DSBD & SEDFA Q4 2025/26 Performance (with Ministry)

The Committee was briefed on the fourth quarter and annual performance of the Department of Small Business Development (DSBD) and the Small Enterprise Development and Finance Agency (SEDFA) for the 2025/26 financial year. The Department reported that it had achieved 92% of its annual targets, with 34 of 37 targets met, reflecting an improvement from previous years and from the third quarter. It was reported that strong performance had been recorded across most programmes, including full achievement in the Integrated Cooperatives and Micro Enterprise Development (ICMED) programme. Progress was also reported in supporting Micro, Small, and Medium Enterprises (MSMEs) through market access initiatives, informal business support, policy development, research outputs and partnerships. However, some targets were not achieved, including those relating to cash flow projections, the Business Licensing Bill, and the Asset Assist Programme, largely due to consultation, procurement, and implementation delays. Corrective measures and revised implementation plans were said to be in place. The Committee was further informed that SEDFA had achieved 73% of its performance indicators while continuing its post-merger integration process. It was reported that more than 44 000 MSMEs had received support through financial and non-financial interventions, with R528 million invested in key sectors and over 31 000 jobs facilitated. While corporate support functions and governance systems performed strongly, concerns remained regarding underperformance in lending and investment activities, contracting delays, legal and compliance constraints, and lengthy turnaround times. SEDFA nevertheless maintained that it was transitioning from integration to stabilisation and that measures were being implemented to improve operational efficiency and service delivery. Members welcomed the overall improvement in performance but raised concerns about the cost of creating jobs, underperformance in the Asset Assist Programme (AAP), delayed implementation of programmes, and the continued challenges faced by township and rural enterprises. Questions were also raised regarding support for cannabis farmers, black-owned media businesses, women entrepreneurs, persons with disabilities, and beneficiaries of the Tourism Equity Fund. Members further expressed concern about municipal by-laws affecting informal traders, the delay in finalising the Business Licensing Bill, and the impact of the SEDFA merger on service delivery. Requests were made for additional information on beneficiary locations; Global Positioning System (GPS) coordinates for oversight purposes, delegated responsibilities within the Ministry, and provincial breakdowns of support provided. The Committee concluded by emphasising the need to address restrictive municipal by-laws and to strengthen support for entrepreneurs, particularly in underserved communities.