Impact of E-Commerce and support to MSMEs and Cooperatives

Video President Cyril Ramaphosa: 2026 State of the Nation Address (SONA) Updated 2026 Proposed Draft First Term Committee Programme (awaited document) The Portfolio Committee on Small Business Development met to consider its first-term programme and to receive briefings on the impact of e-commerce, digital platforms, and online intermediation on micro, small and medium enterprises (MSMEs) and cooperatives. During consideration of the draft programme, Members proposed several amendments, including prioritising the appointment of the Small Enterprise Ombudsperson, improving oversight of departmental finances, reintegrating postponed agenda items, and inviting additional departments to account for their roles in supporting entrepreneurs. Concerns were raised about inadequate financial reporting, underspending, weak monitoring of resolutions, and the absence of mechanisms to track implementation. The programme was adopted with amendments, subject to further refinement by the Management Committee. Presentations highlighted the scale and challenges of the township and rural economy, including low levels of business registration, limited access to finance, weak digital infrastructure, high transaction costs, and regulatory barriers. While digital platforms were recognised as offering market access and growth opportunities, presenters and Members noted risks of market concentration, high fees, exclusionary practices, and dependency on dominant platforms. Policy recommendations included improving digital readiness, regulating platform behaviour, strengthening financial infrastructure, expanding skills development, and aligning procurement and competition policy to support inclusive growth. Members expressed concern that existing funding models relied excessively on debt and exposed small enterprises to predatory lending, while state interventions had not sufficiently transformed ownership, control, or access. Broad support emerged for convening a dedicated Township Economy Week or workshop involving Parliament, the Department, regulators, and platform operators to enable deeper engagement and practical implementation. The meeting concluded with an agreement to continue structured engagement on digital economy reforms and small business support.