Responses outstanding from previous meeting; Small Business Development Budget Vote Report; Appointment of Small Enterprise Ombudsperson Report

Video Annual Performance Plan (APP) of Government Departments & Entities 2026/27 The Portfolio Committee on Small Business Development met to consider its 2026/27 Budget Vote Report, the report on the appointment of the Small Enterprise Ombudsperson, outstanding responses from the Department of Small Business Development (DSBD) and the Small Enterprise Development and Finance Agency (SEDFA), and the amended Committee programme. The Committee also dealt with matters arising from prior engagements, including municipal licensing challenges affecting spaza shops, red tape reduction interventions, cooperative support frameworks, communication of departmental activities, and the scheduling of oversight activities and an international study tour. DSBD and SEDFA provided responses to outstanding issues from earlier deliberations on the Annual Performance Plans (APPs). SEDFA addressed Companies and Intellectual Property Commission (CIPC) support as part of its formalisation assistance, blended finance monitoring arrangements linking grants and loan facilities, and cooperative classification thresholds, including the R250 000 turnover ceiling used to distinguish categories. SEDFA also reported on case-specific funding matters and ongoing engagements with the National Empowerment Fund (NEF). The DSBD responded to targeted sectors, geographic distribution of interventions, cooperative development support, digital infrastructure constraints, and youth enterprise programmes, including the Township and Rural Entrepreneurship Programme (TREP) and related instruments. The Committee Content Advisor presented the draft Budget Vote Report, highlighting concerns relating to output-driven performance indicators, limited measurement of developmental outcomes, procurement-related gaps, fragmentation of small business support functions across government, and transitional issues linked to the establishment of SEDFA. Members raised concerns regarding municipal delays in licensing processes for spaza shops, the effectiveness of red tape reduction measures, and the absence of clear mechanisms to assess the cost of doing business. Divergent views emerged on whether licensing functions should remain with municipalities or be centralised under SEDFA, with Members citing both municipal capacity and local knowledge on one hand, and administrative delays and dysfunction on the other. Concerns were also raised regarding cooperative funding criteria, including reported bank balance requirements, and the need for clearer and more consistent application guidelines. Members further raised concerns regarding inadequate communication from the Department on provincial programme activities, with a call for improved coordination and structured information sharing with the Committee. The Committee adopted the Budget Vote Report with amendments and agreed that outstanding issues, particularly those relating to municipal licensing processes and cooperative funding requirements, should be consolidated for further structured engagement with DSBD and SEDFA. The report on the appointment of the Small Enterprise Ombudsperson was considered, with Members raising concerns regarding the scope of the legal terms of reference and the alignment of the legal opinion with procedural concerns raised during the interview process. The amended Committee Programme was presented, debated, and adopted, with adjustments to oversight scheduling, public participation activities, inter-committee engagements, and the proposed study tour, subject to parliamentary guidance. The Chairperson concluded by urging procedural discipline, consistency in decision-making, and adherence to agreed positions.