Role and impact of provincial investment agencies on small businesses and cooperatives

Video The Portfolio Committee on Small Business Development convened virtually to assess the role and effectiveness of provincial investment agencies in supporting small businesses and cooperatives. The Limpopo Economic Development Agency (LEDA) outlined its legislative mandate and strategic focus on investment attraction and manufacturing support. It reported uneven performance across its property portfolio, with high-performing assets offset by underperforming farms and vacant land. The agency cited ageing infrastructure and tenant retention challenges, and proposed disposing of non-strategic assets while repurposing underutilised facilities. Committee Members questioned the alignment between national and provincial programmes, the accessibility of local economic development services, and the extent to which supported initiatives translate into measurable outcomes, particularly job creation. The Mpumalanga Economic Growth Agency (MEGA) presented its mandate to support historically disadvantaged individuals through financing instruments, including business loans and agricultural funding, as well as infrastructure development. It acknowledged the deterioration of industrial parks and highlighted constraints faced by small enterprises, notably regulatory complexity and unreliable electricity supply. Members called for clearer progress in reducing administrative barriers, raised concerns about the long-term viability of industrial parks, and requested evidence linking investment initiatives to tangible economic returns for communities. Dissatisfaction with aspects of the engagement led to a request for written responses on outstanding issues. Trade and Investment KwaZulu-Natal (TIKZN) reported on its trade and investment promotion activities, including support to 137 companies between 2021 and 2026. Initiatives included COVID-19 relief funding and craft sector development, with exhibition-related transactions amounting to approximately R1.1 million. Committee Members sought clarity on support for coastal economic sectors, including exports and tourism, and raised concerns regarding alleged political interference in municipal support for informal traders. The provincial MEC rejected these allegations and invited written submissions to facilitate further investigation. The Eastern Cape delegation was unable to proceed after failing to submit a presentation in advance. The acting Chairperson ruled that adherence to procedural requirements necessitated prior submission of documentation, and the delegation was excused. The Committee resolved to reschedule the engagement to ensure procedural consistency. The North West province outlined its investment promotion framework, acknowledging financial challenges within its development corporation and detailing planned institutional reforms. The MEC highlighted efforts to address cross-border property management, reduce debt, and collaborate with the national Department of Small Business Development to repurpose properties into economic hubs. Members expressed concern over the slow uptake of the Spaza Shop Fund and the Tourism Equity Fund, referencing prior oversight findings of corruption in the province. The MEC cited research-driven interventions to address structural economic challenges, including legislative reform and environmental management initiatives around Hartbeespoort Dam. The Northern Cape presented its enterprise development framework, with a focus on inclusive growth and targeted support for township and rural economies. The Committee expressed satisfaction with the presentation and did not raise further questions. The Western Cape’s investment agency, Wesgro, outlined its mandate to promote tourism, trade, and investment, highlighting initiatives such as the Cape Trade Portal and international market access programmes. Committee Members questioned support for small-scale fisheries, the balance between foreign and local traders, and the regulation of spaza shops. In closing, the acting Chairperson commended provinces that complied with the Committee’s requirements and cautioned that non-compliant entities would be summoned to appear before Parliament. He reiterated Parliament’s oversight role and the obligation of public entities to account to elected representatives. The Committee resolved to request written responses on outstanding matters, including the Spaza Shop Fund, the Tourism Equity Fund, and support for township economies.