Free State Oversight Visit Report; Committee Tracking Tool

The Committee met for its final sitting of the year to consider its Free State Oversight Report, receive an update on progress made through the Committee's Recommendations Tracker, and address outstanding governance and oversight concerns relating to the Department of Small Business Development (DSBD) and its entities, including the Small Enterprise Development and Finance Agency (Sedfa). It was reported that the Committee discussed persistent challenges relating to departmental responsiveness, implementation of past recommendations, and the need for clearer accountability mechanisms. Members agreed that departments and state entities would be required to appear before the Committee early in the new year to account for delays and provide detailed progress on outstanding matters. During the consideration of the Free State Oversight Report, the Content Advisor was reported to have outlined key findings from the oversight visit, including observations on the Spaza Shop Support Fund (SSSF), the role of Provincial Investment Promotion Agencies (PIPAs), and challenges in municipal service delivery that continued to undermine small-business sustainability. Members raised further concerns about the high interest rates charged by micro-lending institutions funded through public resources, the inadequacy of post-investment monitoring by Sedfa, and the limited awareness of government support programmes among small enterprises. Several recommendations were proposed, including strengthening oversight of funding models, improving communication with beneficiaries, reviewing the role of intermediaries, and ensuring the full funding of business plans rather than partial support. The Committee’s discussion also reflected frustration with recurring administrative and operational shortcomings across provinces. Members cited examples of underperforming Provincial Investment Promotion Agencies (PIPAs), difficulties experienced by Micro, Small and Medium-Sized Enterprises (MSMEs), and inadequate support for youth-led and township-based enterprises. It was further noted that Members called for a reassessment of the use of outsourced delivery partners and emphasised the need for a stronger on-the-ground presence from the Department and Small Enterprise Development and Finance Agency (Sedfa). Concerns about transport safety during oversight were also raised, with Members recommending formal intervention to address unsafe driving practices during official visits. When considering the Recommendations Tracker, Members expressed deep concern over the Department’s continued failure to respond to Parliamentary correspondence within required timeframes and its inconsistent reporting on previously issued recommendations. It was reported that Members viewed the absence of substantive feedback as evidence that the Department did not take the Committee’s work seriously. They therefore proposed that dedicated quarterly sessions be scheduled to review the tracking tool, with mandatory attendance by the Department and its entities. Members further expressed their disappointment with the Minister of Small Business Development, Ms Stella Ndabeni-Abrahams’ failure to come before the Committee to account on behalf of the Department. They emphasised the statutory obligation of Ministers and accounting officers to appear before Portfolio Committees and requested renewed efforts to ensure compliance. The Committee concluded by noting Members’ preference for an international study tour to Brazil, with Kenya as an alternative option, focusing on lessons relating to red tape reduction, access to finance, and the formalisation of MSMEs. In closing, Members expressed appreciation to the Secretariat for its efforts throughout the year and conveyed their good wishes for the festive season and the new year.