DSBD & SEDFA Annual Performance Plans 2026/27; Legal Opinion Report on the Appointment of Ombudsperson; with Ministry

Annual Performance Plan (APP) of Government Departments & Entities 2026/27 The Portfolio Committee on Small Business Development met on 6 May 2026 to consider the Department of Small Business Development (DSBD) and the Small Enterprise Development and Finance Agency (SEDFA) Annual Performance Plans (APPs) for 2026/27, as well as a legal opinion report on the appointment of the Ombudsperson. The Minister opened by providing economic context, noting that global growth was projected at 3.3% for the year, while South Africa’s growth forecast remained low at 1.4%, rising to 1.5% in 2027. She emphasised that the Department’s priorities included cutting red tape, improving ease of doing business, enabling market access for small businesses, expanding access to finance, equipping entrepreneurs with skills, and strengthening institutional capacity, including the establishment of a Small Enterprise Ombuds Office. The Director-General (DG) presented the Department’s strategic plan and APP, outlining targets to create over 136,000 jobs and support one million small enterprises over the medium term. Key initiatives included reforming five priority laws, supporting 20 municipalities to adopt e‑registration systems, strengthening 30‑day payment compliance, and linking 150 MSMEs to domestic procurement opportunities. The budget allocated R2.218 billion to financial and non‑financial support programmes. The Acting Chief Executive Officer (CEO) of SEDFA reported that the entity aimed to facilitate R11.5 billion in funding over the strategic period and had already supported over 258 000 small enterprises, creating nearly 95 000 jobs. Challenges included low economic growth affecting client sustainability, insufficient funding to meet demand, merger delays, and high micro, small, and medium enterprises (MSME) failure rates. During the discussion, Members raised concerns about the gap between policy and implementation, particularly regarding municipal payment delays and the effectiveness of red‑tape reduction. One Member proposed the formation of an ad hoc committee on red tape, but the Minister responded that legislative constraints, such as the Businesses Act granting municipalities licensing powers, required a legal framework rather than merely political will. She noted that a Business Licensing Bill had been withdrawn from Cabinet to strengthen certain provisions. Other Members questioned the Department's performance on cooperatives, market linkages, and the exclusionary criteria of the Cooperative Support Development Programme (CSDP), such as requiring a R5 000 bank deposit. On the legal opinion regarding the appointment of the Ombudsperson, Members disagreed over whether the interview process had been procedurally correct. Some Members argued that revisiting the letter sent to legal advisers would cause further delays and that the Committee should accept the legal opinion, which found the process had been followed correctly, save for scoring inconsistencies. Others, however, maintained that the legal opinion was based on an incomplete or inaccurate description of the concerns, particularly regarding procedural irregularities. One Member suggested that the individual concerned should be given an opportunity to respond to any outstanding issues. After extensive debate, the Chairperson concluded that the report would be taken back to the House, where political parties could express their positions during debate, and that the interests of small businesspeople should come first.