Parliament of South Africa

11/09/2023 | Press release | Distributed by Public on 11/09/2023 02:28

Media Statement: NSEA Bill Receives Support From All Participants in Matatiele

Parliament, Thursday, 9 November 2023 - The National Small Enterprise Amendment (NSEA) Bill, which is currently being discussed in public hearings in the provinces, received overwhelming support yesterday at the Maluti Civic Centre in Matatiele in the Alfred Nzo District Municipality, where the Portfolio Committee on Small Business Development concluded the Eastern Cape leg of public hearings on the Bill.

In welcoming the establishment of the Small Enterprise Development Finance Agency (SEDFA) by amalgamating three existing entities, representatives of small business forums and cooperatives called for SEDFA offices to be established in every ward and town so that small, medium and micro enterprises (SMMEs) have easy access to their services.

The representatives told the committee that they hope SEFDA will assist them in their struggles to become well-developed businesses, as the suffering they currently experience at the hands of the existing three entities is unbearable. At the moment, they have to travel long distances to the offices to fill in application forms for assistance, then they hear nothing, despite promises to the contrary.

The representatives also welcomed the establishment of the Office of the Small Enterprise Ombud Service and its clearly defined role. They have hopes that this new office will defend them against the exploitation and bullying they say they are subjected to at the hands of bigger enterprises. They also hope that the Ombud will assist them to get land from government. Currently, they allege that they have to compete with foreign nationals for space in which to operate and to market their products.

In its present form, the Bill proposes that the Minister of Small Business Development will be the sole shareholder representative on behalf of the government and the people of South Africa with the power to make regulations and prohibit certain small enterprises practices on the basis of unfair trading. However, some of those present in the public hearings argued that a team of SMMEs should share that responsibility, not the Minister.

The committee Chairperson, Ms Violet Siwela, told those gathered in Matatiele that they should emulate the model used by their counterparts in Germany, which is driven by cooperatives. "Germany has a population of 80 million people and the cooperatives have a significant contribution in the economy of the country and unemployment stands at 3%," said Ms Siwela. She encouraged SMMEs to become the engines of the South African economy and the creators of employment.

Ms Siwela also assured those people who participated in the public hearings that the committee will consider all their views when it completes the public hearings process and deliberates on the Bill. The committee will then submit its report on the Bill to the National Assembly, which then submits it to the National Council of Provinces. Thereafter, it will be sent to the President for assent into law.

ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON SMALL BUSINESS DEVELOPMENT, MS VIOLET SIWELA.

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