Policies & Regulation South Africa

The key objective of this EDSE Programme component is to enable the Department of Small Business Development (DSBD) to play a central role in creating a policy and regulatory environment for SMMEs that enables growth, job creation and empowerment. This requires addressing fundamental challenges in the way policy and regulations are developed and enacted. A key tool will be the OECD SME Policy Index, which will be used as a benchmark against the current set of SMME policies and regulations in place in South Africa.

To accomplish this, the technical assistance team will engage in the following activities:

Strengthening of DSBD evidence-based policy development and Monitoring, Evaluation, and Learning (MEL) capacity

This intervention aims to build capacity within DSBD to improve its ability to undertake policy implementation self-assessment and to benchmark the results with other countries; to design better programmes; Improving DSBD stakeholder engagement capacity to facilitate Public-Private Dialogues; implement regulatory and socio-economic impact assessments early in the policy cycle; undertake and utilise SMME research; and establish effective monitoring, evaluation and learning (MEL) systems and practices.

Improving knowledge management and coordination of information on Business Development Services (BDS) for SMMEs through the development of a National Small Business Portal

The technical assistance team is providing support to strengthen DSBD’s capacity for Public-Private Dialogues to overcome barriers to transparency and to improve access by SMMEs to information and to facilitate the inclusion of SMMEs, and other stakeholders, in the policy-making debate, while helping solve key SMME development constraints related to lack of BDS coordination, unfair regulations and non-transparent information.

Technical assistance for set-aside programmes

Technical assistance is being provided to DSBD, DAFF and other stakeholders for an effective and transparent approach to the design, implementation and monitoring and evaluation of set-aside programmes.

Technical assistance is being provided to DSBD for the development of the Central Suppliers Database.

Improvement of technical capacities for improved regulation and implementation of Red Tape Reduction initiatives

This entails capacity building and technical assistance to DSBD for the introduction of best practice and tools for improving SMME regulation  and the implementation of red tape reduction measures.  It will also assist DSBD in improving knowledge, skills and implementation capacity for assessing the impact of regulations utilising the Social and Environmental Impact Assessment (SEIA) methodology.

Technical assistance for the modernization of the ecosystem of  cooperative enterprises, and the development of a commercially oriented cooperative model for the agriculture sector

This includes a review of the existing broad cooperative policy environment, proposing strategic interventions which will align cooperative development policy and support measures across government departments.

Technical assistance for review of the Integrated Strategy on the Promotion of Entrepreneurship in urban and rural areas

This will include capacity building to DSBD to engage with international best practice in SMME development; analysis of the implementation challenges around the Integrated Strategy on the Promotion of Entrepreneurship and Small Enterprises; and the development of an updated ISPESE, with an implementation plan and appropriate supporting mechanisms.