DSBD & SEDFA 2025/26 Quarter 2 and 3 Performance, with Minister

Video The Committee met to consider the 2025/26 second and third quarter performance reports of the Department of Small Business Development (DSBD) and its entity, the Small Enterprise Development and Financing Agency (SEDFA). In her introductory overview, the Minister reported that the broader economic environment had shown modest improvement, although global economic uncertainties continued to affect small businesses. The Department had achieved 85% of its targets in the second quarter and 82% in the third quarter, while the entity had improved its performance from earlier in the year as executive vacancies were filled and organisational systems strengthened. The Department also reported progress in policy development, including work on new legislation and policy frameworks aimed at improving support for small businesses and addressing regulatory barriers. During the presentations, the Department outlined its programme and financial performance for both quarters, noting achievements such as compliance with governance requirements, maintaining a clean audit outcome, improving female representation at the senior management level, and expanding support programmes for micro, small and medium enterprises. However, it acknowledged areas of underperformance, particularly delays in programme implementation and expenditure under certain initiatives, largely due to administrative and procurement processes. SEDFA reported that it had supported large numbers of enterprises, and injected significant funding into the economy through both financial and non-financial support programmes. Although improvements had been recorded across several programmes, the lending and investment programme remained constrained due to regulatory approval requirements affecting the issuing of credit guarantees. Members engaged extensively with the presentations, and raised a range of questions and concerns. These included requests for further information on sustaining gender representation at senior management level, the impact of red tape reduction initiatives, support provided to informal enterprises, and mechanisms to improve the sustainability of funded businesses. Concerns were also raised regarding regulatory barriers, delays in programme implementation, access to finance for small enterprises, and the capacity of the Department and SEDFA to implement programmes effectively. Some Members emphasised the importance of stronger institutional coordination, improved access to development finance and more direct support to township and rural enterprises, while others acknowledged progress made and commended the DSBD and its entity for the work undertaken.