1. DSBD and SEDA 2020/21 Quarter 4 performances: Small Business Development Portfolio Committee (26 May 2021)

Extract from the meeting summary:

The Portfolio Committee met virtually to receive a briefing on the 2020/21 fourth quarter performance of the Department of Small Business Development (DSDB) and Small Enterprise Development Agency (SEDA). The Minister said there had been improvements in the Department, and its challenges were being dealt with.

For DSBD, in the quarter, there were 20 targets of which 16 were achieved resulting in 80% performance. For SEDA, a total number of 23 indicators under review in quarter four, the organisation performed well on 12 indicators, which represents an achievement of 52%.

Members expressed concern about the over-expenditure and under-performance of SEDA. Concerns over the level of corruption and the bullying of female business owners were raised, and the Department and SEDA said measures were in place to deal with this. Some Members complained about the Minister’s lack of involvement in the work of the Department, as her presence was required to deal with its lack of capacity in certain areas.

SEDA informed the Committee that besides currently dealing with cyber attacks, it had been misled, and previous reports were not a true reflection of the performance of the entity. Members were assured that all previous errors would be corrected, because lessons had been learnt, and the entity had implemented new measures.

Note: The full text of the portfolio committee meeting can be accessed here.

2. Small Enterprise Finance Agency 2020/21 Quarter 4 Performance: Small Business Development Portfolio Committee (02 June 2021)

Extract from the meeting summary:

The Portfolio Committee met virtually to receive a briefing on the 2020/2021 Quarter Four Performance of the Small Enterprise Finance Agency (SEFA) for the 2020/21 financial year. Sefa’s amortised Total Loan Book as at 31March 2021 stood at R2.5 billion (including funds). The total approvals for Q4 were R532 million, representing 96% of the quarterly target. Total disbursements for the quarter were R424 million representing 107% of the quarterly target (R200 million Direct Lending (DL) and R224 million Wholesale Lending (WL). In Q4, a total of 10 247 SMMEs received financial support via the Sefa loan programmes, resulting in the creation and maintenance of 14 513 jobs. R372 million has been disbursed to black-owned SMMEs, R94 million to townships based SMMEs, R121 million to women-owned SMMEs and R107 million to youth-owned enterprises. The loan book portfolio at risk stood at 37% as at 31 March 2021. The COVID-19 pandemic impacted negatively on the achievement of the disbursements targets due to the lockdown and uncertainty in the economic environment.

The Deputy- Minister assured the Committee that the Department will be able to understand and respond to all questions. Issues of passive communication from SEFA and disbursements for people living with disabilities were raised. Some Members asked for a clarification regarding the figures of applications, both approved or declined. Other Members asked about the implications of the pandemic on collections. The entity assured Members that measures are in place to deal with any issue.

Note: The full text of the portfolio committee meeting can be accessed here.

DSBD, SEDA 2020/21 Quarter 4 performance: presentations

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