The President’s State of the Nation Address (SONA) on Thursday offered encouraging commitments on SME funding, venture capital, and easing business barriers in the informal sector—key drivers of real economic growth. But once again, the details were lacking. SMEs need certainty, not just promises, says SME services provider Lula.
“The government has made progress in job creation and skills development, with initiatives like the Social Employment Fund. Yet, there are still fewer employed people than a year ago, and growth remains sluggish,” says the company’s head of credit Garth Rossiter.
Infrastructure investment is a positive focus, he says.
“Small businesses depend on efficient transport networks—ports, roads, and rail—to trade. The President’s commitments to improving port efficiency, the Transformation Fund, public procurement reform, and disability skills programmes were notable. But without a functional Eskom and water security, none of this will work,” says Rossiter.
It all comes down to getting the basics right. If the government provides reliable energy, transport, security and water, the private sector will create jobs and drive growth.
“Hopefully, the budget speech in a few weeks will bring much-needed clarity on how SMEs will be empowered in the year ahead,” he says.
