.8% and the loan book portfolio at risk had stood at 39% as of 30th June 2021. The entity’s cost to income ratio for Q1 had been 105% compared to an annual target of 106% and savings in some costs were achieved in quarter one, however, the MTEF quarterly allocation received had been lower than budgeted for (with a shortfall of R36 million). During Q2, of the 23 performance indicators measured through the Balanced Scorecard, 30% had out-performed the quarterly targets, by achieving 100% or more.
The Committee requested that SEFA inform it on how the entity could be assisted in marketing their programmes to more youth as it had been evident that most youth in communities were unaware of the opportunities that were made available by SEFA.
SEDA presented that it had achieved 16 out of 25 indicators in Q1, reflecting an organisational achievement of 64%.This improved in Q2 with 21 out of 25 indicators achieved reflecting an overall achievement of 84%.The expenditure for the period April to June 2021 had amounted to R145.36 million resulting in a pro-rata underspending of R154.42 million, against the pro-rata budget of R299.78 million. The expenditure for the second quarter (July – September 2021), had amounted to R301.37 million against the budget of R154.78 million, resulting in an overspending of R146.59 million, which had been due to the catching up from the first quarter. The total overall spending as of September 2021 had been 98.23% of the year-to-date budget.
The Committee requested that SEDA’s website be improved as communities had been facing challenges registering their companies as it was not accessible or user-friendly and took too long to get the registrations processed
Note: The six presentations and the complete meeting summary can be accessed from the PMG website, here